Title: Pension Adjustment Plan Advances: Key Details Announced for 1405
In a significant development for retirees, the framework for pension adjustments in the Iranian year 1405 has been clarified. The process underscores the government’s ongoing commitment to the welfare of its retired community through structured and predictable economic planning.
Annual Increase Aligned with National Policy
The annual pension increase for retirees is not governed by the general budget law. Instead, it is determined by the Supreme Labor Council and subsequently ratified by the Cabinet of Ministers. This established procedure, typically finalized in the final month of the Persian calendar year, ensures that pension adjustments are handled through a dedicated and specialized policy channel.
Historical data from recent years shows that these annual increases have fluctuated between 20% and 45%. Retirees receiving the minimum pension have generally seen higher percentage increases, while other pension brackets have experienced average growth of 25% to 35%. For the upcoming year 1405, it is anticipated that this trend will continue, with the increases expected to fall within the same range and minimum-wage pensioners again receiving a proportionally larger adjustment.
Continuation of the Pension Harmonization Plan
Beyond the annual raise, the multi-year Pension Harmonization Plan will continue through 1405. This strategic initiative is designed to systematically enhance the long-term value of pensions.
Benafsheh Mahmoudian, Director General of Pensions at the Social Security Organization, provided key insights into the plan’s progress. She confirmed that over 3200 billion tomans were allocated for harmonization payments in 1404. The process, which began in Aban 1403, has already completed the harmonization for the first two years for more than 4.7 million retirees.
“The plan is scheduled to continue in 1405,” Mahmoudian stated, “so that by the end of the third year, 90% of the decline in the pension coefficient relative to the minimum wage at the time the pension was established will be compensated.”
A Legislated Commitment to Retirees
The official emphasized that the continuation of this plan is a legal obligation for pension funds, including the Social Security Organization, as mandated by the Seventh Development Plan Act. While the monthly cost of the harmonization was estimated at approximately 55,000 billion tomans for 1404, representing a significant financial undertaking for the organization, it plays a vital role in improving the purchasing power and livelihood of retirees.
Collectively, the anticipated annual pension increase for 1405, coupled with the continued implementation of the harmonization plan, is projected to result in a substantial overall growth in retirees’ income, reflecting a consistent policy focus on this segment of the population.