Title: Landmark Policy Shields Retirees’ Welfare Benefits from Deductions
In a significant development for public sector employees, a senior government official has detailed new measures aimed at streamlining the state payroll system and securing the financial well-being of retirees.
A New Approach to State Salaries
Alaeddin Rafiezadeh, the Head of the State Management and Planning Organization, elaborated on the government’s strategic direction during a televised interview. He emphasized that the current policy for employee compensation aligns with the President’s reiterated focus on transitioning towards a performance-based payment system.
This strategic shift, Rafiezadeh noted, is designed to create a more efficient and meritocratic structure for public administration.
Operational Budgeting Approved
In a concrete step towards this goal, the Vice President announced that the executive by-law for Article 18 of the Seventh Development Plan was approved by the government last week. This by-law, central to operational budgeting and performance-based pay, is set to be formally communicated to relevant bodies.
“Following its official issuance,” Rafiezadeh stated, “we will work to link a portion of non-mandatory benefits to the annual salary coefficient. This will allow for any resulting increases to be implemented at the beginning of the [Iranian] calendar year.”
Securing Retirement Incomes
Addressing a key concern for public servants, the official provided crucial clarity on pension calculations. He confirmed that welfare benefits listed on an employee’s pay slip will no longer be subject to deductions upon retirement.
This pivotal change ensures that the non-mandatory portion of an individual’s salary—which includes welfare benefits and can constitute 40 to 50 percent of their total income—will not be reduced when they retire. Consequently, a retiree’s pension will not experience a sudden, drastic cut, providing substantial support for their post-career livelihood.
This policy is framed as a major governmental effort to enhance the welfare of retirees and bring greater stability and predictability to the public sector compensation system.