Business insurance premium rates have been announced + details

According to the minimum wage circular of the year 1402 of the Ministry of Cooperation, Labor and Social Welfare, from the beginning of the year 1402, the minimum daily wage at the same rate for all workers subject to the labor law (either permanent or temporary contract) was set at the amount of 1,769,428 rials. Also, from the beginning of 1402, other wage levels also increased by 21% of the fixed wage or basic wage (the subject of Article 36 of the Labor Law) in addition to 83,596 rials per day compared to the last wage in 1401.

With the application of the increase in the above clause, the wages of workers included in the job classification schemes approved by the Ministry of Cooperatives, Labor and Social Welfare, as well as the fixed wages of other workers, should not be less than the amount of 1,769,428 Rials.

In this regard and considering the change of the daily minimum wage and other wage levels and minimum benefits paid to workers subject to the labor law in 1402, on the sixth day of April, the social security organization issued the wage circular based on the deduction of insurance premiums in 1402.

Announcing the daily wage as the basis for collecting insurance premiums
According to this circular, the minimum daily wage is the basis for collecting insurance premiums for insured persons subject to labor and social security laws (excluding jobs and activities with lump sum wages) in the amount of 1,769,428 Rials, and other wage levels are the basis for deducting insurance premiums based on the last daily wage of 1401. , equivalent to 21% plus the daily fixed figure of 83,596 Rials will increase.

Daily wage of the job in 1402 = (83,596+1/21 x the last daily wage of the job in 1401)

Including welfare benefits and housing rights in contracts

The circular of the social security organization also states: Considering that according to paragraph (3) of the approval of the Supreme Labor Council, the employers subject to the labor law, all workers, whether permanent or temporary, single or married, will be given 11 million rials per month for the cost of consumables. Households should pay workers subject to the law as welfare and incentive benefits as well as housing rights (ISNA explanation: the amount of housing rights for this year was approved by the Cabinet last week and was set at 9,000,000 Rials), so the employers of workshops subject to the labor law When setting up the wage and benefits statement, they should enter the mentioned amounts along with other items subject to insurance premium deduction, including food during employment, etc., in the relevant column and deduct the related insurance premium and pay it to the branch.

Also, according to paragraph (2) of the said resolution and its notes below, as well as the instructions issued by the General Directorate of Labor Relations and Service Compensation of the Ministry of Cooperation, Labor and Social Welfare and the relevant tables, all employers are obliged to pay the annual base salary of workers subject to the labor law. both workshops with a classification plan and without a job classification plan) who “have at least one year of work experience in the same workshop or one year has passed since receiving their last seniority” the daily amount of 70,000 Rials due insurance premium will be deducted and pay to the organization in accordance with Article (39) of the Social Security Law and the relevant executive regulations.

According to the circular of the Social Security Organization, when calculating the insurance premiums of those insured persons whose wages are higher than the minimum daily wage of the previous year in the last inspection report made before April 1, 1402, if in 1402 the employer refused to send the list and If the insured persons refuse to pay the insurance premium or do not announce their resignation in the sent lists, their wages should be determined according to this circular and then the basis for calculating the insurance premiums for the months in which the list was not sent.

Wages based on deduction of insurance premiums for optional insured persons
In the case of optional insured persons, it is also stated in this circular that the minimum basis for payment of insurance premiums for the optional continuation of insurance in 1402 will be equal to 1/2 times the minimum wage approved by the Supreme Labor Council.

Also, the basis for paying the insurance premium for the optional continuation insurance policyholders, whose basis for paying the insurance premium in 1401 was higher than the daily figure of 1,393,250 Rials, is increased by 21% equivalent to the daily fixed figure of 83,596 Rials, as in other salary levels. In any case, it will not be less than 1/2 of the minimum wage approved by the Supreme Labor Council.

Basis for daily premium payment in 1402 = (83,596+1/21 x last basis for daily premium payment in 1401)

Salary based on deduction of insurance premiums for self-employed persons
The minimum basis for paying insurance premiums for self-employed and self-employed insured persons will be equivalent to 1,769,428 rials per day in 1402, and in cases where the salary basis for paying insurance premiums for self-employed and self-employed persons is higher than the minimum wage approved by the Supreme Labor Council in 1401. The relevant wage coefficient should be observed compared to the minimum wage approved by the Supreme Labor Council in 1402.

In this circular, it is also announced that all payments of unemployment insurance recipients whose unemployment date is from April 1, 1402 onwards, will be in compliance with the minimum wage of 1402. Also, the payments of those who received unemployment benefits from previous years, which continue in 1402 and whose amount is less than the mentioned minimum wage in 1402, will be restored to the amount of the minimum wage in 1402.

Wages based on the deduction of insurance premiums for construction workers
The lump-sum wage coefficients of construction workers subject to paragraph (4) of the one thousand four hundred and fifty-fifth meeting dated January 23, 1392 of the board of directors of the organization, are determined as follows and will be the basis for receiving insurance premiums and legal obligations from April 1, 1401.

A) First-class worker (skilled worker, master worker) 1/4 times the minimum wage

b) Second-class worker (semi-skilled worker, assistant foreman) 1/3 times the minimum wage

c) – Third grade worker (general worker) 1/2 times the minimum wage

According to the above paragraph, the insurance premium of construction workers should be based on the level of skill declared in their technical skill card and based on the daily fixed wage of the relevant job by applying coefficients of 1/2, 1/3, 1/4 times the minimum wage (respectively 2,123, 300, 2,300,300 and 2,477,200 rials) to be calculated and collected based on the skill level of the said workers and in accordance with the approvals of the board of directors.

How to calculate and amount of insurance premium this year
According to Article (28) of the Social Security Law, the amount of the insurance premium is 30% of the wages or salary of the insured persons subject to the labor law, of which 23% (20% insurance premium + 3% unemployment insurance) is the responsibility of the employer and 7% is the responsibility of the insurance company. (which, in addition to the above-mentioned rate, three percent is also provided by the government).

According to Article (36) of the law, the employer is responsible for paying the insurance premium for his and the insured’s share to the organization, and he is obliged to deduct the insured’s share and add his share to the social security organization at the time of payment of wages or salaries and benefits.

Insurance premiums can be divided into four main categories:

1- The insurance premium which is calculated and determined based on the wages and salaries paid by the employer and is presented to the organization’s branches in the form of the insurance premium payment list.

2- The insurance premium paid in lump sum and based on Article (35) of the law by the social security organization for some jobs and in accordance with the legal criteria, including the approval of the Supreme Labor Council regarding the change of the minimum daily wage and other wage levels and the minimum benefits paid to workers subject to the law The work is determined every year and the employers are obliged to send the list and pay the insurance premium of the workshop insured based on the determined salary.

Lump sum wages are relevant only for some union jobs and it is a wage that the employer is required to comply with in the context of calculating and paying workers’ insurance premiums and is not allowed to pay insurance premiums based on a wage lower than the lump sum wage announced for each year.

3- About how to determine the wages of voluntary insured persons and freelancers:

1-3- How to determine the wages of optional insured persons:

The basis of insurance premium payment for those who have more than 5 years of history of paying insurance premiums is between 70 and 100% of the average salary of the last (360) days before applying for optional insurance at the applicant’s choice, provided that it is less than 1/2 of the minimum salary approved by the council. Excellent work should not be less, and the basis for paying insurance premiums for applicants who have five years and less than five years of insurance premium payment history will be between 1/2 of the minimum wage and the maximum wage of the employed. From the beginning of each year, according to the regulations approved by the Supreme Labor Council, the basis for paying insurance premiums increases to the salary levels of the employees.

2-3- How to increase the insurance salary of freelancers and freelancers:

The insurance premium that is determined for the insured persons of professions and independent and optional jobs (self-employed) is determined based on the declared salary and wages of the applicant and the agreement between them. In this case, the declared salary should be between the minimum and maximum salary for the year in question.

4- The insurance premium of working people in the implementation of work stoppage contracts, which is calculated in two ways:

a) Contracts that are subject to Article 40 of the Law on Removing Obstacles to Competitive Production and Improving the Country’s Financial System approved on May 1, 2014, as well as Article 11 of the Law on Maximum Utilization of the Country’s Production and Service Capacity and Protection of Iranian Goods, approved on May 15, 1998, and work by the same employees The workshop is carried out in the fixed place of the contractor’s workshop according to the salary and rights of the working people and the inspection is calculated and demanded according to Article 47 of the law, and they are exempted from determining the ratio of wages to the total work according to Article 41 of the Social Security Law.

b) Contracts that are outside the criteria of paragraph one, according to Article 41 of the law, the ratio of wages to the total work is determined and the insurance premium is calculated and demanded based on it.

In general, the premium is calculated based on the following formula:

Insurance premium = {(daily salary * number of working days) + housing allowance + welfare and incentive benefits} *30%