Major Pension Boost: 45% Increase and Back Payments for Millions of Retirees This Week
In a significant move to support retirees, the Iranian government has enacted a major pension increase for over 4.7 million Social Security Organization retirees. The new plan, approved by the cabinet and initiated last November, is designed to compensate for purchasing power erosion and improve retirees’ livelihoods, with a multi-year implementation strategy extending through to 2026.
Details of the 2024 Pension Increase
Based on a directive from First Vice President Mohammad Reza Aref, pension, disability, and survivor benefits from the Social Security Organization have been increased effective the start of the current Iranian year (March 2024). The key changes are:
- Minimum Wage Pensioners: Those receiving a pension equal to or less than the 2023 minimum wage will see a 45% increase, resulting in a minimum monthly income of 15,803,000 Tomans, which includes ancillary benefits.
- Other Pension Tiers: Retirees with pensions above the minimum wage will receive a 32% increase plus a fixed amount of 931,605 Tomans.
- Partial Disability & Others: A 45% increase will be applied, also inclusive of ancillary benefits.
- Family and Child Allowances: These will be aligned with those for retirees of executive agencies, as stipulated in the 2024 budget law.
Ms. Mahmoudian, Director General of Pensions at the Social Security Organization, announced that over 3,200 billion Tomans have been allocated for the pension harmonization plan in 2024. The plan’s ultimate goal is to compensate for 90% of the pension’s decline relative to the minimum wage by the end of 2025.
Implementation and Payment Schedule
The adjustments are being implemented in a multi-stage process. The new pension rate has been applied to accounts starting this month (Shahrivar / August-September), and the arrears for the previous months (Farvardin to Mordad / March to August) are being paid in a lump sum.
- Payment of Arrears: Disbursements began on September 2nd and are scheduled to be completed for 80% of retirees by the end of the month. Minimum-wage pensioners, individuals with disabilities, and survivors are being prioritized.
- Arrears for Other Tiers: Back payments for retirees in other pension tiers will be deposited following the payment of the current month’s pension, at the start of the next month (Mehr / September-October).
This substantial financial injection represents a core component of the government’s ongoing social welfare policy, directly aimed at enhancing the economic security of millions of retirees and their families.