Title: Parliament’s Strategic Agenda: Performance-Based Pay and Pension Reforms Take Center Stage
A New Direction for Public Sector Pay
In a significant development, Aladdin Rafiezadeh, the head of Iran’s Administrative and Employment Organization, has detailed the government’s approach to implementing key articles of the Seventh Development Plan. In a televised interview, he emphasized that the administration is actively working to execute the provisions of the plan, particularly those concerning employee compensation and pensioner welfare, while remaining mindful of national budgetary constraints.
Operational Budgeting and Performance-Linked Salaries
Rafiezadeh, who also serves as a Vice President, confirmed that the government’s strategy aligns with the President’s repeated emphasis on shifting towards a performance-based payment system for civil servants. He announced a concrete step in this direction, revealing that the executive by-law for Article 18 of the Seventh Plan, which deals with operational budgeting and performance-based pay, was formally approved by the cabinet last week.
“Following its official notification,” he stated, “we will work to connect a portion of non-mandatory benefits to the annual salary coefficient. This will allow for salary adjustments to be implemented at the beginning of the [Iranian] year.”
Securing Pensioner Welfare
Addressing a critical concern for retirees, the Vice President provided clarifying details on pension calculations. He assured that welfare benefits included in a retiree’s pay slip are not subject to deductions. This measure ensures that upon retirement, the non-mandatory portion of an individual’s salary—which includes welfare benefits and overtime pay and can constitute 40 to 50 percent of their total income—is not reduced.
“This policy prevents a sudden halving of a person’s income upon retirement and represents a major contribution to the welfare of our retirees,” Rafiezadeh concluded.