Guide to employment, payroll and benefits in

Iran (Islamic Republic of)

Rivermate offers complete payroll, benefits and compliance services for

Iran (Islamic Republic of)

01. Overview

Last updated: 

August 19, 2021

Iranian Rial
Ease of doing business
GDP growth

02. Grow your team in

Iran (Islamic Republic of)

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Iran (Islamic Republic of)

, particularly if you don't have established local relationships. You can hire employees in

Iran (Islamic Republic of)

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Iran is a country in Western Asia that is also known as Persia and is officially known as the Islamic Republic of Iran. Armenia and Azerbaijan border it on the northwest, the Caspian Sea on the north, Turkmenistan on the northeast, Afghanistan on the east, Pakistan on the southeast, the Persian Gulf and the Gulf of Oman on the south, and Turkey and Iraq on the west. Iran has a population of 83 million people and a land area of 1,648,195 km2. It is the Middle East's second-largest nation, with Tehran as its capital and largest city. Iran is home to one of the world's oldest civilizations, dating back to the fourth millennium BC with the founding of the Elamite kingdoms. It was first united by the Iranian Medes in the seventh century BC, and it reached its territorial apex in the sixth century BC, when Cyrus the Great established the Achaemenid Empire, which grew to become one of the world's first superpowers and one of the largest empires in history. The empire was split into several Hellenistic states after Alexander the Great conquered it in the fourth century BC. The Parthian Empire was established in the third century BC by an Iranian revolt, and was replaced by the Sasanian Empire in the third century AD, which ruled for the next four centuries. In the seventh century AD, Arab Muslims invaded the kingdom, resulting in Iran's Islamization and eventual transformation into a major center of Islamic culture and learning, with its art, literature, philosophy, and architecture spreading throughout the Muslim world and beyond during the Islamic Golden Age. Before the Seljuq Turks and the Mongols invaded the area, a series of native Muslim dynasties arose over the next two centuries. The native Safavids re-established a unified Iranian state and national identity in the 15th century, marking a watershed moment in Iranian and Muslim history with the country's conversion to Shia Islam. Iran re-emerged as a major world power during the reign of Nader Shah in the 18th century, though a series of wars with the Russian Empire resulted in substantial territorial defeats by the 19th century. The Persian Constitutional Revolution occurred in the early twentieth century. Attempts to nationalize its fossil fuel supply from Western corporations culminated in an Anglo-American coup in 1953, which gave Mohammad Reza Pahlavi more autocratic rule and increased Western political power. In 1963, he embarked on a series of far-reaching changes. Ruhollah Khomeini, the country's first Supreme Leader, founded the new Islamic Republic in 1979 after the Iranian Revolution. Iran's government is an Islamic theocracy with elements of presidential democracy, with ultimate authority vested in an autocratic "Supreme Leader," Ali Khamenei, who has held the position since Khomeini's death in 1989.

04. Public holidays

05. Types of leave

Paid time off

Public holidays

Sick days

Maternity leave

Paternity leave

Parental leave

Other leave

06. Employment termination

Termination process

Notice period

Severance pay

Probation period

07. Working hours



08. Minimum wage


Iran's minimum wage is set annually at 712,000 Iranian tomans ($215) (equivalent to 7120000 rials). It is determined by sector and region.

09. Employee benefits


Iranian nationals, expatriates, and employers are all required to contribute to the Iran Social Security Organization (SSO), which runs a state pension scheme and provides unemployment, sickness, maternity, and disability benefits.

Employees are entitled to an end-of-service benefit if their employment is terminated (for any reason). This benefit is calculated using a statutory formula based on the employee's salary and length of service.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Iran (Islamic Republic of)

to hire a team takes time, money, and effort. The labor law in

Iran (Islamic Republic of)

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Iran (Islamic Republic of)

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Iran (Islamic Republic of)

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Iran (Islamic Republic of)

via our Employer of Record / PEO solution.

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