Key points of retirement benefits:
1⃣ Equivalent to 30 days of basic salary + continuous benefits
2. It is not necessary for him to work in that place for at least one year.
Based on Note 4, Article 41 of the Law on Removing Obstacles to Competitive Production and Improving the Country’s Financial System, approved on May 1, 2014, employers are required to pay workers with temporary contracts proportional to the length of service, legal termination benefits based on one month of the last salary every year; Therefore, seniority is awarded in proportion to the service period of less than one year.
3. Must not be paid at the end of the year.
4⃣ Seasonal workers receive in proportion to their working period, depending on the case of years.
6⃣ Every subject of the labor law will have the basis of years according to the occupational group.
7. Annuities will be paid only once a year.
8. It is the basis for calculating years of basic salary.
9⃣ Guys, please note that the military service period before entering the work does not include the benefits of years.
In certain cases, according to the majority of authorities, less than one year of age is awarded.
⏸ For dismissed workers, the payment of pensions is deferred until the dismissal is confirmed by the authority.
2⃣1⃣ Service intervals are calculated continuously with alternating days, not the criteria for payment of annual fees.
3 1 ⃣ Termination benefits are not taxed if he intends to continue working, but if he intends to quit his job, it is taxed.
4.1 If the duration of work is, for example, one year and several months, years are calculated by the number of months. We explain this with an example.
If a person’s monthly salary is 10,000,000 Rials and his working period is one year and three months, the years are calculated as follows:
1000000 × 12/3 = 25000000
1000000 + 2500000 = 12500000
The general formula of years:
Basic salary + (continuing benefits) divided by 365 times the performance of each person
Note: It is necessary to explain that the function of each person is the amount of his presence at the workplace or the beginning of his contract until the time of calculation.
5.1 If the termination of the employment contract is due to the reduction of the physical and intellectual abilities of the worker (according to the diagnosis of the medical commission of the regional health and treatment organization with the introduction of the Islamic labor council or the legal representatives of the worker), the employer is obliged to pay equivalent to each year of service Pay him the last salary for two months.
The meaning of salary in the above 2 articles or the basis for calculating the annual salary, in workshops that have a job classification plan, is group and basic wages (base salary) and in units that do not have a plan, fixed wages (sum of job wages and fixed benefits paid according to the job) will be.
6.1 Funds that are saved based on 10% of annual payments to workers will be acceptable expenses from the point of view of the tax auditor.
7.1 According to paragraph 5 of article 91 of the new tax law approved in July 2014, annuities are exempt from salary tax whether they are paid every month or at the end of the year. But in the previous law, the tax was exempted from tax if the annuity was paid at the end of the employee’s service, and otherwise it was taxable.
So remember that with the implementation of the new tax law from the beginning of 2015, (Article 91 paragraph 5), the annual salary is exempt from salary tax, whether it is paid monthly or at the end of the year or at the end of the employee’s service. Because in this paragraph, no condition for eligibility is mentioned and it is stated in general terms, then the annuities are generally exempted from salary tax.
8.1 A worker who submits his resignation in writing to the employer one month before leaving the job, if he is subject to pensions, he will be entitled to receive pensions.
9⃣1⃣ If a person is fired due to the closure of the workshop, the employee will be entitled to receive the benefits.
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Group of accountants, auditors, Tabriz
@Hesabdaran_Tabriz
@Hesabdaran_Tabrizz