Title: Landmark Pension Reform Approved, Paving Way for Substantial Retirement Benefit Increase
In a significant move to bolster the long-term financial security of public sector employees, the Iranian government has approved a pivotal legislative bill that reforms the pension calculation system. The announcement was made by the Minister of Cooperatives, Labour, and Social Welfare, Ahmad Meydari.
A Structural Shift for Future Stability
The newly approved bill introduces a key structural change by extending pension fund deductions to cover certain welfare payments and overtime pay for government employees. Minister Meydari emphasized that this measure is fundamentally designed to prevent a sharp decline in workers’ income upon retirement.
“This structural evolution will ensure that in the coming years, the pensions of state retirees will not face a severe drop,” the Minister stated. He further elaborated that this reform will inject greater transparency and sustainability into the public sector’s payment system.
Aligning Pensions with Actual Earnings
Central to the reform is the goal of creating a more direct and equitable link between an employee’s career earnings and their retirement benefits. The Minister explained that the resolution paves the way for calibrating pension benefits to be more proportionate with the actual level of payments received during an individual’s employment period.
Direct Impact: A 30-40% Pension Boost
The most immediate outcome of this legislative change will be a substantial increase in retirement pensions for current government employees. Minister Meydari confirmed that with the implementation of this bill, the retirement pensions of current state workers are projected to rise by approximately 30 to 40 percent. This adjustment aims to provide a more secure and dignified post-career life for public servants, reflecting the government’s focus on social welfare and economic justice.