Iran Unveils New Performance-Based Pay System for Education and Healthcare Sectors
In a significant move towards administrative reform, a high-level committee convened on Saturday to advance the implementation of a new performance-based budgeting and payment system, with a pilot program set to begin in the education and healthcare sectors.
High-Level Meeting Charts Course for Reform
The third meeting of the specialized ‘Performance-Based Budgeting’ committee was held at the headquarters of the Administrative and Recruitment Organization. The session brought together senior managers from key national bodies, including the Court of Accounts, the Plan and Budget Organization, the President’s Office, and the National Treasury.
The primary agenda was a detailed review of the proposed executive bylaw for Clause ‘A’ of Article 18 of the country’s Seventh Development Plan, which mandates the shift to a performance-based budgeting system.
Government Commitment to Precision and Efficiency
Alaeddin Rafizadeh, the President’s Deputy and Head of the Administrative and Recruitment Organization, emphasized the government’s meticulous approach. “In these specialized meetings, we must carefully examine all studies, criticisms, proposals, and mechanisms to ensure any shortcomings are minimized,” he stated.
Rafizadeh confirmed that the pilot launch for this new payment structure will initially cover the Ministries of Education, Health, Medical Education, and Technical and Vocational Training. The successful implementation in these sectors is intended to serve as a model for its eventual expansion across all government agencies.
Focus on Service Costing and Definitions
The core of the discussions focused on the precise mechanisms for determining the final cost of services, defining service types, and establishing service identifiers. These are critical foundational steps for establishing a fair and transparent performance-based payment and budgeting framework. The findings from this committee are slated to be presented and finalized in the upcoming meeting of the main ‘Performance-Based Payment System’ working group.
Presidential Endorsement of National Priorities
This high-level working group was established by a direct decree from the President and is chaired by Mohammad Jafar Qaempour, the President’s Executive Deputy. Alaedrin Rafizadeh serves as its secretary, with members including the heads of the Plan and Budget Organization, the National Treasury, the Court of Accounts, and the head of the Parliament’s Plan and Budget Commission.
The special emphasis and support from the President for this initiative underscore the National Consensus Government’s commitment to overhauling administrative structures, establishing greater justice, and enhancing productivity within the national payment system—a priority consistently emphasized by the nation’s leadership.
