PEO in Iran - A New Road to Expansion | INS Global
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PEO in Iran

Hire Globally, Pay Locally, Expand Effortlessly

INS Global offers global PEO (Professional Employer Organization) and EOR (Employer of Record) services for companies hoping to expand overseas in over 80 countries.

Having a PEO as your partner in Iran allows you to efficiently transfer or hire employees across countries without requiring a legal or physical presence in the target country.

With INS Global’s Iran PEO, you will have all your HR services taken care of, but you’ll also be able to reduce time and costs.

PEO in Iran - Summary

Five Advantages of Having a Global PEO Partner

Certified Legal Expertise

A PEO has professional legal experts who will guide you through unfamiliar systems and help you avoid making any costly mistakes

Condensed Set Up Time and Costs

Traditional company incorporation can take months or even a year before you’re fully set up. A PEO can have you up and running in a new country within just a few days

Focus on Growth Targets

With your PEO service provider handling all your HR needs, you’ll have more time and energy to devote towards o achieving your company goals

Increased Cost-Efficiency

You can save up to thousands of dollars each year by only paying a single monthly fee for a PEO’s services

Platform Streamlining

Adopt a fast, minimalist approach to your company by having just one point of contact meet all of your HR requirements

PEO vs. Company Incorporation: What are the Benefits of a PEO?

Bringing your company into a new country often involves arduous and complex processes. Even the most minor errors can result in paying high fees and fines. By partnering with a global PEO or EOR services provider, you can benefit from their years of experience and extensive networks, allowing you to set up with better speed and efficiency.

A PEO:
  • Accelerates start time
  • Reduces management input
  • Decreases costs
  • Assures total legal compliance
testimonial from Manuel Ramos

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 

5/5

How Does Our PEO Operate in Iran?

  1. We will contact you and arrange a meeting so that you can tell us what you’re looking for.
  2. Then we’ll draft up a customized service plan for you.
  3. Our PEO provides a legal entity through which you can bring your employees into Iran.
  4. We organize all the hiring procedures and HR management of your team.
  5. You and your staff can continue operations as usual and focus on your success without worrying about HR details and complications.

The Difference Between a PEO and an EOR

Understanding how these two service types function is essential before choosing one to utilize in Iran.

  • A PEO is a third-party company that provides HR services to employees of other companies
  • An EOR does this, too, but it can also legally hire and is responsible for the employees of other companies
  • The contract is made in a PEO agreement between the PEO provider and the client company
  • With an EOR agreement, the contract is directed by the client company but officially made between provider and employee

Regardless of which one suits you better, INS Global offers both PEO and global EOR services in Iran.

Click here to learn more about the differences between the two.

Labor Law in Iran

Employment Contracts in Iran

Contracts made in Iran must be written in Persian with the Iranian rial currency. The agreement must detail all aspects of employment and benefits.

Typically contracts in Iran are either fixed-term or unlimited term contracts. A copy of the contract must be given to both the Department of Labor and the relevant labor council.

Work Hours and Overtime in Iran

In Iran, an average work week is 44 hours and goes from Saturday to Wednesday. Any hours above this are counted as overtime and must be compensated at 140% of normal wages.

Holidays and Annual Leave

There are 22 public holidays annually in Iran. However, the number can go up as there are several other holidays without fixed dates. An employee who has to work during public holidays is entitled to compensation at an overtime rate.

Employees in Iran receive four weeks of paid leave each year and up to five weeks if their work involves dangerous working conditions or physical labor. Employees can carry over up to 9 days of leave into the next year.

Sick Leave in Iran

The Iranian social system covers sick leave. Additionally, an employer may arrange to cover their employees’ sick leave as well.

Maternity and Paternity Leave in Iran

Expectant mothers receive 90 days of maternity leave covered by the state. The mother’s employment position cannot be changed in her absence.

As of 2017, fathers also receive 2 weeks of paternity leave.

Tax Law and Social Security Contributions in Iran

Corporate tax in Iran is 25%. Both employers and employees are expected to give a percentage of their income towards social security benefits. Employers are taxed 23% and employees 7%.

Income tax varies by income and ranges from 0-20%. 

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.

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