Title: Fifth Phase of Iran’s Electronic Subsidy Scheme Set for Late Aban, Aims to Enhance Essential Goods Support
In a move to bolster economic stability for lower and middle-income families, the fifth phase of Iran’s Electronic Subsidy Coupon (Kala-Barg) scheme is scheduled for implementation in the final ten days of the Persian month of Aban (mid-November 2025). This initiative, confirmed by the Speaker of the Parliament and state officials, is part of the government’s ongoing strategy to refine subsidy allocation and focus on the provision of essential household goods.
Structured Cash Payments to Continue
According to the established schedule, cash subsidy payments for Aban will be distributed in two tranches. The first three income deciles will receive their payments on the 25th of Aban, while deciles four through nine will receive theirs on the 30th of Aban. The direct cash transfer amounts are set at 400,000 Tomans for lower-income deciles and 300,000 Tomans for middle-income groups.
Enhanced Support Through Combined Benefits
When combined with the purchasing credit from the Electronic Coupon, the total support for eligible households is significantly amplified. Low-income families are set to receive up to 900,000 Tomans in total value, while middle-income households will receive up to 650,000 Tomans.
Key Updates in the Fifth Phase
While the overall framework of the subsidy scheme remains consistent, authorities from the Plan and Budget Organization have announced targeted refinements. The method of subsidy payment and the list of eligible goods have been updated to better serve public needs. The government will continue to cover the price difference for selected goods, enabling families to purchase them at stable, subsidized rates.
The scheme will continue to cover the first seven income deciles. The product list has been revised to concentrate on high-consumption and essential items for Iranian households.
An Expanded Basket of Essential Goods
The fifth phase’s commodity basket builds upon previous offerings, which included staples such as rice, oil, pasta, dairy products, eggs, and chicken. The new phase enriches this selection with additional items like fish, shrimp, turkey, and quail meat. These goods will be available at designated stores at government-approved, subsidized prices, insulating family budgets from market fluctuations.
Credit Caps and Utilization Deadlines
The credit limits for households remain unchanged from the previous phase, as stated by the Ministry of Cooperatives, Labour, and Social Welfare. The first three deciles have a credit cap of 500,000 Tomans, while deciles four to seven have a cap of 350,000 Tomans. Households with unused credit from the fourth phase have until the end of Aban to utilize their remaining balance, after which any unused credit will expire.
Strategic Objectives of the Reforms
Officials have emphasized that the core objectives of the fifth phase are to ensure the supply of essential commodities, stabilize prices, and alleviate inflationary pressure on household consumption baskets. The Ministry of Cooperatives, Labour, and Social Welfare has expressed confidence that this hybrid model of direct cash transfers and electronic commodity coupons will effectively offset a portion of living expenses for lower-income families and mitigate the impact of market volatility on food prices.