Title: Upcoming Pension Adjustments Set to Enhance Retiree Livelihoods
Introduction
In a significant development for national social welfare, key figures for next year’s pension adjustments have been announced. These planned increases, part of a multi-year strategy, are designed to substantially improve the financial standing of retirees across the country.
Annual Increase Mechanism Confirmed
The Supreme Labor Council is set to announce its annual pension adjustment in the coming days, a process that will continue into the next Iranian year (1405). This adjustment is a standard annual procedure, determined by the Council and approved by the cabinet, operating independently of the annual budget law. This dedicated mechanism ensures consistent and focused attention on retirees’ needs.
Sustained Growth in Pension Benefits
In recent years, pension increases have ranged between 20 to 45 percent, with the most significant adjustments consistently directed toward those receiving the minimum pension. Other pension brackets have also seen substantial average increases of 25 to 35 percent. This progressive trend is expected to continue, ensuring that lower-income retirees receive a larger share of the adjustment.
Ongoing Rights Proportionality Plan
The third phase of the “Rights Proportionality Plan” is currently underway, further contributing to the rising income of retirees compared to previous years. Banafsheh Mahmoudian, Director General of Pensions at the Social Security Organization, confirmed that the plan, which began in the latter part of 1403, will extend into 1405.
Details of the Next Phase
Ms. Mahmoudian elaborated on the plan’s objectives, stating, “The third phase of proportionality will be implemented in 1405. This phase is designed to compensate for approximately 90 percent of the reduction in the pension coefficient relative to the minimum wage at the time the pension was established.” She emphasized that pension funds are mandated to continue this initiative within the framework of approved credits, as per the nation’s Seventh Development Plan.
Significant Investment in Retiree Welfare
The commitment to this initiative is reflected in the substantial resources allocated. Estimates indicate the monthly cost of implementing the plan in 1404 was approximately 5,500 billion tomans, with over 3,200 billion tomans already expended to date. Despite the considerable financial commitment, the plan has had a marked impact on boosting the purchasing power and improving the living standards of retirees.
Projected Outcomes for the Coming Year
In 1404, the adjustment resulted in an increase of approximately 3 to 5 million tomans for retirees. Similar figures are projected for the upcoming year, signaling a continued positive trajectory in enhancing the quality of life for the retired community.