Title: Government Announces Phased Subsidy Increase and Targeted Redistribution for September
In a significant move to enhance social support, the Iranian government has initiated the fourth phase of its electronic coupon subsidy scheme, resulting in increased payments for a majority of households this month.
Expanded Subsidy Payments for Lower-Income Deciles
The first step of this new phase has commenced, with an additional 500,000 Tomans per person deposited for recipients in the first three income deciles. Subsequent steps, scheduled for completion by the end of the Iranian month of Shahrivar (late September), will see payments of 350,000 Tomans per person for the fourth and fifth, followed by the sixth and seventh income deciles.
September Cash Subsidy Schedule
Furthermore, the standard monthly cash subsidy for September will be deposited in two stages to the accounts of eligible household heads.
- Recipients in the first three deciles will receive a 400,000 Tomans per person payment on September 16th. Combined with the new coupon scheme payment, this brings their total September subsidy to 900,000 Tomans per person.
- Households in the fourth to ninth deciles will receive their 300,000 Tomans per person cash subsidy on September 22nd. This means households in deciles four to seven will receive a combined total of 650,000 Tomans, while those in the eighth and ninth will receive 300,000 Tomans. The tenth, highest-income decile remains excluded from all subsidy programs.
Ongoing Review and Reassessment Process
The rollout follows a comprehensive nationwide reassessment of household eligibility. This process has led to the automatic reinstatement of subsidies for some families who had previously been excluded, without the need for a formal appeal, as new data placed them in a qualifying income bracket.
Concurrently, the process of phasing out subsidies for the highest earners has been completed. This action, based on the provisions of the national budget law for the current Iranian year (1404), is designed to reallocate resources towards providing enhanced support for lower-income groups. The removal of subsidies was conducted using transparent criteria and a dedicated system was established for households to file appeals if necessary.
This phased and targeted approach underscores the government’s commitment to increasing the efficiency and fairness of its social welfare system, ensuring support reaches those who need it most.