Title: Iran Announces 2025 Pension Increase, Continues Comprehensive Reform Plan
Tehran – In a significant development for the nation’s social welfare system, a new pension increase for the year 2025 has been officially confirmed. This adjustment, part of the government’s ongoing policy to enhance the livelihoods of retirees, will be implemented alongside the continuation of the third phase of the pension harmonization plan.
Annual Adjustment Mechanism
As per established procedure, the exact percentage of the annual pension increase is typically announced in the final month of the Iranian calendar year. This adjustment is determined by the Supreme Labor Council and approved by the Cabinet of Ministers, operating independently of the annual budget law. Based on trends from previous years, increases have ranged between 20 to 45 percent, with the most substantial benefits directed towards retirees receiving the minimum pension level. Other pension brackets have historically seen average increases of 25 to 35 percent, a pattern expected to continue into the coming year.
Continuing the Harmonization Reform
A key component of this year’s financial uplift is the ongoing implementation of the third phase of the pension harmonization plan. Banafsheh Mahmoudian, Director General of Pensions at the Social Security Organization, confirmed that this phase is active and will continue throughout 2025. She reported that over 3200 billion Tomans have already been allocated for its execution.
“The primary objective of the third phase of harmonization is to compensate for approximately 90 percent of the reduction in the pension coefficient relative to the minimum wage that was in effect at the time of the individual’s retirement,” Mahmoudian stated, highlighting the plan’s targeted approach.
Legislative Backing and Financial Commitment
The continuation of this vital reform is mandated under Iran’s Seventh Development Plan, which obliges pension funds to proceed with the harmonization scheme within the framework of approved credits. The estimated monthly cost of implementing this plan up to the year 2024 was approximately 5500 billion Tomans. Despite financial pressures, the policy has been credited with having a significantly positive effect on restoring retirees’ purchasing power and improving their living standards.
A Positive Outlook for Retirees
The combined effect of the annual pension increase and the sustained harmonization plan is projected to create favorable conditions for retirees’ income growth in 2025. This dual approach is set to not only improve their welfare but also further strengthen their economic standing.
It is projected that the harmonization adjustment for pensions in the previous year amounted to between 3 to 5 million Tomans, with a similar range anticipated for the upcoming year.