Why Hire in Iran
Expanding to Iran
Iran boasts a large, highly educated population with particularly strong technical capabilities in engineering, software development, science, and mathematics.
An EOR setup enables international entities to structure local employment compliant with Iranian Labor Law standards while handling local tax withholdings and administrative burdens without establishing a foreign branch office.
Employment Laws
Employment Regulations in Iran
Under the Iranian Labor Code, standard working hours are capped at 44 hours per week (typically 8 hours Saturday through Wednesday, and 4 hours on Thursday). Probation periods can be agreed up to 1 month for unskilled workers and up to 3 months for specialized or professional staff. Unilateral employer dismissal is heavily restricted and requires approval from the Labor Board.
Taxes & Benefits
Taxation and Employee Benefits
Employers contribute 23% of gross salary toward the Social Security Organization (SSO). Mandatory statutory benefits include 1 month (26 working days) of paid annual leave, paid statutory public holidays, an annual New Year bonus (Norooz bonus), and statutory severance (Eydi/Sanawat).
Payroll Compliance & SSO Filings
Iranian Payroll Standards
Payroll processes on a monthly schedule in IRR. Employers deduct personal income tax and submit monthly social security insurance statements directly to the SSO by the end of the following solar month.
IP Assignment & Data Governance
Intellectual Property and Data Security
Economic rights to inventions, software, and industrial designs created by employees within the scope of their employment contract transfer to the employer under domestic patent and copyright statutes.
