Iran Finalizes Significant Pension Increase for 2024, Implements Second Phase of Harmonization
In a major move to support retirees, the Iranian government has finalized and begun implementing a substantial pension increase for the year 2024. Following official approvals, the new payment scales for the country’s three main pension funds—Civil Servants, Military and Security Forces, and Social Security—were announced, with payments being disbursed in stages.
Based on a government resolution and the directive from the Plan and Budget Organization, the base pension for 2024 has seen an average increase of 20 percent. Furthermore, the second phase of a “harmonization plan” has been applied, aimed at reducing the income gap between retirees and active employees. As a result, the total income boost for many retirees is estimated to be between 20 and 30 percent compared to the previous year.
Social Security Retirees See Boost
The Social Security Organization has announced that its retirees’ pensions are now being calculated with the 20% base increase and the second phase of the harmonization plan. According to published tables, the minimum pension for this group is now approximately 11.7 million tomans.
The pension for the month of Mehr was deposited between October 19-21. Additionally, starting November 5, the process of paying the arrears and differential amounts for the period from March to September began. These payments are being processed based on beneficiaries’ last names and their respective banks. The organization’s managing director has assured that all arrears will be settled by mid-November.
For those earning above the minimum, the increase varies based on insurance records and harmonization coefficients, with an average reported increase of around 25 percent. A new phase of subsistence allowances for groceries and housing is also scheduled to begin in Azar (November/December).
Civil Servant Pension Adjustments
The Civil Servants Pension Fund also announced that its retirees’ pensions for 2024 have been calculated with the 20% base increase and the application of the second harmonization phase. The total increase, factoring in job group, years of service, and education level, ranges from 22 to 30 percent. Groups that received a smaller adjustment in the first phase last year saw a more significant increase this time.
The October pension was paid with the new increases, and the differential for the months of March to September began being deposited into retirees’ accounts from November 10. The average pension for civil retirees after these adjustments is reported to be around 15 million tomans, with the minimum set at 12 million tomans.
The fund’s managing director emphasized that the primary goal of the recent harmonization is to narrow the pension gap with their active counterparts. Plans are also underway to enhance welfare benefits, including medical aid and other facilities.
Enhanced Pensions for Military Retirees
The Armed Forces Pension Fund has similarly released new payment scales for military retirees, covering personnel from the Army, IRGC, Police, and Ministry of Defense. Their pensions from the start of the year also include the 20% base increase and the second harmonization phase.
Official statements indicate that the minimum pension for a military retiree with 30 years of service is now about 14.04 million tomans. Increases for those with longer service or higher ranks are scaled, with some reports citing raises of up to 30 percent.
The October pension was paid with the new rates, and the differential for March to September has been paid since November 8. All related arrears are expected to be fully settled by mid-November.
Clearing Arrears a Top Priority
The payment of these pension arrears has been a key operational priority for the relevant executive bodies in recent months. The necessary budget for these increases and the settlement of arrears has been secured from sustainable sources, including surplus oil and tax revenues, according to a government spokesperson, who also guaranteed no delays in the upcoming November pension payments.
This significant pension adjustment represents a concrete step by the government to improve the livelihood of retirees, with a clear focus on implementing the approved measures efficiently and ensuring the timely disbursement of funds.