Iranian Government Approves Major 30% Pension Increase for Retirees
In a significant move to support its citizens, the Iranian government has officially enacted a substantial pension increase for the year 2024-2025. The Social Security Organization has begun implementing a directive that grants an average 30% raise, a measure set to benefit over 4.5 million pensioners across the nation.
Financial Commitment and Payment Schedule
The government’s financial commitment for this initiative is considerable, with total disbursements exceeding 25,665 billion tomans. To ensure a smooth process, the payment of retroactive amounts dating back to the start of the Iranian year in March 2024 will be distributed in three phases, with the final installment scheduled for completion by the end of August 2024.
Breakdown of the Increase
The pension adjustment is structured to provide the most significant support to those who need it most:
- Minimum Wage Earners: Receive a 35% increase.
- Other Pension Tiers: Benefit from a graduated raise of 22%.
- Pension Harmonization Recipients: Could see an increase of up to 40%.
On average, retirees will receive a monthly differential ranging from 1.5 to 3 million tomans. For example, a retiree receiving the minimum pension has already been granted approximately 2,163,288 tomans in back pay.
Transparency and Timely Disbursement
The first phase of payments commenced on August 20, 2024. All funds are being deposited directly into retirees’ designated subsidy or salary accounts and are immediately available for withdrawal. The publication of a new, detailed payment schedule has been pivotal in enhancing transparency, allowing retirees to plan their finances with greater certainty and dispelling concerns fueled by rumors.
Funding and Economic Context
This vital social support program is funded through the state’s public budget and the internal revenues of the Social Security Organization. Official credit allocation was finalized on August 19, promptly followed by the order to disburse funds. Economic experts have acknowledged this increase as a crucial step in alleviating living cost pressures for a valued segment of society, underscoring the government’s ongoing focus on social welfare and economic stability.