Title: Social Security Chief Outlines Financial Strategy, Stressing Employer Compliance for Sustainable Pensions
In a significant address at the monthly meeting of provincial mayors held in Qom, Mostafa Salari, the Managing Director of the Iran Social Security Organization, detailed the organization’s financial foundations and future roadmap, emphasizing the critical link between employer compliance and the uninterrupted provision of services to millions of Iranians.
A Self-Sustaining National Institution
Mr. Salari began by clarifying the financial structure of the Social Security Organization, established in 1975. He firmly stated that contrary to some perceptions, the organization’s resources are not drawn from government revenues or oil sales. Instead, it operates as a “defined-benefit fund,” financed exclusively by contributions from both employees and employers.
“The Social Security Organization is not a relief or charitable entity,” Salari explained. “It functions based on law, providing only those services mandated by the legislature, which are funded by the collected insurance premiums.”
The Critical Role of Employers
A central theme of the address was a direct call to employers across the nation. The Managing Director warned that any negligence by employers in the timely and full payment of insurance contributions risks depleting financial resources, which could disrupt the provision of insurance benefits, healthcare services, and the payment of pensions.
He identified a major source of the organization’s financial shortfall: the discrepancy between the real wages of employees and the amounts recorded on their pay slips. Salari asserted that if employers universally reported real wages and paid the corresponding legal premiums, a significant portion of the financial deficit could be resolved.
Financial Scale and National Responsibility
Highlighting the immense scale of the organization’s operations, Salari revealed that this year’s expenditures exceed 1,500 trillion tomans. The organization is responsible for paying pensions to approximately 4.9 million retirees and beneficiaries, while also covering the medical costs for over 48 million insured individuals. This underscores the profound national impact of its financial health.
Forging Partnerships with Municipalities
Looking forward, the Managing Director announced that memoranda of understanding are being prepared with the national organization for municipalities. The objective is to enhance wage transparency, ensure timely reporting, and secure the regular payment of insurance premiums.
Addressing the mayors directly, Salari positioned them as essential partners in upholding the law. “You are our partners in the implementation of the law,” he stated. “If we do not perform our legal duties precisely and on time, the activities of municipalities will also be disrupted.” He added that in areas with less cooperation, the organization implements targeted three or six-month programs to systematically address challenges.