MPs Cap Executive Pay at $3,700 Per Month

Members of the Iranian Parliament killed their newly-passed bill on executive salaries on Saturday and once again referred their original proposal to the Guardians Council.

On Wednesday, lawmakers had approved a bill allowing for a 60% salary hike for top executives and experts working in underprivileged and border areas.

The motion provoked an uproar, at the center of which was former parliamentarian Ahmad Tavakkoli. He slammed the move in a statement by saying, “You did a great job by rubbing salt into the wound of people”.

Referring to the media frenzy of June 2016 over “astronomical salaries”, Tavakkoli said Iranians hate the rent-seeking and insatiable desire of officials.

The drama began when the paychecks of top managers at banks and other companies were leaked on the social media, showing their salaries to be dozens of times the average monthly income of a white-collar worker.

Tavakkoli compared the proposed monthly salary cap of 240 million rials ($6,347) with the minimum salary of workers who receive 8,120,000 rials ($214.7) per month and slammed its “unjust” nature.

“The words ‘executive’ and ‘up to 60% rise’ were added by the Guardians Council to the parliament’s original proposal,” said Parliament Speaker Ali Larijani on Saturday.

“According to Article 35 of the Law on Management of State Services of 2007, a CEO’s pay should not be more than twice that of the worker. The members of Majlis Planning and Budget Commission wanted to place a cap on such salaries. This does not mean government executives should be paid this much,” the Persian daily Jahan-e Sanat quoted him as saying.

Referring to the maximum monthly pay of 140 million rials ($3,702) to executives voted for by the parliament, Larijani noted that according to the preliminary legislation, which still needs the final approval of the Guardians Council, executive salaries should range between 100 million and 140 million rials ($2,644-3,702). It also suggests that the hike in salaries should not exceed 30%.

The parliament’s proposal will be referred to the Expediency Council, if the Guardians Council rejects it for the second time.

The move is part of the parliament’s review of the sixth five-year development plan (2017-22).