Title: Landmark Agreement Paves Way for Significant Pension Increase, Up to 49% for Lowest Earners
In a significant political development, Iranian parliamentary authorities have announced a major breakthrough in securing a substantial pension increase for retirees, particularly those from the national steel sector, following intensive negotiations.
A New Consensus Forged
The path to this agreement was detailed by Shahrokh Ramin, a Member of Parliament and Chairman of the Legal Supervision Committee of the Parliament’s Social Commission. He explained that initial disagreements between the management of the Steel Industry Pension Fund and its beneficiaries were rooted in financial resource constraints. Through a series of six dedicated sessions in the Social Commission, a crucial consensus was built.
“The first step we took was for everyone to understand that the fund’s management and its stakeholders are on the same page,” Ramin stated. “The core issue was the lack of financial resources to meet the expectations of workers and pensioners.”
Aligning with National Standards
A pivotal meeting on August 8, 2024, addressed a critical question: should the Steel Industry Pension Fund operate under private sector rules, its beneficiaries would be entitled to annual raises aligned with common practices in other worker pension funds. This highlighted a disparity, as a government-proposed budget for the current year had initially allocated only a 20% salary increase.
Ramin announced the successful outcome of the negotiations: “In parliament, through an agreement with the Ministry of Welfare and representatives of employers and workers, we arrived at a formula of a 45 to 49 percent increase.” This new formula ensures the lowest-earning pensioners receive the highest raise of 45-49%, with others seeing a 39% increase, effectively bringing the steel sector pensioners in line with national standards.
Renewed Commitment Under New Management
Following a recent management change in the pension funds, a follow-up meeting was held on November 4, 2024, to reaffirm these agreements with the new leadership. “We are hopeful that through joint efforts, we can turn this new discourse and understanding between the pensioners and the fund’s management into law,” Ramin added, expressing optimism for a formal and lasting resolution.
Parliamentary Support for Workers’ Rights
Echoing this commitment, Reza Hajipour, MP for Amol, met with labor representatives and unions in Mazandaran province, firmly stating that the demands of workers and pensioners are legitimate and lawful. He issued a strong declaration, asserting that any official who neglects these demands or attempts to silence this segment of society would be “betraying the country.”
Hajipour emphasized a collaborative approach, stating, “Your words are our words in parliament. We will strive to use your expert opinions, which reflect the real problems of this group, to amend and pass laws in favor of workers and pensioners.” He highlighted the importance of a tripartite interaction between the government, parliament, and labor organizations to tackle inflation, improve livelihoods, and enhance job security.
Addressing Livelihood Concerns
Nasrollah Daryabeigi, the Executive Secretary of the Mazandaran Workers’ House, provided context to the urgency of these raises. He pointed out that over 75% of wage earners are minimum-wage recipients and that analyses suggest a living wage should be around 24 million tomans. He contrasted this with the reality that many pensioners live on just 10 million tomans a month, a significant portion of which is consumed by rent, leaving them in dire straits for essential needs like food and medicine.
“This method of treating those who have served the country’s development for years is beneath the dignity of the system,” Daryabeigi stated. “Paying such a wage is, in fact, a ‘line of gradual death,’ not a poverty line.” He called upon the government and parliament for a comprehensive solution, including equitable pay raises, essential commodity baskets, free healthcare, and job security.
