Title: Government Launches Comprehensive Overhaul of Pension Payment System, Introduces New Benefits
In a significant move to enhance social welfare and economic justice, the Iranian government has officially activated a new, clearly defined line item on pensioners’ payslips. This initiative, a cornerstone of the administration’s broader policy agenda, marks a new phase in efforts to improve retirees’ livelihoods and is designed to directly increase their monthly net income.
A Strategic Shift in Payment Structure
This addition is not a routine financial adjustment but a strategic measure to address long-standing wage disparities and bolster the purchasing power of retirees. The government has announced that the base amount for this new benefit has been calculated based on comprehensive assessments of living conditions and actual costs. Its implementation is structured to ensure all eligible pensioner groups can benefit and see a tangible impact on their final pay.
The Vice President and Head of the State Organization for Administrative and Employment Affairs highlighted that this initiative is part of a major transformational period for the national payment system. The overarching goals are to increase occupational justice, strengthen employee motivation, and reduce the income gap between active employees and retirees.
Addressing a Long-Standing Challenge
A central challenge within the previous payment system was the cessation of various benefits upon retirement. While employees received allowances for housing, household goods, and special occasions, these were typically removed from their payslips after they retired, leading to a significant and often difficult drop in income.
The current administration has identified this as a “serious axis of reform” and has moved beyond statements to actionable planning. The newly introduced payslip item is a direct response to this issue, appearing as a fixed, non-deductible amount to ensure a real increase in net income and an improvement in living standards.
Expert-Led Reform and Future Outlook
To ensure the reform’s success and sustainability, the government has convened multiple expert sessions with specialists from financial, insurance, and payment system backgrounds. These meetings are evaluating various scenarios, including the permanent integration of certain benefits into pension calculations and the design of alternative support packages.
The final decision, authorities stress, will be guided by a justice-oriented approach and must be implementable across all pension funds. This reform is seen as a potential precursor to broader harmonization and review of the social security landscape—a development long awaited by the retiree community. With the plan now in an advanced stage of expert review, further significant announcements regarding the payment system and retiree incomes are anticipated in the coming months.