Government Rules Out Further Pension Increases for 2024, Citing Economic Constraints
In a significant announcement, Iran’s Minister of Cooperatives, Labour, and Social Welfare, Ahmad Meydari, has stated that the government has no plans for an additional pension or wage increase in the current Iranian year (1404). This decision comes despite ongoing appeals from worker and retiree groups for a mid-year salary adjustment.
Acknowledged Gains, But Persistent Gaps
Minister Meydari, speaking at a provincial meeting, acknowledged the substantial increases already implemented this year. He noted that workers’ wages saw a 45% rise, while pensions for retirees were raised between 50% and 60%. These measures, he clarified, were intended as a step toward improving livelihoods.
However, he emphasized that these increments have not been sufficient to bridge the gap between household income and the rising cost of living. “The household subsistence basket has become significantly larger than the received wages due to persistent price increases,” Meydari stated. “Even with the recent raises, this gap has not been compensated.”
Economic Stability Takes Precedence
The Minister framed the decision within the broader context of national economic stability. He indicated that continuing a cycle of frequent wage hikes could pose significant challenges for the country’s economic enterprises. He further pointed out that the overall situation of the country’s labor market, in terms of both inflation and unemployment, remains a complex issue that cannot be resolved through short-term measures alone.
Existing Support Mechanisms Highlighted
The government’s current support package for low-income retirees was also outlined. This year’s approved measures include a 45% increase for minimum-wage pensioners and a 32% raise for other pension tiers. Additional benefits, such as family allowances (2,106,000 Tomans), child benefits (1,719,000 Tomans), and a living stipend (600,000 Tomans), remain in place for those on minimum pensions.
This definitive statement from the ministry clarifies the government’s position, indicating that while the economic pressures on citizens are recognized, further direct increases to pensions and wages are not feasible under the current economic plan for the remainder of the year.
