Major Pension Reform: 90% Increase Rollout Begins, Benefiting Millions
In a significant social welfare development, Iran’s Social Security Organization has initiated a major pension adjustment plan. The multi-year program, which began implementation in the second month of the current Iranian calendar year (Aban 1403), has already extended its benefits to over 4.7 million retirees.
A Three-Year Implementation Plan
The reform is structured to be executed over a three-year timeline, as mandated by law. The core objective is to compensate for 90% of the gap between pension values and the current minimum wage. The increase will be applied in graduated phases: a 40% boost in the first year, followed by a 30% increase in the second year, culminating in the full 90% adjustment by the conclusion of the third year.
Tailored Increases and Fiscal Commitment
Crucially, the adjustment is not a flat, one-size-fits-all sum. The specific increase for each pensioner is calculated individually based on their existing pension amount and in strict accordance with established insurance computation principles. This ensures the process is equitable and tailored to individual circumstances.
The government’s commitment to this reform is underscored by its substantial fiscal undertaking. For the current year alone, the implementation of this pension adjustment plan carries a monthly cost of approximately 5,500 billion tomans for the Social Security Organization, highlighting the scale of this beneficial economic policy.
