Iran Statutory Severance Pay (Hagh-e Sanavat) Calculator
Determine statutory termination indemnity under Article 24 of the Iranian Labor Code with pro-rata monthly allocations.
Direct Statutory Calculation Result
Calculation Parameters (Direct Taxes Act & Iranian Labor Code)
Statutory Itemized Breakdown
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Frequently Asked Statutory Questions
What is Hagh-e Sanavat in the Iranian Labor Code?
Under Article 24 of the Labor Code of the Islamic Republic of Iran, upon termination of employment (resignation, dismissal, retirement, or contract expiration), the employer is legally obligated to pay the employee severance equal to 1 month of last-drawn salary for each completed year of service.
Are fixed-term contract workers entitled to Sanavat?
Yes. The Supreme Administrative Court (Divan-e Edalat-e Edari) ruled that fixed-term contract workers are entitled to Sanavat upon completion of each contract term, even if the contract was for less than 1 year (pro-rata).
How are fractional years of service calculated for Sanavat?
Fractional periods are calculated precisely pro-rata: (Extra Months ÷ 12) × Monthly Wage.
Is severance pay (Sanavat) subject to income tax or SSO deductions?
No! Under Article 91 of the Direct Taxes Act, end-of-service severance pay (Sanavat) is 100% EXEMPT from personal income tax and is also exempt from Social Security Organization (SSO) contribution deductions.
When must Sanavat be paid upon employment termination?
Employers must settle all Sanavat, unused leave cashout, and pending salary on the final working day or within the final monthly payroll settlement.
Engr. Muhammad Shahzad
Verified Fiscal & Statutory AlgorithmistLead software architect and statutory modeling specialist with over a decade of experience designing enterprise-grade algorithmic frameworks, double-entry financial models, and statutory compliance engines across European and global regulatory jurisdictions.
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Iranian National Tax Administration & SSO Social Security Architect
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.