Title: Iranian Government Announces Dual Pension Payment and New Adjustment Formula for Oil Industry Retirees
In a significant move to support retirees, the Iranian government has confirmed that a double payment will be disbursed to oil industry pensioners in the current month. This payment combines the regular monthly pension with three separate occasion-based bonuses.
A Welcome Financial Boost
The additional payments are tied to the anniversaries of the birth of Prophet Muhammad (PBUH), the reopening of schools and universities, and a special day for government employees. This consolidated payment is designed to provide timely financial relief to retirees.
Addressing Economic Pressures Through Systemic Reform
Recognizing the challenges posed by the current economic climate and the rising cost of living, the government has been implementing a comprehensive pension harmonization plan. After a review of the initial plan to enhance its effectiveness, a new, expert-backed formula for pension adjustment has been finalized for the current Iranian year (1404).
The New Pension Harmonization Formula
The newly designed formula aims to establish wage justice and reduce the income gap between retirees and their active counterparts. It is a tailored calculation that considers several individual factors:
- The average salary of an equivalent active employee over the last two years.
- The retiree’s service history percentage.
- An annual adjustment coefficient.
- Continuous benefits.
The general calculation is: New Pension = (Average Equivalent Employee Salary × Service History Percentage) + Adjustment Coefficient + Continuous Benefits.
This individualized approach ensures a fair pension that reflects each retiree’s service conditions, bringing it closer to the salary of an equivalent active employee without reducing anyone’s current benefits.
Scope and Implementation
The new formula applies to all pensioners and beneficiaries covered by the oil industry retirement funds, including:
- Official retirees of the Ministry of Petroleum.
- Retirees from the National Iranian Oil, Gas, Refining, and Distribution Companies, and Petrochemical Industries.
- Eligible survivors (spouses and dependent children of deceased pensioners).
- Those with full or partial disabilities covered by oil employment laws.
The adjustment coefficients will be set proportionally for each group based on the type of retirement and service conditions. The official implementation of the plan began last month, with the new payment rates appearing on pension slips from the upcoming month. Any arrears for the first two months will be paid in the following month.
Retirees will be able to view their new digital decrees and detailed calculations through the pension fund’s online portal, providing transparency and the opportunity to register any inquiries.