Title: Landmark Pension Adjustment: New Mechanism Ensures Sustained Support for Retirees
In a significant move to bolster the welfare of the nation’s retirees, a structured and legally-backed mechanism for pension increases has been clarified, underscoring a continued commitment to social welfare policies.
A Predictable and Law-Based System
Contrary to public perception, the annual increase in pensions is not subject to the fluctuating annual budget law. Instead, it is systematically determined by the Supreme Labor Council and ratified by the cabinet of ministers. This established procedure has been the standard in previous years and is expected to continue into the next year, providing a stable and predictable framework for pension adjustments.
Focus on Livelihood and Social Welfare
This process plays a vital role in determining the standard of living and well-being for retirees, holding significant importance in the country’s social policy planning. In recent years, pension increases have fluctuated between 25% and 45%. Notably, those receiving the minimum pension have typically experienced a higher percentage increase, while other pension tiers have seen an average growth of 25% to 45%. Expectations for the coming year point to a similar range of increases, with minimum-wage pensioners again poised to receive a larger share of the adjustment.
Implementation of Legal Harmonization
Mohammad Mohammadi, the Deputy of Insurance at the Social Security Organization, elaborated on the implementation of a legal harmonization plan. He emphasized that this plan, rooted in the country’s Seventh Development Plan, was executed for non-minimum-wage pensioners. A key component for the current year involved compensating for 90% of the gap between the current pension and the value at the time it was first granted. This adjustment was processed simultaneously with the payment of this month’s pension.
Mohammadi further detailed that by the year 2025, the ratio of the paid pension to that year’s minimum wage will reach 90% of the original ratio. For non-minimum-wage pensioners whose 2023 adjustment was less than 10% of the current year’s official minimum wage, the difference will be reconciled under a “2023 Purchasing Power Preservation” scheme, clearly itemized on their pension slips.
Special Provision for Minimum-Wage Pensioners
Addressing those who receive the minimum pension and are not covered by the harmonization law, the Deputy announced that through the coordination of the heads of the three branches of government and the Minister of Labor, a special mechanism was activated. A sum equivalent to 10% of the current year’s minimum wage, proportional to their insurance payment years, was distributed to these individuals under the “2023 Purchasing Power Preservation” initiative alongside their regular pension for the month.
