Title: Landmark Reform: Government Proposes Major Pension Enhancement for Retirees and Employees
In a significant move aimed at bolstering the financial security of retirees and state employees, senior government officials have announced the details of a proposed reform that could substantially increase pension benefits.
Key Reform Under Review
Alaeddin Rafiezadeh, the Head of Iran’s Administrative and Employment Organization, outlined the initiative in a recent televised address. The central proposal involves exempting employee benefits and overtime pay from pension-related deductions. This technical change, he explained, is crucial for preventing a sharp decline in income for individuals upon retirement.
Addressing the Core Issue
Mr. Rafiezadeh clarified that an employee’s total income is composed of two main parts: the base salary, which is officially documented, and additional payments encompassing benefits and overtime. This second component can constitute a substantial 40 to 50 percent of an employee’s total earnings. Under the current system, when these additional payments are subject to pension deductions, it can lead to a significantly lower calculated pension. The proposed reform seeks to rectify this, ensuring that retirement income more accurately reflects an employee’s career earnings.
A Step Toward Greater Financial Security
The official confirmed that the proposal is currently under review by the government. If it receives final approval, its implementation will be pursued as an effective measure to improve the financial standing of both current employees and pensioners. This policy is projected to enhance the purchasing power and overall economic welfare of millions of citizens, marking a positive development in the government’s ongoing social support programs.