The circular of Eid rules and annual bonus for workers in 1400 was announced

The circular of Eid rules and annual bonus for workers in 1400 was announced

The Deputy Minister of Labor Relations of the Ministry of Cooperatives, Labor and Social Welfare announced the rules related to the amount, manner, calculation and payment of Eid and annual bonus for workers working in workshops covered by the Labor Law.

The method of calculation and payment of Eid and the annual bonus of workers is announced as follows:

Circular on Eid rules and annual bonus for workers in 1400
Article 1- All employers are obliged to pay each of their workers the last salary equivalent to sixty days (two months) for one year of work as a holiday and bonus.

For example, if a worker’s monthly salary is 3,000,000 Tomans, his Eid amount is:

(annual Eid amount) 6,000,000 Tomans = 2 x 3,000,000 Tomans (monthly salary)

Eid floor and annual bonus [for workers who earn minimum wage (885,165 rials per day)] for one year of work, are:

(Floor amount of Eid and annual bonus) 53,109,900 rials = (day) 60 x 885,165 rials (daily wage)

Note 1- The amount paid to each of the workers should not exceed the equivalent of ninety days (three months) of the legal minimum daily wage.

The limit of the amount of Eid and workers’ bonuses, in proportion to one year of work, is as follows:

(Ceiling of Eid amount and annual bonus) 79,664,850 rials = (day) 90 x 885,165 rials (minimum daily wage)

(Ceiling of Eid and annual bonus 7,966,485 Tomans = 3 x 2,655,495 Tomans (minimum monthly salary)

Note 2- In workshops that pay more than the specified amount according to the current procedure of the workshop, the custom of the workshop is valid.

Article 2- Workers who resigned, fired, retired during the year, or their relationship with the workshop is terminated in some way, or workers who have worked in the workshop for less than one year, are entitled to receive an annual holiday and bonus. will be The amount paid to these workers should be calculated based on sixty days in proportion to the number of working days per year.

Note- The amount paid in this regard for each month should not exceed one twelfth of the set limit.

For example, the amount of Eid and the annual bonus of a worker with a daily wage of 1,00,000 Rials who has been working in a workshop for four months is:

20,000,000 rials = (months of work) x (days) 60 x 1,00,000 rials (daily wage)

Article 3- The holiday ceiling and annual bonus of workers who work part-time or less than the full-time working hours of the workshop are calculated in proportion to the hours worked.

For example, the Eid limit and annual bonus for a worker who works part-time or less than full-time with a daily wage of 1,000,000 Rials and 33 hours of work per week is:

67,500,000 rials = (weekly working hours) x (days) 90 x 1,000,000 rials (daily wage)

Article 4- The wage used in the calculation of Eid funds and year-end bonus for wage workers is the average wage received by them according to the length of working days in a year.

Article 5- In the case of hourly employees who do not have a fixed monthly salary and their salary varies per month, for the calculation of Eid and bonus, their average salary will be based on the duration of working days per year.

Article 6- Dealing with disputes arising from the implementation of the law related to determining the holiday and annual bonus of workers working in workshops subject to the labor law is within the jurisdiction of the dispute resolution authorities provided for in the ninth chapter of the labor law.

Ali Hossein Raiti Fard – Deputy Labor Relations

This post is written by Mahdi_kohsoltani