Article 28. The sources of income of the organization are as follows: - The insurance contribution from 1st Mehr, 1354 (23 September, 1975) until the end of the year 1354 (March 20, 1976) shall be at the rate of 28% of wages or salaries, 7% of which shall be borne by the insured, 18% by the employer and 3% shall be provided by the Government.
- Income obtained from the funds, reserves and properties of the organization.
- Money obtained from penalties and cash fines specified in this law.
- Grants and gifts.
Note 1. From the beginning of the year 1355 (March 21, 1976) , the employer’s share toward the insurance contribution shall be 20% of the wage or salary of the insured, which together with the Government will increase the insurance contribution 30% of the wage or salary. Note 2. The Government is required to provide its share toward the insurance contribution as a lumpsum in the Annual National Budget and to pay same to the Organization. Note 3. The Organization shall, at least once every three years, conform its financial affairs with actuarial principles and report thereon to the High Council. Article 29. 9% of the basis for calculating the insurance contribution referred to in Article 28 of this law, as the case may be, shall be allocated to secure the expenses arising from coverages mentioned in section A and B of Article 3 of this law, and the balance shall be allocated to the remaining undertakings. Note . Sickness benefits for a period of sickness of an insured which is not paid by the employer, shall be borne by Organization. Article 30. Employers are bound to deduct from all the money and benefits mentioned in section 5 of Article 2 of this law the specified insurance contribution and to pay same together with their own share of the contribution to the Organization. Note . The value of non-cash regularly paid benefits, such as foodstuffs, cloths and the like, shall be determined as a fixed amount in accordance with a regulation to be approved by the High Council upon the proposal of the Board of Directors; and insurance contribution shall be collected on the said value. Article 31. In the case of insured persons the whole or part of whose wages or earnings is secured through customers or clients, the approximate income of every class or profession must be determined as a fixed amount upon the proposal of the Board of Directors and approval of the High Council, and shall form the basis for collection of the insurance contribution. Article 32. In the case of insured persons who receive wage, the insurance contribution shall be calculated and collected on the basis of their total monthly earning. This insurance contribution shall in no case be less than the insurance contribution applicable to the minimum wage of ordinary laborers. Article 33. The insurance contribution of apprentices shall be paid in proportion to their wages or salaries and such contribution shall in no case be less than the rate applicable to the lowest wage or salary. In the event that the wage or salary of the apprentice is less than the lowest wage, the payment of the difference in the apprentice’s share of said insurance contribution shall be borne by the employer. Article 34. Where the insured works for two or more employers, each one of them is bound to deduct from his wage or salary the insurance contribution in proportion to the wage or salary he is paying, and to pay the same to the Organization together with his own share of the contribution. Article 35. The Organization may, where necessary and with the approval of the High Council of the Organization, classify the wages or salaries of insured persons ngaged in certain occupations and collect the insurance contribution on the basis of a fixed income and calculate and pay cash benefits on the same basis. Article 36. The employer is responsible for the payment of his share of the contribution and that of the insured to the Organization and is bound, at the time of payment of wages or salaries and benefits, to deduct the share of the insured and pay it to Organization adding his own share thereto. Where the employer fails to deduct the insureds share of the contribution, he shall be personally responsible for its payment. Delay in payment or non-payment of insurance contribution by the employer shall
not absolve the Organization of its responsibility and undertaking toward the insured. Note . Insured persons, the whole or part of whose earnings is derived in the manner set out in Article 31 of this law, are bound to pay their share of the insurance contribution to the employer for payment to the Organization, but in any event the employer shall be responsible for the payment of the insurance contribution.
Article 37. Upon the transfer and assignment of institutions and places of work governed by this law, or the profits thereof, whether the transfer is absolute, conditional, as a mortgage by means of a deed, a legal settlement or lease and whether the transfer is by means of an official or ordinary deed, the transferee is required to demand from the transferor a certificate from the Organization to the effect that there is no outstanding debt on account of insurance contribution and related charge Registrars of legal instruments are required at the time of the drawing up the documents, to enquire of the Organization concerning the debts of the transferor. In the event that the Organization does reply to the Registrar of Legal Instruments within 15 days of receipt of the enquiry form at the office of the Organization, the registrar of legal instrument may register the transaction without clearance being obtained. Where the Organization gives notice that the transferor has a debt, the transaction may be concluded upon payment of the debt, which payment, however, shall not deprive the transferor of his right to protest the assessment of the Organization and secure a review of the amount of insurance contribution.
Where the transaction is concluded without presentation of said certificate, the transferor and the transferee shall have joint and several responsibilities for payment of the claims of the Organization. Ministries, Governmental organizations and companies as well as municipalities, Guilds and other authorities concerned are bound to demand a certificate of settlement of account for insurance contribution from applicants for renewal of licenses for business or any other activity. In any event
renewal of a business license depends upon producing a certificate of settlement of account for insurance contribution. Note. The Organization is bound to issue a certificate of settlement of accounts and deliver same to the applicant no later than one month after registration of an application. Article 38. Where the performance of work is entrusted to real persons or legal entities on a contract basis, the employer should, in making the contract, bind the contractor to insure his workers as well as the workers of subcontractors with the Organization and to pay the whole of the insurance contribution as set out in Article 28 of this law. Payment of 5% of the total value of the contractor’s work by the employer shall be subject to presentation of a certificate of settlement of accounts from the Organization. In the case of contractors who submit in due time a list of wages and insurance contributions of their employees to the Organization, and pay accordingly; an amount equivalent to the insurance contributions paid shall be released from said amount (5% withheld) at the request of the Organization. If the employer pays the last installment
to the contractor without asking for the certificate of settlement of account from the Organization, he shall be responsible for the payment of the specified insurance contribution and related penalties. The employer then has the right to demand and recover from the contractor the sums paid to the Organization on this account.
All Ministries, Government organizations, and companies, municipalities, the Chamber of Guildes, non-government institutions and charitable and public welfare institutions are subject to this Article. Note. All employers subject to this Article and Article 29 of the former Social Insurance Law are bound to present the list of those contractors and consultant engineers who, at least one year after the termination, suspension or cancellation of this contract have failed to pay their employee’s contributions and present the certificate of setllement of
account from the Organization. In this case the debt due shall be paid by the employer from the with held amount (5%).
The amount of contribution after being finalized according to the law and the decision of the Assessment Review Boards subject to Article 44, and the second notification to the contractors, shall be paid to the Organization by contractors the debt due within 20 days.
The method of implomentation will be according to the regulations which will be prepared by the Organization and ratified by the Council of Ministers. Article 39. The employer is required to pay each month’s insurance contribution to the organization no later than the end of the following month. He shall also submit to the Organization a list of wages or salaries of the insured persons. Such list shall be prepared in accordance with the regulations on the manner of preparing and transmitting payroll lists as approved by the High Council of the Organization. The Organization shall at the latest within six months of the date of receiving the payroll list investigate the records and documents of the employer and if it finds errors, discrepancies or inconsistencies, will proceed according to Article 100 of this law and collect the balance due. If the employer refrains from producing any documents, the Organization will arbitrarily determine the balance due on the insurance contribution and demand and collect same. Article 40. Where an employer fails to transmit the payroll list mentioned in Article 39 of this law, the Organization may arbitrarily determine the insurance contribution and demand and collect the same from the employer. Article 41. Where the type of work requires, the Organization may on proposal of the Board of Directors and with the approval of the High Council of the organization, determine the proportion which wages bear to the work performed, and demand and collect the insurance contribution based on such proportion.
Article 42. If the employer should object to the amount fixed by the organization for the insurance contribution and penalties for delayed payments, he may, within 30 days of the date of notification, submit his protest to the Organization in writing. The Organization is required within thirty days of the date of receipt thereof to present same to a Board
of First Instance for Assessing Claims.
Where no protest is received from the employer during the period specified, the assessment of the Organization shall be final and the amount of insurance contribution and the penalties as determined will be collected in accordance with the Article 50 of this law. Article 43. Boards of First Instance for assessing claims of the organization shall be composed of the following persons: - A representative of the Ministry of Social welfare who shall be the Chairman of the Board.
- One person representing the employer, selected by the Chamber of Commerce, Industry and Mines of Iran in the case of businessmen and industrialists, a representative from the pertinent guild introduced by the chamber of Guilds in the case of guild members, professionals or self-employed persons.
- One person selected by the High Council of Social Security.
- The representative of the workers selected by the Minister of Social welfare in the case of workers covered by the Social Security Law.
Decisions of the Boards of First Instance for Assessing Claims are final and binding and in cases where the amount demanded by the organization for insurance contribution and penalty is One million and five hundred thousand Rails or less, or where no protest is made within the specified time. Should the amount claimed be more than one million and five hundred Rails, the employer and the Organization have the right to appeal within twenty days from the date of receipt of actual or legal notification
of the decision of the Board of First Instance for Assessing Claims.
Article 44. The Assessment Review Boards shall be convened in Tehran and be composed of the following persons: - A representative of the Ministry of Social welfare who shall be the Chairman.
- One of the judges of the Ministry of Justice selected by the Ministry of Justice.
- One person selected by the High Council of social security.
- A representative of the Organization selected by the chairman of the Board of Directors and Managing Director.
- One person representing the employer selected by the Chamber of Commerce, Industry and Mines of Iran in the case of businessmen and industrialists, or one representative of the Chamber of Guilds in the case of guild members, professionals and the self-employed. Decisions of a Review Board are final and binding.
Note . Boards of First Instance and Review Boards shall notify the employer of the hearing dates. Employers shall be free to attend hearing for purpose of giving explanations. Article 45. The procedure for lodging a protest and petition for review, convening meetings of the Boards, method of investigation, issuance of decisions and notification shall be in accordance with regulations to be approved by the High Council of the Organization on the proposal of the Board of Directors. Article 46. The Organization may at the request of an employer divide his debts into 36 monthly installments; in such case the employer shall pay to the Organization interest equivalent to 12% per annum on the outstanding balance due. In case the employer does not pay any of the installments on the specified date, the remaining installments shall immediately become due and payable and shall be collected according to Article 50 of this law. Note . In cases where, due to a financial crisis which causes a halt in operations at the place of work, payment of the insurance contribution on the date due is not possible, the employer may, at the time specified in this Article, ask for a reduction in the amount of damages and delay penalties. In such case Boards of First Instance and Assessment Review Boards shall examine the request of the employer and issue the appropriate decision. In any case, the amount of damages and delay
penalty shall not be less than 12% per annum on the delayed insurance contribution. Article 47. When visited by an inspector from the Organization, employers are required to make available to him the list of wages, salaries and other benefits of insured persons, as well as the books of account and necessary documents. Inspectors of the Organization may make copies or photocopies of all or any part of the said books of account and documents and may refer to any of the heads, staff and workers at the place of work and to authorities concerned in order to secure necessary information.
Inspectors of the Organization have the right to inspect the places of work covered by this law and have the same powers and responsibilities set out in Article 52 and 53 and of the Labor Law . The result of the inspection shall be reported by the Organization to the employer at the most within one month. Article 48. From the date that the Organization, with due regard to Article 7 of this law, announces that a new group is subject to insurance coverage, it shall be bound to carry out its legal obligations to the insured persons in accordance with the regulations; and employers are bound to pay the insurance contribution to the Organization as of the date said group has been announced as being subject to insurance coverage. Note . In cases where the payroll list is not sent on the specified date by the employer, the Organization may calculate the wage or salary of insured persons on the basis provided in Article 40 of this law for calculating the insurance contribution and consider the same as the basis for payment of cash benefits. In cases where calculations of the wage or salary of the insured in the above manner is not possible, the Organization may pay the cash benefits, on account, on the basis of thelowest wage or salary. Article 49. The claims of the Organization arising out of the execution of this law shall be considered as preferred claims. Article 50. The claims of the Organization for insurance contribution, delay penalties and cash fines, which arise from the implementation of this law, or former social insurance laws and the Rural Social Insurance Law, as well as the expenses incurred according to Article 65 and 89 and the damages mentioned in Article 99 and 100 of this law shall be considered as claims supported by binding documents, and according to the law concerning the Execution of the Contents of official Documentsmay be collected by the enforcement agents of the Organization.
The administrative regulations of this Article shall be prepared by the Organization at the latest within six month of the date of enactment of this law, and shall become effective upon the approval of the Ministry of Social Welfare and Ministry of Justice. Until the approval of the said regulations, the provisions of this Article will be implemented by the
enforcement agents for judgements of the courts of the Ministry of Justice in accordance with the regulations under Article 35 of the Social Insurance Law.
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