Iran Unveils New Retirement Law, Easing Access for Workers and Rural Communities
In a significant social policy development, new regulations have been announced that adjust retirement ages, pension qualifications, and administrative processes. The law is presented as a key component of a broader “workforce rejuvenation” plan, aiming to create opportunities for younger entrants while providing earlier retirement for specific groups.
Key Provisions of the New Law
The legislation introduces three primary changes designed to streamline the system and provide relief to workers.
1. Lower Retirement Age for High-Risk Occupations
The retirement age has been formally reduced for individuals in demanding and hazardous professions. Depending on the intensity of the job’s risks and conditions, the retirement age can now be lowered by two to five years from the previous standard.
This adjustment means the maximum retirement age for men in these fields can drop from 60 to either 55 or 58 years. For women, it can be reduced from 55 to either 50 or 53 years. This is contingent upon the individual having a verifiable work history in the same field.
2. Reduced Minimum Insurance Payment Period
The minimum required history of insurance premium payments has been lowered for certain groups from 30 years to 25 years. This change effectively allows individuals to begin receiving their pension five years earlier than previously possible.
3. Streamlined Administrative Process
The previously multi-stage process for identifying and certifying eligible occupations has been simplified. It is now a unified procedure registered through an integrated system, reducing processing time from several months to a few weeks.
Balancing Social Welfare with Fiscal Sustainability
While the government hails the law as a step towards social justice and workforce renewal, financial experts have raised questions about the long-term fiscal impact. The core concern is that earlier retirement extends the period of pension payouts, which could place additional strain on the financial resources of pension funds without stable backing.
The streamlined identification process, while reducing bureaucratic complexity, also carries the risk of an uncontrolled expansion of the “hazardous jobs” classification or approvals being granted without rigorous assessment.
Expanding Social Security Coverage in Rural Areas
Concurrent with the national law, officials have highlighted successful efforts to expand the social safety net through the Social Insurance Fund for Farmers, Villagers, and Nomads. A senior official from West Azerbaijan province announced that the region leads the nation in enrolling new members into this fund.
- Broad Eligibility: The fund’s coverage is not limited to farmers. It extends to a wide range of individuals, including nomads living in cities, handicraft workers, home-based business owners, beekeepers, drivers, and Quranic teachers.
- Comprehensive Benefits: Members who join close to the age of 50 can retire after 15 years of premium payments. The fund also provides benefits for disability (both work-related and non-work-related) and survivor pensions.
- Accessible Services: To ensure widespread access, the fund has established numerous service desks in rural and nomadic areas and offers non-face-to-face services through its website and mobile application, including premium payments and purchasing military service years.
- Financial Support: Pensioners under the fund benefit from a 70% government subsidy on premiums, significantly reducing costs. This year, pensions saw a 20% increase, including back pay. Furthermore, hundreds of loans have been disbursed to pensioners in West Azerbaijan province.
For many workers who have spent decades in strenuous jobs, these changes represent a tangible step towards an earlier, well-deserved retirement, marking a significant shift in Iran’s social security landscape.
