Iranian Government Approves Landmark Pension Reform, Paving Way for Significant Retirement Benefit Increases
In a significant move to bolster the long-term financial security of its public sector workforce, the Iranian government has approved a new structural reform for the pension system. The initiative, announced by the Minister of Cooperation, Labour, and Social Welfare, Ahmad Meydari, is designed to create a more transparent and sustainable payment framework.
A Forward-Looking Reform
The central policy change involves applying pension deductions to a portion of government employees’ welfare benefits and overtime pay. Minister Meydari emphasized that this strategic decision is not a reduction in current pay but is fundamentally aimed at preventing a sharp decline in employees’ income after they retire.
Securing a Stable Future
“This structural evolution will ensure that in the coming years, the pensions of state retirees will not face a severe drop,” stated Minister Meydari. He further elaborated that the reform will lead to a pension system that is more closely aligned with the actual level of payments an employee receives during their career.
Direct Impact on Retirement Income
The most immediate outcome of this reform is a substantial projected increase in pension benefits for current government employees. According to the Minister, with the implementation of this measure, the retirement pensions of current state employees are expected to rise by approximately 30 to 40 percent, marking a major enhancement to future financial stability for retirees.