Iran Launches Performance-Based Payroll Pilot for Educators and Public Servants
In a significant move to reform public sector compensation, Iran has approved the executive bylaw for a new performance-based budgeting and payroll system. This initiative, a key part of the nation’s Seventh Development Plan, is set to begin a pilot phase in the education, healthcare, higher education, and technical training sectors.
The decision, backed by a special directive from the President, marks a major step toward enhancing administrative efficiency, promoting justice, and increasing productivity within the government’s payment structures.
Key Details of the New Payment System
The pilot program was finalized in a high-level meeting attended by the Head of the Administrative and Recruitment Organization, senior officials from the Planning and Budget Organization, the National Treasury, the Court of Accounts, and the Presidential Institution.
Alaeddin Rafiezadeh, Vice President and Head of the Administrative and Recruitment Organization, emphasized that the primary goal is to successfully implement the model in these key sectors before rolling it out across all government executive bodies.
The core pillars of the new system include:
- Calculating the true cost of services: Precisely determining the expenses involved in providing public services.
- Defining services and their identifiers: Categorizing and identifying services to enable accurate performance evaluation.
- Implementing performance-based pay: Replacing traditional salary scales with a new system that directly links compensation to employee performance and output.
A Special Task Force to Guide Implementation
A dedicated “Performance-Based Payment System Task Force” has been established by presidential order to oversee the rollout. Chaired by Mohammad Jafar Ghaempanah, the Vice President for Executive Affairs, and with Mr. Rafiezadeh serving as secretary, the group includes the heads of the Planning and Budget Organization, the National Treasury, the Court of Accounts, and the head of the Parliament’s Plan and Budget Commission.
Rafiezadeh assured that specialized reviews are being conducted with high precision to minimize potential flaws in the plan, with results to be finalized in the task force’s next meeting.
A Move Toward Greater Justice and Efficiency
This transformative initiative aligns with the national emphasis on enhancing justice and productivity within the public sector payroll system. It promises a substantial shift in how teachers and government employees are compensated, directly rewarding better performance and higher quality service delivery.
By tying budgets and salaries to measurable outcomes, the reform aims to not only increase the efficiency of government agencies but also to boost employee motivation.
What Comes Next?
The pilot implementation in education and other key sectors is scheduled to begin shortly. Educators and public servants can anticipate positive changes to the payroll system, designed to be more aligned with their individual contributions and performance. For further updates, officials have advised following the official announcements from the Administrative and Recruitment Organization and the Ministry of Education.