Iranian Government Proposes Landmark Pension Reform to Boost Retiree Livelihoods and National Efficiency
In a significant move to enhance social welfare and administrative efficiency, the Iranian government has announced a comprehensive proposal to reform the pension system for retired civil servants.
A Long-Awaited Legislative Update
Mr. Zabiḥollah Salmani, Deputy for Human Capital at the Administrative and Employment Organization, has detailed a new amendment to Article 106 of the Country’s Management and Civil Service Law. This legislative initiative, the first in eleven years, is centrally designed to adjust and harmonize the pensions of retirees with the current economic landscape.
“The proposed amendment to Article 106 of the Civil Service Management Law, which we have presented after 11 years, aims at the proportional adjustment of retirees’ salaries,” Salmani stated.
Addressing Key Economic and Administrative Challenges
Officials outlined that the reform tackles several critical issues simultaneously. A primary objective is to manage the “stickiness” of employees to government posts—a situation where workers are reluctant to retire due to a significant gap between the income of active employees and pensioners. By narrowing this gap, the government aims to create a more dynamic and rejuvenated workforce.
Furthermore, Salmani emphasized that the proposal is not only about securing the livelihood of retirees but also plays a vital role in creating new job opportunities for the youth, facilitating a natural generational transition within the public sector.
Integration with Broader National Development
This initiative is aligned with the broader objectives of Iran’s Seventh Development Plan. Salmani confirmed that the plan already includes provisions for adjusting retirees’ pensions to 90 percent of the income of active employees, a process which is being implemented gradually.
The need for this reform was also driven by a noticeable disparity between different pension funds and an imbalance within the national retirement fund, criteria which formed the basis for the government’s proposal.
Commitment to a Streamlined Government
The pension reform is part of a larger governmental agenda for administrative agility and structural reform. Salmani highlighted the legal mandate in the Seventh Development Plan to streamline and reduce human resources by 15 percent, a goal the administration is determined to achieve.
“We have implemented the Administrative Urgencies Program with the aim of reforming service delivery processes and monitoring the efficiency of the country’s administrative system,” he added, underscoring the comprehensive nature of the government’s modernization efforts.
A Call for National Support
Concluding his remarks, Deputy Salmani expressed a hopeful expectation for widespread support from all media outlets and the Islamic Consultative Assembly (Parliament) to back the pension adjustment plan, framing it as a crucial step for national progress and social justice.