Title: A New Chapter for Retirees: Government Implements Final Phase of Pension Reform
In a significant move to bolster economic justice and social welfare, the Iranian government is set to fully implement the final phase of its comprehensive pension harmonization plan in the upcoming Iranian year of 1405. This strategic initiative, designed to bridge the income gap between retirees and active workers, represents a core component of the nation’s social protection policies.
Addressing Economic Challenges
In the face of global economic pressures and rising living costs, safeguarding the purchasing power of retirees has been a key government priority. The pension harmonization scheme, enacted under the Seventh Development Plan, directly addresses these challenges by systematically increasing pension payments to ensure a more equitable and dignified standard of living for the nation’s elderly.
Breakdown of the 1405 Adjustments
Based on official announcements, the upcoming adjustments in 1405 are projected to provide a substantial increase in pensions. The exact amount varies by pension fund and the individual’s initial salary, with estimates as follows:
- Minimum-wage Social Security Retirees: An increase of approximately 3 to 4 million Tomans.
- Mid-level Social Security Retirees: An increase of approximately 3.5 to 4.5 million Tomans.
- State Retirees: An increase of approximately 4 to 5 million Tomans.
- Military Retirees: An increase of approximately 5 million Tomans.
This third and final phase is projected to reduce the income disparity for the lowest-earning retirees by up to 30 percent compared to their active counterparts.
A Phased and Systematic Approach
The implementation of this reform has been a carefully managed, multi-year process to ensure its stability and effectiveness.
- Phase 1 (1403): Approximately 40% of the calculated payment differential was applied.
- Phase 2 (1404): The annual increase, combined with further harmonization, brought the total compensation to nearly 50% of the differential.
- Phase 3 (1405): This final stage will disburse the remaining 30%, bringing retirees’ incomes to nearly 90% of the wages of active workers in equivalent roles. The government has guaranteed the stable and timely allocation of financial resources for this crucial phase.
Timeline and Projected Outcomes
The adjustments from the final phase will begin from the end of 1404 and be fully operational throughout 1405. Retirees will receive their increased pensions on a monthly basis.
Overall, pension growth is aligned with changes in the minimum wage for active workers. Following increases of 20-45% in 1404, projections for 1405 suggest a further rise of 25-35%. Experts affirm that when combined with the final harmonization phase, retirees will witness a marked improvement in their income and purchasing power, marking a positive step forward in their financial security.