Iran Sets the Minimum Wage for Workers and Salary Increases for other Wage Levels.

Nouraei & Mostafavi Law Offices – March 27, 2023- Tehran-The Ministry of Cooperatives, Labour and Social Welfare, via its circular letter number 296137 dated 29/12/1401 (March 20, 2023), has declared the resolution of the Supreme Labor Council regarding the minimum wage of workers to be implemented in the year 1402 (March 21, 2023- March 19, 2024).

In compliance with Articles 41 and 42 of the Labor Code of Iran, the Supreme Labor Council is responsible every year for fixing workers’ minimum wages by taking into account the rate of inflation announced by the Central Bank of the Islamic Republic of Iran. As ordered by Article 41 mentioned above, the minimum wage should be sufficient to meet the living expenses of a family.

The resolution of the Council has set for workers the minimum wage and salary increase in other wage levels, as follows:

Salary increase at the daily time

Minimum daily wage: 1,769,428 rials. (27% increase compared to the minimum wage applied in 1401 (21 March-2022- March 20, 2023). 

Increase for other wage levels: 21% of the fixed or basic wage plus 83,596 rials per day in proportion to the last salary of the year 1401.

Termination Fee Basis: For those with one year of work record in 1401 or one year after receiving their last termination fee, it is a daily amount of 70,000 rials.

Thus, the amounts of salary increases in the monthly period (30-day month) will be as follows:

Minimum monthly wage: 53,082,840 rials.

Wage increase for other wage levels: 21% more of the monthly fixed or basic wage plus 2,507,880 rials in proportion to the last salary of 1401.

Termination Fee Basis: For those with one year of work record in 1401 or one year that has passed since receiving their last termination fee, it is the monthly amount of 2,100,000 rials.

Welfare and incentive benefits:

Workers’ food allowance: 11,000,000 rials per month.

Housing allowance: the recommended amount of 9,000,000 rials which will be implemented after approval by the Cabinet.

In this way, the child allowance for each child will be equal to 5,308,284 rials.

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