Title: Landmark Pension Reform: Government Implements Significant Increase and Back-Pay for Retirees
Significant Increase Enacted
In a major move to support retirees, the Iranian government has implemented a substantial pension increase of over 30% for many, effective from the beginning of the current Iranian calendar year in March. This policy, executed as part of the second phase of the “rights proportionality” plan, is designed to directly address the income gap between pensioners and active employees. The government and the Plan and Budget Organization have confirmed that the necessary funding for this initiative has been secured from sustainable sources.
Back-Payments Now Being Processed
A key component of this reform is the payment of retroactive sums covering the months from March through September. Officials have confirmed that the disbursement of these back-payments is currently underway for all pension funds. Authorities have emphasized that the settlement of all arrears is scheduled for completion by mid-November, ensuring retirees receive the full benefits they are owed in a timely manner.
Breakdown by Pension Fund
The implementation of this increase varies across the nation’s main pension funds, each reporting significant gains for their members:
- Social Security Organization: A 20% increase in the base pension has raised the minimum monthly pension to 11.75 million tomans.
- Civil Servants Retirement Fund: Through a combination of a 20% base increase and the second phase of proportionality adjustment, pensions have risen between 23% and 30%. The average pension in this fund has now reached 15 million tomans, with a new minimum of 12 million tomans.
- Armed Forces Pension Fund: Retirees with 30 years of service have seen their minimum pension increase to 14.04 million tomans.
Commitment to Timely Payments and Future Plans
The government spokesperson has assured that there will be no delay in the payment of November pensions. Looking ahead, officials have announced that the draft budget for the next Iranian year includes provisions for a new increase aimed at achieving full pension harmonization and expanding insurance services for retirees.
This historic adjustment marks a significant step in improving the livelihood of pensioners, reflecting the government’s ongoing focus on social welfare and economic justice.