# Hiring in Iran: employment costs, payroll and compliance

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> Statutory data last updated: 2026-02-23. Every figure below carries its own source year.

## Country

| Field | Value |
|---|---|
| Region | Asia |
| Currency | IRR (Iranian Rial) |

## Pay & working time

| Field | Value | Source year |
|---|---|---:|
| Minimum wage | IRR 53,073,300 | 2024 |
| 13th-month salary | mandatory | 2026 |

## Employer cost & tax

| Field | Value | Source year |
|---|---|---:|
| Employer social security | 23% | 2024 |
| Employee social security | 7% | 2024 |

## Termination

| Field | Value | Source year |
|---|---|---:|
| Notice period | 0 weeks | 2025 |
| Severance pay | 23.1 weeks | 2025 |

## Leave & time off

| Field | Value | Source year |
|---|---|---:|
| Paid annual leave | 26 days | 2026 |
| Maternity leave | 38.6 weeks | 2026 |
| Paternity leave | 2 weeks | 2026 |

## Labour market

| Field | Value | Source year |
|---|---|---:|
| Retirement age | 60 | 2018 |
| Unemployment rate | 8.3% | 2025 |
| GDP per capita | $5,190 | 2024 |

## Overview

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.

## Cost context

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.

## Things to watch

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.