EghtesadOnline: Salary level has always been a sticking point among job seekers and employers. Many factors play a role in determining salaries at the organizational level of companies. However, it seems that in the Iranian job market, experience and university degrees play a more significant role on the level of salaries.
“As per regulations in the Iranian job market, educational degrees and job experience are more important than other factors in determining salary rates for different positions. This is more noticeable in state companies compared to private ones,” said Asieh Hatami, the managing director of IranTalent, in an interview with the Financial Tribune.
IranTalent is a leading Iranian online job site launched in 2003. To figure out the common pay rates in the Iranian job markets for only full-time employees in the last fiscal year (March 2017-18), the job site conducted a survey of 130,000 participants from across Iran.
The survey was conducted during two months to February 19, 2018, according to Financial Tribune.
Categorizing job positions into three organizational categories of top managers, middle managers and skilled workers (non-managerial), the report revealed that skilled workers in Tehran receive a monthly salary of 25 million rials ($270) on average. The rate is 36 million rials ($390) and 60 million rials ($650) for middle and top managers respectively.
Work Experience Factor
The survey indicates that skilled workers in Tehran with 0-3 years of working experience receive 20 million rials ($216) on average per month while skilled workers with 3-7 years of experience get 25 million rials ($270). Those with 7-15 years of experience receive 30 million rials ($325) on average and those with over 15 years of experience get 34 million rials ($368).
The monthly average for middle managers with 0-3 years of experience was 22 million rials ($238), while it was 32 million rials ($346), 40 million rials ($433) and 48 million rials ($520) for those with 3-7, 7-15 and above 15 years of work experience respectively.
This is while top managers with 3-7 years of experience are paid 43 million rials ($465) monthly on average. Those with 7-15 years of experience receive 63 million rials ($682) and those who have more than 15 years of experience get 78 million rials ($845).
Level of Degree Factor
Employees with master’s degrees often received better salaries compared to those with bachelor’s degrees. The gap is, however, larger in state companies compared with private firms.
In fact, state companies tend to value university degrees for skilled workers and senior managers more than private companies, while private companies value degrees for middle managers.
On average, skilled workers with a master’s degree at private companies in Tehran are paid 8% higher than those with bachelor’s degrees. The gap is 15% and 20% for middle managers and senior managers in private companies respectively.
In public companies, top managers with master’s degrees receive 31% higher salaries compared to those with bachelor’s degrees. This is while middle managers and skilled workers with master’s degrees at state companies get 11% and 13% higher respectively.
Hatami believes the dominant trend of employers emphasizing the issues of experience and degrees is gradually changing and employers are now considering skills of job seekers more seriously than before. This is more evident in private companies.
In other words, people with better skills are now more valued in private companies compared to those who have more experience or higher educational degrees.
“Of course, this is not something that is applied 100% in the job market now and the change is gradual but happening. Hiring applicants with necessary skills, regardless of experience or degree, is more vital for technical job positions. There are even cases in which young talented individuals are preferred to those with more experience and better degrees,” Hatami said.
Regional, Locality Factor
The analysis of salaries in Tehran vis-a-vis those in other Iranian provinces shows salaries in the three provinces of Bushehr, Hormozgan and Khuzestan tend to be higher than in Tehran.
Salaries in Bushehr Province for management levels are 33% higher than those in Tehran, while for non-management levels they are 42% higher. As for Hormozgan Province, managerial salaries are 4% and non-managerial salaries 15% higher. Positions at management levels in Khuzestan Province receive similar salaries compared to those in the capital, but those at non-management levels receive 4% more.
The survey also shows the highest monthly average salary belonged to senior managers in pharmaceutical industry with 73 million rials ($791), followed by senior management in data analysis/market analysis/economic analysis with 71 million rials ($769), and senior managers in accounting/auditing/finance with 70 million rials ($758).
The lowest average belonged to warehouse skilled workers with 17 million rials ($184), followed by teaching and training skilled workers at institutions and schools with 17 million rials ($184), and communications/public relations skilled workers with 2.1 million rials ($22).
Native employees in Tehran receive 12% higher salaries compared to non-native ones. This is while in other provinces, native employees are paid 13% less compared to non-natives.
The highest average salary among skilled workers in Tehran belongs to those in power industry, diplomatic institutions, embassies, commerce chambers, United Nations office in Tehran, investment companies and financial institutions.
Company Type, Size Factor
Another finding of the survey is that salaries paid in international companies in Tehran are noticeably higher compared to those in domestic firms.
What’s more, state-owned companies tend to pay better compared to private ones on average for all positions at the three organizational levels.
On average, skilled workers in international companies receive a monthly salary of 34 million rials ($368), while the rate is 28 million rials ($303) and 22 million rials ($238) for skilled workers in state and private companies respectively.
As for middle managers, the average monthly salary is 48 million rials ($520), 40 million rials ($433) and 35 million rials ($379) in international, state and private companies located in the capital respectively.
Top managers working in Tehran received 109 million rials ($1,181) in international companies, noticeably higher compared to those working in state and private companies that pay 62 million rials ($671) and 60 million rials ($650) respectively.
Not surprisingly, large enterprises mostly offer bigger salaries compared to small companies. Senior managers in large enterprises receive 29% higher salaries compared to those in small ones. The gap is 23% and 25% for middle managers and skilled workers respectively.
Finally, the survey shows generally men receive better salaries compared to women. Male senior managers in Tehran get 47% more than female senior managers, while the salary gap is 23% and 24% for middle managers and skilled workers respectively.
Women have a more noticeable share in the workforce of private companies located in Tehran compared to that of state companies. In addition, the women/men ratio at international firms is higher compared to domestic ones.
In fact, women employees have a 25% share in state companies, while their shares are 34% and 38% in private and international firms respectively.