Title: Landmark Pension Reform Approved: Iranian Government Secures Long-Term Financial Stability for Public Sector Employees
Tehran – In a significant move to bolster the long-term economic security of its workforce, the Iranian government has approved a new bill that fundamentally reforms the public sector pension system. The initiative, announced by the Minister of Cooperation, Labor, and Social Welfare, is designed to ensure that retirees receive a pension more commensurate with their career earnings.
A Structural Shift for Future Stability
The core of the reform involves recalculating the pension base for government employees. A portion of benefits and overtime payments, which were previously excluded, will now be factored into the calculation of retirement deductions during their employment.
Minister Ahmad Meydari emphasized that this structural change is a proactive measure. “This decision was made to prevent a reduction in employees’ income after retirement,” he stated. He further elaborated that the reform will ensure that the pensions of state retirees do not face a sharp decline in the coming years, thereby creating a more transparent and sustainable payment system within the public sector.
Tangible Benefits for Current Workforce
The immediate impact of this legislation is substantial for current government employees. Minister Meydari confirmed that with the implementation of this bill, the future pension benefits for current state employees are projected to see a significant increase of approximately 30 to 40 percent.
This adjustment paves the way for retirement benefits to be more accurately aligned with the actual level of payments received during an individual’s years of service, marking a pivotal step in strengthening the social welfare framework for Iran’s dedicated public servants.