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🇮🇷Complete Iran hiring guide

Hiring in Iran through an EOR (2026)

Here's what you need to know before you hire in Iran: what it really costs an employer, the employment laws that shape the contract, and how an Employer of Record lets you hire compliantly without opening a local entity. Every figure below is sourced and dated.

23%Employer cost on top
IRR 53,073,300Minimum wage / mo
26 daysPaid annual leave
Days, not monthsTime to hire via EOR
Robbin Schuchmann
Written by:
Robbin Schuchmann
Co-Founder at EOR Overview
Last updated: February 23, 2026

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Iran's Labour Code gives employees strong statutory protections from day one, and the rule that shapes your daily obligations most is the absence of a statutory notice period combined with a severance entitlement that is anything but small. With no required notice period on the books, terminations can move quickly in theory, but the severance obligation waiting at the end of any employment relationship is the figure that demands your attention before you make a single hire.

The labour force sits at roughly 29.5 million people, and the minimum wage is set at 53,073,300 IRR per month. On top of every gross salary you pay, you carry a 23% employer social security contribution, which is the single biggest line item in your total employment cost. An Employer of Record (EOR) structure lets you hire in Iran without setting up a local legal entity, and the EOR takes on the compliance burden of payroll, social security filings, and labour law adherence on your behalf.

Iran at a glance

The statutory facts that drive a hire in Iran. Each row shows where the figure comes from and how current it is, so you can trust the number and check it yourself.

Pay & working time

Minimum wageper monthIRR 53,073,300DatedILOSTAT · 2024
13th-month salarymandatoryCurrentNational government · 2026

Employer cost & tax

Employer social securityof gross salary23%DatedISSA Country Profiles · 2024
Employee social securitywithheld from pay7%DatedISSA Country Profiles · 2024

Termination

Notice period0 weeksAgingILO EPLex · 2025
Severance pay23.1 weeksAgingILO EPLex · 2025

Leave & time off

Paid annual leave26 daysCurrentILO EPLex · 2026
Maternity leave38.6 weeksCurrentWorld Bank Women, Business and the Law · 2026
Paternity leave2 weeksCurrentWorld Bank Women, Business and the Law · 2026

Labour market

Retirement age60CurrentSSA Social Security Programs Throughout the World · 2018
Unemployment rate8.3%AgingWorld Bank Open Data · 2025
GDP per capita$5,190DatedWorld Bank Open Data · 2024

What it costs to hire in Iran

Salary is only part of the bill. On top of gross pay you owe employer social security and statutory contributions. Here's what an example salary of $5,000 a year actually costs you as the employer.

Gross annual salary$5,000
Employer contributions≈ 23% of gross+ $1,150
Total employment cost$6,150
Your EOR handles the filings

Illustrative, based on the employer social-security rate above. An EOR adds its own service fee on top of this total and runs the income-tax withholding and statutory filings, which are withheld from the employee's pay, not paid by you.

The main driver of employer cost in Iran beyond gross salary is the social security contribution: you pay 23% of gross salary as the employer share, while the employee contributes a further 7% from their own pay. There are no additional itemised statutory employer contributions in the data record beyond that 23% figure, so social security is effectively the whole story on mandatory on-costs here.

Employer contributions
Social security23%
Employee contributions
Social security7%

Employment-law essentials

The rules an EOR enforces in your contracts, and the ones most likely to trip you up if you tried to hire in Iran on your own.

Working time

Standard full-time hours apply; overtime is regulated.

Pay & 13th salary
Minimum wageIRR 53,073,300
13th-month salarymandatory
Leave
Paid annual leave26 days
Maternity leave38.6 weeks
Paternity leave2 weeks
Termination
Notice period0 weeks
Severance pay23.1 weeks

Statutory minimums shown. Collective agreements or contracts can be more generous; an EOR applies whichever is correct for the role.

Things to watch in Iran

A few specifics about Iran's employment rules deserve close attention before you commit to hiring here.

  • Severance is substantial. The statutory severance entitlement is 23.1 weeks of pay, which means even a relatively short employment relationship carries a meaningful exit cost you need to budget for from the start.
  • No statutory notice period. Iran sets the notice period at zero weeks by statute, so you cannot rely on a notice window to manage workforce transitions. Plan your operational handovers independently of any legal notice obligation.
  • Employer social security adds 23% to every gross salary. This is a significant on-cost. When you are modelling total employment cost, add 23% on top of whatever gross salary you agree with the employee.
  • Retirement age is 60. If you are hiring older workers or planning long-term headcount, factor in that the statutory retirement threshold is 60, which can affect benefit planning and workforce continuity discussions.

EOR vs. opening your own entity in Iran

Use an EOR when…
You're hiring one to a handful of people in Iran.
You want someone working in weeks, not months.
You'd rather not own local payroll, tax and compliance.
You're testing the market before committing.
Open your own entity when…
You're scaling to a large local team long-term.
Per-employee EOR fees outweigh the cost of an entity.
You need full control of local employment and IP.

Choosing an EOR for Iran

Providers with strong Iran coverage onboard faster and carry less risk. A shortlist to start from:

EOR
Globalization Partners
FromContact for pricing
Read review

Compare all EOR providers in Iran

Common questions about hiring in Iran

Common questions about hiring in Iran through an EOR.

Do I need a legal entity to hire someone in Iran? +
No. An Employer of Record (EOR) already has a legal entity in Iran and employs the person on your behalf, so you can hire compliantly without opening your own entity. You manage the day-to-day work; the EOR handles the local contract, payroll, taxes and statutory benefits.
How much does it cost to employ someone in Iran? +
On top of gross salary, employers in Iran contribute roughly 23% in social security and statutory costs. An EOR adds its own service fee on top of that total employment cost.
What is the minimum wage in Iran? +
The statutory minimum wage in Iran is IRR 53,073,300. Pay below this is not permitted, and an EOR will hold contracts to at least this floor.
How hard is it to terminate an employee in Iran? +
Ending employment in Iran generally requires a notice period of around 0 weeks and severance of about 23.1 weeks, subject to the reason for termination and the employee's tenure. An EOR runs the offboarding in line with local law to limit your risk.
How much paid leave do employees get in Iran? +
Employees in Iran are entitled to 26 days of paid annual leave, in addition to public holidays. Statutory leave is one of the entitlements your EOR administers automatically.
About the author
Robbin Schuchmann
Robbin Schuchmann
Co-Founder at EOR Overview
Robbin is the co-founder of EOR Overview, an independent research site for Employer of Record services. He has been in the international hiring space for over a decade.
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