Iran Announces Major Pension Overhaul to Align Retiree Benefits and Streamline Public Sector
In a significant move aimed at reforming the national pension system, a senior Iranian official has detailed a new government initiative designed to increase retiree benefits and modernize public sector administration.
Key Legislative Reform Unveiled
Zabihollah Salmani, Deputy for Human Capital at the country’s Administrative and Employment Organization, announced that after 11 years, the government has presented an amendment to Article 106 of the National Civil Service Management Law. The core objective of this proposal is the “proportional adjustment” of pensions, a long-awaited measure for the retiree community.
Addressing Systemic Challenges
Salmani explained that the proposed legislation tackles two primary issues. Firstly, it aims to control the reluctance of employees to retire—a phenomenon known as “employee stickiness”—which is partly driven by the significant income gap between active employees and retirees. Secondly, the reform addresses the noticeable disparity between beneficiaries of the Labor Law and the Civil Service Management Law, alongside imbalances within the pension fund itself.
Broader Socio-Economic Benefits
Beyond directly supporting retirees’ livelihoods, the official highlighted wider benefits. He stated that by facilitating timely retirements, the amendment will help create new job opportunities for the youth, contributing to national employment goals. This aligns with provisions in the country’s Seventh Development Plan, which has already envisioned a gradual pension adjustment equivalent to 90% of the income of active employees.
Commitment to a Leaner, More Effective Government
Salmani further emphasized the government’s commitment to streamlining its structure. He noted that a 15% reduction in the public sector workforce is a legal mandate under the Seventh Development Plan, a goal the administration is determined to fulfill. This effort is part of a broader “Administrative Urgencies Program” implemented to reform service delivery processes and enhance the efficiency of the national administrative system.
A Call for National Support
In conclusion, Deputy Salmani expressed the administration’s expectation for comprehensive support from all media outlets and the Islamic Consultative Assembly (Parliament) to ensure the successful implementation of this crucial pension adjustment initiative.