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Salary and Compensation Insights

Explore salary structures and compensation details in Iran

Market competitive salaries

Understanding market competitive salaries in Iran requires considering several factors unique to the Iranian job market.

Salary Ranges and Benchmarks

To assess competitive salaries, it's crucial to rely on reliable benchmarks.

  • Industry Reports: Reputable organizations and consultancies publish salary reports specific to Iranian industries. These reports provide valuable insights into average and competitive salary ranges for various positions.
  • Job Boards: Leading job boards in Iran often advertise positions with salary ranges. While not an absolute measure, they provide a general understanding of what employers are offering for specific roles.
  • Recruitment Agencies: Reputable recruitment agencies maintain databases on current salary trends across different sectors. Consulting with these agencies can provide valuable insights into competitive compensation packages.

Factors Affecting Market Competitiveness

Several factors influence what constitutes a competitive salary in Iran. Here are some key considerations:

  • Industry: Different industries have varying salary structures. Oil & Gas, Information Technology, and Finance typically offer higher salaries compared to others.
  • Experience and Skills: Salaries naturally increase with experience and specialized skill sets.
  • Location: Cost of living varies across Iranian cities. Tehran, the capital, generally offers higher salaries to compensate for higher living expenses.
  • Company Size and Reputation: Multinational corporations and established local companies often pay more than smaller firms.

Negotiation and Benefits

Understanding market competitiveness goes beyond base salary. Here are additional aspects to consider:

  • Benefits: Competitive packages often include health insurance, paid leave, and other benefits. The value of these benefits should be factored into the overall compensation offer.
  • Negotiation: Iran has a culture of negotiation, and employees can discuss salary offers within reason. Understanding market benchmarks empowers employees to negotiate effectively.

Minimum wage

The minimum wage in Iran is determined by the Supreme Labor Council, a body composed of representatives from the government, employers, and workers' unions. This wage is regulated by the Iranian Labor Law.

Minimum Wage Setting Process

The Supreme Labor Council meets annually to review and adjust the minimum wage. During these meetings, factors such as inflation, cost of living, and economic growth are taken into account. The proposed minimum wage must be approved by representatives of all three parties in the Council.

Minimum Wage Adjustments

The adjustments to the minimum wage are typically announced at the beginning of the Iranian New Year. The most recent revision of the minimum wage took place in March 2024.

Bonuses and allowances

In Iran, labor law mandates certain benefits and allowances for employees, while companies may offer additional perks to attract and retain talent. Here's a breakdown of some common bonuses and allowances:

Mandatory Benefits

  • Paid Leave: Employees are entitled to annual leave, sick leave, and maternity leave.
  • Overtime Pay: Work exceeding regular hours requires overtime pay.
  • Severance Pay: Under specific circumstances, employees are entitled to severance pay.


  • Job Allowances: Certain jobs with specific requirements or hazards may come with additional allowances.
  • Supervisory Allowances: Supervisory positions often receive additional allowances on top of their base salary.
  • Transportation Allowances: Some companies offer employees transportation allowances to help cover commuting costs.

Optional Bonuses and Perks

  • Profit Sharing: Some companies share a portion of their annual profits with employees as a bonus.
  • Production Incentives: Companies may offer bonuses based on achieving specific production targets.
  • Educational Assistance: Some employers offer tuition reimbursement or scholarships to their employees.
  • Wellness Programs: Companies might provide access to gym memberships, health insurance discounts, or on-site medical services to promote employee well-being.
  • Housing or Food Allowances: In some cases, companies might offer allowances for housing or food to support employee living expenses.

Payroll cycle

In Iran, the law mandates a monthly pay cycle for employees. However, variations can exist based on individual contracts or established workplace practices. The Islamic Republic of Iran Labour Code dictates that wages must be paid at the end of each month. This legal requirement ensures timely compensation for employees and aligns with a standard monthly budgeting cycle for most businesses.

Flexibility in Payroll Cycle

While the law mandates a monthly cycle, some flexibility exists. Employment contracts or established workplace practices can deviate from the legal requirement, provided both parties agree. This allows companies and employees to tailor the pay cycle to their specific needs.

Overtime Pay

Iranian law mandates a 40% premium on top of the regular hourly wage for any authorized overtime work. This regulation protects employee rights and ensures fair compensation for extended hours.

Year-End Bonus

A unique aspect of Iranian employment law is the mandatory year-end bonus. Employers must pay their workers the equivalent of two months' wages as a New Year's gift, provided they have completed a year of service. This bonus offers financial security and fosters employee loyalty.

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