CHAPTER III. WORKING CONDITIONS
Division I. Remuneration
Sec. 34. All lawful income received by a worker pursuant to his employment contract, including wages, salary, family benefits, housing allowance, foodstuffs, free transportation and other benefits in kind, productionincrease bonuses, shares of annual profits and the like, shall be considered remuneration.
Sec. 35. The term "wage" includes all cash payments in kind or nonpecuniary allowances, or combination thereof, that are paid to a worker in return for the performance of work.
Note 1. Where a wage is based on hours of work, it is called an hourly wage; where it is based on the amount of the work done or volume produced, it is called a piecework wage; and where it is based on the volume produced or the amount of work done during a specified period of time, it is called an hourly piecework wage.
Note 2. The standards and benefits relating to hourly wage, hourly piecework wage and piecework wage shall be determined by recommendation of the Supreme Labour Council and approved by the Minister of Labour and Social Affairs. Maximum working time shall not exceed the statutory maximum hours of work.
Sec. 36. The fixed wage consists of the sum of the wage for a job and of the fixed benefits paid for that job.
Note 1. In workplaces which do not apply a job classification and assessment scheme, fixed allowances paid for a job are benefits that are paid because of the nature of work or work environment, or as a wage adjustment during ordinary working time, such as supplements for arduous work, benefits for supervision, job allowance, etc.
Note 2. In workplaces where a job classification scheme is applied, the wage for a given category and step shall constitute the basic wage.
Note 3. Social benefits and incentives, such as housing allowances, benefits in kind, family allowances, productionincrease bonuses and shares of annual profits are not considered part of the fixed wage and basic wage.
Sec. 37. Wages shall be paid at regular intervals, during working hours and in the currency of the country or, by mutual consent, by cheque payable at a bank, with due regard to the following conditions:
- (a)where wages are paid on a daily or hourly basis, by contract, custom or workplace practice, each payment shall be calculated and effected at the end of the day, week or fortnight according to the number of hours or days worked;
- (b)where wages are paid monthly by contract, custom, or workplace practice, payment shall take place at the end of each month. In this case the wage shall be called a salary.
Note. In months of 31 days, salary and allowances shall be calculated and paid to the worker on the basis of 31 days.
Sec. 38. Equal wages shall be paid to men and women performing work of equal value in a workplace under the same conditions. Any discrimination in wage determination on the basis of age, gender, race, ethnic origin and political and religious convictions shall be prohibited.
Sec. 39. The wages and benefits of workers engaged on a parttime basis or working less than the statutory hours of work shall be calculated and paid in proportion to hours of work performed.
Sec. 40. Where part of the wage is paid in kind by mutual consent, the equivalent in cash of such payments shall be equitable and reasonable.
Sec. 41. The Supreme Labour Council shall be responsible every year for fixing minimum wages for the various regions of the country according to the sectors of industry, with regard to the following criteria:
- (1) The minimum wage of workers shall be fixed taking account of the rate of inflation announced by the Central Bank of the Islamic Republic of Iran;
- (2) Regardless of the physical and intellectual abilities of workers and the characteristics of the work assigned, the minimum wage shall be sufficient to meet the living expenses of a family, whose average number of members shall be specified by the appropriate authorities.
Note. No employer shall pay any worker a wage which is less than the fixed minimum wage for work performed during statutory hours of work. In the event of a violation of this rule, the employer must pay the difference between the wage paid and the most recent minimum wage.
Sec. 42. The minimum wage referred to in section 41 of this Code shall be paid exclusively in cash. Such payments in kind as may be provided for in employment contracts shall be in addition to the minimum wage.
Sec. 43. Piecework wage workers shall be entitled to receive wages for Fridays, official holidays and leave, calculated on the basis of the piecework wage they earned for their working days during their last month of work. In any event, the amount paid shall not be less than the statutory minimum wage.
Sec. 44. Where a worker owes money to his employer, only the amount in excess of the minimum wage may, by judicial decision, be withheld to cover his debt. In any event, such an amount shall not exceed onequarter of a worker's total wage.
Note. Maintenance payments to a worker's dependants are excluded from the application of the above section and are subject to the provisions of the Civil Code.
Sec. 45. An employer may withhold part of a worker's wage only in the following cases:
- (a)where expressly permitted by law;
- (b)where the employer has paid the worker a sum of money as an advance;
- (c) as an instalment in repayment of a loan by the employer to the worker, according to the applicable criteria;
- (d)in the event of previous overpayment as the result of miscalculation;
- (e)to cover the rent of organisational or communal housing in an amount fixed by mutual consent, if such housing is rented;
- (f)to settle amounts due by the worker to the consumer cooperative society of the workplace for purchasing household necessities.
Note. In paying back a loan under paragraph (c) above, the amount of instalments shall be fixed by mutual consent.
Sec. 46. Any worker who, by contract or subsequent agreement, is assigned to a post away from the workplace shall be entitled to an assignment allowance. This allowance shall not be less than the fixed wage or basic wage of the worker. Furthermore, the employer shall be required to provide transport or to cover travel costs.
Note. The above arrangement shall apply where the worker must travel 50 kilometres or more from his principal workplace in order to discharge his duties, or where he must spend at least one night at the place of assignment.
Sec. 47. In order to provide an incentive to increase production, improve quality, stimulate interest, and raise the workers' income level, the parties to a contract shall enter into an agreement on the payment of a productionincrease bonus in accordance with rules to be established by the Minister of Labour and Social Affairs.
Sec. 48. In order to prevent exploitation of a person's labour, the Ministry of Labour and Social Affairs shall draw up and implement a job classification and assessment scheme based on the occupational standards and common practice of the country.
Sec. 49. In order to establish an appropriate relationship between each workplace and the labour market with respect to wages, and to clarify the description of duties and responsibilities of the various occupations at each workplace, employers subject to this Code shall draw up a job classification scheme in cooperation with the job classification committee of the workplace or other appropriate bodies, and shall apply such scheme, subject to the approval of the Ministry of Labour and Social Affairs.
Note 1. With regard to workplaces covered by this section, the Ministry of Labour and Social Affairs shall draw up and publish instructions and regulations for implementation regarding job classification schemes applicable to workers and the date of entry into effect of such schemes.
Note 2. The authority and qualifications of individuals and bodies involved in the drawing up of the job classification scheme shall be determined by the Ministry of Labour and Social Affairs.
Note 3. Disputes arising from the implementation of a job classification scheme may be referred to the Disputes Board, subject to the agreement of the Ministry of Labour and Social Affairs.
Sec. 50. Where an employer subject to this Code fails to draw up a classification of jobs in his workplace within the period prescribed by the Ministry of Labour and Social Affairs, the said Ministry shall entrust this task to a technical consulting bureau for job classification or to a qualified person (as provided for in section 49, Note 2).
Note. In addition to the expenses for drawing up the classification, the employer shall pay a fine equivalent to 50 per cent of the consultancy fee, to be deposited in the public income account of the public treasury. Effective on such date as may be specified by the Ministry of Labour and Social Affairs, the employer concerned shall pay the wage difference resulting from the implementation of the job classification scheme.