Iran’s 2025 Budget: A 20% Pay Rise for Employees and Retirees Announced
TEHRAN – The Iranian government has officially outlined the salary adjustment framework for the upcoming fiscal year 1405 (2025), centering on a projected 20% increase in the base pay for state employees and retirees. The directive, which guides the preparation of the national budget bill, establishes clear financial controls while prioritizing the welfare of the public sector workforce.
Key Salary Adjustments for 2025
At the heart of the new budgetary guidelines is a significant provision for employee compensation. According to the directive, all executive bodies, including those with specific statutory regulations, are to calculate salary increases based on a 20% growth rate applied to the final pay scale of the current year, 1404.
The exact final coefficient for this raise is subject to official approval by the Council of Ministers, ensuring a structured and regulated process. This measure is designed to align public sector incomes with national economic planning.
Strict Controls on Hiring and Benefits
The budget directive reinforces fiscal discipline across all government entities. A key stipulation mandates that any new hiring, including contractual personnel, requires prior financial approval from the relevant administrative organization before an employment permit can be issued.
Furthermore, the budget for several ancillary benefits will be maintained at their 1404 levels. These include performance-based bonuses, one-month salary bonuses, domestic and international mission allowances, and direct and indirect welfare assistance for employees. The annual Noruz (New Year) bonus will be budgeted in accordance with existing laws, with its final amount also awaiting cabinet approval.
Comprehensive Application Across State Institutions
The pay raise directive applies uniformly to a broad spectrum of state-owned enterprises and major national institutions. This includes entities such as the National Iranian Oil Company, the Central Bank, and the Islamic Republic of Iran Broadcasting (IRIB), among others. All are required to forecast their personnel costs strictly in line with the 20% increase guideline, with any additional raises beyond this ceiling deemed impermissible.
To ensure accuracy and transparency, all personnel cost calculations for the 1405 budget must be based exclusively on data from the country’s integrated administrative system (SINA), providing a centralized and verifiable method for budget allocation.
This structured approach to the 2025 budget underscores the government’s commitment to a balanced economic policy that supports its employees while maintaining rigorous financial oversight.