Major Pension Reform: Government Announces Significant Increases for Retirees
In a significant move to bolster social welfare, the Iranian government has officially enacted a substantial increase in pensions for retirees covered by the Social Security Organization. The decree, issued by First Vice President Mohammad Reza Aref to the Ministry of Cooperation, Labour, and Social Welfare, outlines a tiered increase structure designed to provide targeted support.
Key Provisions of the Increase
The newly approved plan introduces a major uplift in monthly payments, with the most substantial boost aimed at retirees receiving the lowest pensions.
45% Increase for Lower-Income Retirees: Retirees, disabled individuals, and survivors of pensioners whose current benefits are equal to or less than the minimum wage set by the Supreme Labour Council will receive a significant 45% raise, effective from the start of the current Iranian year.
Structured Raise for Higher Pension Tiers: For those whose existing pensions were above last year’s minimum wage threshold, the increase will be calculated as a 32% raise plus a fixed sum of 931,605 tomans.
Comprehensive Support: The decree also ensures a 45% increase for those receiving partial disability benefits and aligns family and child allowances for social security retirees with those provided to retirees of executive agencies.
Guaranteed Minimum Income
A central feature of this reform is the establishment of a guaranteed minimum total income. After applying all the new increases, allowances, and benefits—including family and child allowances, subsistence aid, and housing benefits—no pensioner will receive less than 15,081,032 tomans per month.
This comprehensive policy underscores the government’s commitment to enhancing the living standards of its retired community and ensuring their economic security.
