Remote’s guide to employing in

iran flag

Whether you want to hire one person or a whole team, Remote's guide to hiring employees and contractors in Iran can help you get started. Note that Remote's employer of record services are not yet live in Iran.

  • Capital City


  • Currency

    Iranian rial (﷼, IRR)

  • Languages


  • Population size


Services available in this country:
Not available
A cliff with red sand and a blue sky.

Facts & Stats

Iran Map Illustration
  • Capital City


  • Currency

    Iranian rial (﷼, IRR)

  • Languages


  • Population size


  • Ease of doing business


  • Cost of living index


  • Payroll frequency


  • VAT - standard rate


  • GDP - real growth rate

    4% (2021)

Iran is a multi-trillion dollar petro-state that holds the world’s fourth-largest oil reserves (amounting to over 10% of the world’s proven oil reserves) in rich deposits like the Ahvaz, Marun, and the Aghajari oil fields. Iran also has the world’s fourth-largest gas reserves.

Like its neighbouring Gulf states, much of that oil wealth has gone into ambitious infrastructure projects that have transformed the mountainous, semi-arid landscape of the nation into a 21st century mosaic of skyscrapers, beach resorts, and ultra-modern highways.

The Islamic Revolution of 1978 - 1979 culminated in the overthrow of Iran’s Shah and themonarchy and led to the accession of a muslim cleric by the name of Ruhollah Khomeini.

In the aftermath of the revolution, Iran has had an uneasy relationship with the west and has been under a number of sanctions forbidding businesses in the United States and much of the west from doing business with Iran.

The Islamic republic is a regional power player located strategically along the Persian Gulf and the Straits of Hormuz — it’s one of the world’s most important shipping lanes where 25% of global oil transport and 33% of LNG passes through

Grow your team in Iran with Remote

Note that we are busy building our own entity in Iran to provide you with the best possible employment solutions for your employees, but our employer of record service is not yet live in this country.

To employ in Iran, companies must own a local legal entity in the country or work with a global employment solution. Developing the processes required to manage payroll, benefits, taxes, and onboarding in countries like Iran can get complicated fast, especially without localised expertise.

If you’re looking to start hiring in a country like this, partnering with a global employment solution like Remote makes it easy for your company to employ workers quickly, cost-effectively, and in full compliance with all local legislation.

In the countries where we do offer our EOR services, Remote takes on the responsibility and legal risks of international employment so you can focus on hiring great talent and growing your business.

Risks of misclassification

Iran, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Iran may lead to fines and penalties for the offending company.

Employing in Iran

Workers’ rights in Iran are spelled out in several laws, such as:

  • The 1979 Constitution of the Islamic Republic of Iran

  • The Labour Code (i.e. Rooznameh Rasmi) of 1991

  • The Civil Code of the Islamic Republic of Iran of 23 May 1928

— all of which guarantee equal pay for equal work, safe working environements, and protections against discrimination based on age, gender, religion, and race.

Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off.

Minimum Wage

Iran’s minimum wage is fixed at IRR 11,112,690 ($262) per month.

Competitive benefits package in Iran

At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practising “fair equity”, which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).

We are still busy building our own entity in Iran, but our benefits packages for all countries are tailored to fulfil the local needs of your employees. Typically, our packages contain some or all of the following benefits:

  • Health Insurance

  • Mental Health Support

  • Vision Insurance

  • Pension or 401(K)

  • Dental Insurance

  • Life and Disability Insurance

Taxes in Iran

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Iran.

  • 14%

    Social Security

  • 6%

    Sickness & Maternity Contributions

  • 3%

    Unemployment Insurance

Types of leave

Iranian employees are entitled to one month of paid leave per year, in addition to the official public holidays. Workers who have been employed for less than a year will receive annual holiday in proportion to how long they worked in that particular year.

Workers engaged in harmful and physically taxing work are entitled to five weeks paid leave per year which should be split into periods taken in each half of the year.

Employment termination

Termination process

Iranian law stipulates that employment contracts terminate automatically under the following situations:

  1. Death of an employee

  2. Retirement of an employee

  3. Total disability of an employee

  4. Expiration of the employment contract or the conclusion of the tasks stated in the contract

  5. Resignation of the employee

An employer is required to pay any benefits accruing to the employee in any of the cases specified above.

Apart from these reasons stated, contracts can also be ended because of neglect of duties or misconduct, and any decision to dismiss an employee must be approved by the Islamic Labour Council or the Labour Discretionary Board.

Notice period

The Iranian Labour Code doesn’t specify notice periods for terminating employees & decisions to dismiss a worker must be approved by the authorities.

Severance pay

Iranian law provides for severance and termination benefits if an employee is suspended unfairly, made redundant (or retired), or disabled and incapable of carrying out their normal line or work.

  1. Suspension — If a labour disputes board finds that an employee was suspended without cause, the employer is required to reinstate the worker in question and pay for all damages (i.e. lost wages and benefits) resulting from the wrongful suspension.

  2. Redundancy & retirement — Employers are required to give redundant and retired employees a severance package equal to a month’s (i.e. 30 days’) wages for every year they’ve been working in the service of the employer.

  3. Disability — Disabled employees are entitled to 30 days’ wages for every year they’ve been working in the service of an employer. This severance entitlement increases to 60 days’ wages if the employee is disabled or incapacited because of the nature of their job, working conditions, etc.

Probation periods

Limited to one month for unskilled and semiskilled workers and three months for skilled and specialised workers. Employers can dismiss workers on probation without any prior notice but are required to pay them the wages they’d have earned for the entire probation period.

Workers who quit during probation are only entitled to the wages they've earned for the period of time they’ve been employed.