Title: Government Proposes Pension Reform to Enhance Retiree and Employee Benefits
A Significant Step for Economic Security
A key proposal currently under review by the Iranian government aims to significantly improve the financial standing of retirees and state employees. The central plan involves applying retirement deductions to employees’ benefits and overtime pay, a measure that promises to substantially boost future pension funds and prevent a decline in retiree income.
Official Endorsement and Timely Implementation
According to statements from the Vice President, if the proposal is approved by the cabinet, its implementation will commence immediately. This initiative is viewed as a major development in the government’s efforts to enhance the welfare of its workforce and secure a more stable financial future for retirees.
Understanding the Current Pay Structure
As reported, an employee’s total salary is currently divided into two main components:
- Base Salary: The fixed amount specified in an employee’s official contract.
- Supplementary Income: This includes various benefits and overtime pay, which on average constitutes 40 to 50 percent of an employee’s total earnings.
The proposed reform would extend retirement contributions to cover this substantial supplementary income segment. By doing so, the pension fund would receive increased contributions, directly leading to higher and more secure pension payouts for retirees.
Expected Timeline for the Proposal
Following ongoing deliberations, the Administrative and Employment Affairs Organization is expected to formally present this proposal to the cabinet within the next one to two weeks. The approval and subsequent execution of this policy are poised to bring about a positive and notable shift in the financial conditions for both active civil servants and retirees.