Title: Government Refines Subsidy Program, Reinstates and Adjusts Payments for Eligible Families
Tehran – In a significant move to enhance the precision of its social welfare system, the government has completed a major review of its national subsidy program, resulting in the automatic reinstatement of payments for many previously excluded households and the continued phase-out for higher-income groups.
Automatic Reinstatement for Eligible Families
A key outcome of a recent recalibration of income deciles is that numerous families who had been removed from the subsidy recipient list in the past have now had their benefits automatically restored. This process required no formal appeal or application from the households.
For instance, one family whose subsidies were halted in 2010 has seen payments resume over the past three months. This reinstatement is a direct result of the new income classification, which placed them in the seventh income decile, making them eligible for support once again.
Phased Removal for Higher Income Deciles
Concurrently, the process of removing subsidies for the tenth and highest income decile has been finalized. As part of this phase, approximately 3 million remaining recipients from this decile were removed from the program in August 2024.
This action is firmly grounded in the legal framework of the National Budget Law for the year 2024. The law mandates the government to phase out cash subsidies for higher-income households (deciles 8 to 10) and re-allocate those resources to strengthen support for lower-income deciles.
A Methodical, Law-Based Approach
The initial phase of the subsidy adjustment, executed in August 2024, first targeted households with a monthly per capita income exceeding 10 million Tomans after deducting housing rent costs—a group predominantly within the top income bracket.
This meticulous process was conducted using the latest available data from the first quarter of 2024. To ensure fairness and transparency, a dedicated appeals system was established, allowing families to request a review of their status if they believe it was incorrectly assessed.
Official reports indicate that the removal of subsidies for the eighth and ninth deciles remains on the agenda, with the initial focus having been on the top decile. Estimates suggest that a total of approximately 18 million individuals will eventually be phased out of the universal subsidy system, with 3 million already removed.
This ongoing refinement of the subsidy program is being implemented in a gradual and transparent manner. Its primary objective is to increase the efficiency and targeting of the nation’s supportive resources, ensuring they reach the citizens who need them most.