Title: New Pension Adjustment Formula Announced for Oil Industry Retirees, Aims for Pay Equity
In a significant move to enhance economic justice for its senior citizens, a new pension adjustment formula for retirees of the oil industry has been officially announced for the upcoming Iranian year (1404). This initiative is designed to address the evolving economic landscape and ensure the welfare of those who have served the nation’s vital energy sector.
Bridging the Gap: A Commitment to Retiree Welfare
The revised formula is the result of extensive expert review and aims to establish greater pay equity, specifically by narrowing the income gap between current retirees and their active counterparts in equivalent roles. The government’s ongoing commitment to pension adjustment, which began last year, has been refined to create a more precise and equitable system that responds directly to the needs of the retiree community.
How the New Formula Works
The new calculation method is individualized, taking into account several key factors to determine a fair and tailored pension amount. The core components of the formula are:
- The average salary of an active employee in an equivalent position over the last two years.
- The retiree’s percentage of service history.
- An annual adjustment coefficient.
- Continuous benefits.
The general calculation is structured as: New Pension = (Average Equivalent Salary × Service History Percentage) + Adjustment Coefficient + Continuous Benefits.
This approach ensures that pensions are aligned with each individual’s career contributions, bringing them closer to the earnings of active workers without reducing any current retiree benefits.
Comprehensive Coverage
The new adjustment formula applies to a wide range of beneficiaries under the oil industry pension funds, including:
- Official retirees of the Ministry of Oil.
- Retirees from the National Oil, Gas, Refining, Distribution, and Petrochemical companies.
- Eligible survivors (spouses and dependent children of deceased retirees).
- Individuals with total or partial disabilities covered by oil employment laws.
Adjustment coefficients will be set for each group according to their specific type of retirement and service conditions.
Implementation Timeline
The formal implementation of the new pension adjustments is scheduled to begin in the seventh month of the Iranian year (Mehr 1404). The new payment rates will be reflected in retirees’ pay slips from the eighth month (Aban), with any arrears for the initial two months paid in the ninth month (Azar). The new pension decrees will be published digitally on the pension fund’s online portal, allowing retirees to review the calculation details and submit inquiries if discrepancies are found.