Title: Government Approves 2026 Salary Adjustment for Retirees, Outlines Calculation Framework
In a move that solidifies its ongoing commitment to social welfare, the Iranian government has detailed the salary adjustment process for retired civil servants for the upcoming 1405 Persian calendar year (2026). The plan, outlined in the national budget directive, continues the policy trajectory of recent years, ensuring a structured increase in pension benefits.
A Dual-Track Approach to Pension Increases
The budget directive indicates that the government plans to apply a 20 percent salary increase coefficient for employees, a figure that also forms a foundational element in the pension calculation formula for retirees. However, the final amount for retired civil servants is determined through a more comprehensive mechanism that integrates this annual coefficient with a separate, ongoing “harmonization” plan. It is important to note that the calculation method for state retirees differs from that used for Social Security Organization pensioners.
Understanding the Calculation Mechanism
The pension adjustment for state retirees involves a multi-step process designed to align their incomes more closely with those of active employees in equivalent positions. The framework for the upcoming year is expected to follow the established procedure:
- Annual Increment: The calculation begins by applying the annual increase percentage (e.g., the planned 20%) to the retiree’s final salary from the previous year.
- Integration of Harmonization Plan: A key component is the continuation of the multi-year salary harmonization plan, mandated by the Seventh Development Plan. This policy aims to gradually raise state pensions to 90% of the salary of an active employee in a comparable role. The process involves calculating a specific harmonization figure based on previous adjustments and applying a corresponding percentage increase.
In simpler terms, a retiree’s new pension is determined by combining the base amount (last year’s pension plus the annual increment) with the calculated value from the harmonization plan’s next phase. This structured approach ensures a predictable and legally grounded enhancement of retiree benefits, reflecting the government’s focus on economic stability and social support.