Title: Iran Expands Social Safety Net: Key Dates Announced for Fifth Phase of Commodity Subsidies
In a significant move to bolster household economic resilience, the Iranian government has launched an expanded phase of its targeted subsidy program. The fifth phase of the Electronic Commodity Coupon initiative, integrated with direct cash transfers, is set to roll out in mid-December, marking one of the most extensive support packages to date.
A Two-Pronged Support Strategy
The new phase is designed as a hybrid model, combining non-cash credits for essential goods with traditional cash subsidies. This approach is strategically crafted to increase purchasing power and guide consumption toward basic necessities, thereby directly mitigating the impact of inflation on lower-income families.
The rollout will be staggered to ensure that the most vulnerable segments of society receive support first. The Ministry of Co-operation, Labour, and Social Welfare has confirmed that the program will commence in the second week of the Iranian month of Azar.
Staggered Rollout and Credit Allocations
The implementation is carefully phased to maximize efficiency and target support:
- First Wave (Starting mid-Azur): The first to third income deciles—representing the lowest-income households—will receive a credit of 500,000 Tomans. This amount is specifically allocated to cover a substantial portion of a family’s basic food basket.
- Second Wave (Two weeks later): The fourth to seventh income deciles will become eligible for a credit of 350,000 Tomans. This represents an increase from previous months, extending the scope of support to middle-income families.
The credit is exclusively for purchasing designated essential items such as rice, oil, chicken, pasta, eggs, and dairy products at authorized retail outlets. A key feature of the program is that the credit is non-transferable and cannot be withdrawn as cash, ensuring the support is used for its intended purpose.
Streamlined Access for Households
The government has prioritized ease of use. Beneficiaries do not need to register or visit a government office. The head of the household can simply use their personal bank card at any of the contracted chain stores, supermarkets, or selected rural units nationwide. The point-of-sale system will automatically detect and deduct the amount from the commodity credit. For purchases exceeding the credit limit, the remaining balance will be deducted directly from the user’s personal bank account.
Coordinated Cash Subsidy Payments
Running in parallel with the commodity coupon program, the direct cash subsidy for Azar will also be distributed in two tranches to ensure smooth coordination:
- First Tranche (December 15): The first to third income deciles will receive a cash payment of 400,000 Tomans.
- Second Tranche (December 20): The fourth to ninth income deciles will receive 300,000 Tomans.
This synchronized delivery of both commodity credits and cash subsidies means the total support provided to households in December will be significantly higher than in previous cycles.
A Comprehensive Support Framework
The simultaneous rollout of these programs underscores the government’s commitment to strengthening its social welfare infrastructure. By developing electronic payment systems and targeting support effectively, the initiative aims to provide immediate relief while fostering long-term economic stability for Iranian families. The expanded fifth phase reflects the positive public response to the commodity coupon model, encouraging its continued development and application.