Principles of Job Classification System According to the Iranian Labour Law Prepared by: RRC HR Consulting Group www.isurvey.ir

Legal Obligations According to labour law, Employers who has employed more than 50 employees, must apply job classification system. It must be done just after issuing startup certificate. www.isurvey.ir

Job classification is main output of a process. It requires: 1- Organization formal design and finalizing job titles & hierarchy and organizational relations 2- Creating Job profile which includes job purpose and definitions in line with strategy, Job requirements and competencies. www.isurvey.ir

Progress Report The project usually starts with a formal contract and needs to be approved by ministry of labour. The contract defines critical points which companies together with a certified consultant should inform the progress and achievements to the ministry (like finalized Org. chart, draft of salary calculations and etc) After business management and ministry approvals, employer have to apply this in to the remuneration. www.isurvey.ir

Job classification consultant has to study all jobs with their condition and context. Then he/ she will allocate scores to every single job with a closed cooperation of internal team. www.isurvey.ir

3- Scoring will be according to 4 main items: 3-1- Skills (Qualification & Experience) 3-2- Responsibilities (Supervising, HSE responsibilities, Materials and products, Equipment, Relations, financial & Forms) 3-3- Nature of work (Mental & Physical) 3-4- Working Situations (Unpleasant working environment and Dangers involved in positions www.isurvey.ir

Here we explained a brief summary of the evaluation and scoring system: After clarifying the score of the job, the equivalent grade will be allocated base on grade table (Between 1 to 20). www.isurvey.ir

Grades and score ranges: Up to 70 => 1 71 – 85 => 2 86 – 100 => 3 101 – 115 => 4 116 – 130 => 5 131 – 150 => 6 151 – 170 => 7 171 – 190 => 8 191 – 215 => 9 216 – 240 => 10 241 – 270 => 11 271 – 300 => 12 301 – 330 => 13 331 – 370 => 14 371 – 410 => 15 411 – 450 => 16 451 – 500 => 17 501 – 550 => 18 551 – 610 => 19 611 – 670 => 20 www.isurvey.ir

Main variables for determining new salary (After job classification) There must be an agreement from management for acceptable cost increase An agreement on scores and grades of the job is required Current salary of employees also affects www.isurvey.ir

Supervision Allowance There is an option for adding supervision allowance to the Job classification system. It is base on business management decision and approval www.isurvey.ir

Coupon Allowance Food Allowance Housing allowance Child allowance Legal payments which should be paid in any time according to ministry instruction. They are: Coupon Allowance Food Allowance Housing allowance Child allowance www.isurvey.ir

Principles of the payments changing in the new designed system: Increase cost is base on management team decision If some body’s new calculated salary came down, then employer should continue to pay current salary but freeze the salary up to the time when he/she is eligible for salary increases www.isurvey.ir

Company should arrange a Job Classifications Committee which includes 5 members: Two of them must be representatives of employer Two of them must be representatives of employees One of them must be representative of supervisor www.isurvey.ir

JC Committee’s main duties: Mentioned committee’s duty is cleared by ministry in the regulations. They will decide about effective and relevant experiences, and also prepare employees for changes in the system if required and also recommend the required changes to the management team. www.isurvey.ir

Job Evaluation in Practice Companies Usually use a mix of methods to be in line with legal requirements, and also international standards and satisfy their employees as well as planned required performance. Rayan Rahbord Chabok is a team of experts who are skillful in different methods and can implement a suitable job evaluation and remuneration system for international businesses active in Iran. www.isurvey.ir

Rayan Rahbord Chabok HR Consultant Company +98 21 44667408 We wish success for your business Rayan Rahbord Chabok HR Consultant Company +98 21 44667408 www.isurvey.ir