Title: Landmark Reform to Bolster Civil Servant and Pensioner Incomes Gains Traction
In a significant development for the nation’s workforce, a senior government official has announced promising details regarding a proposed financial reform aimed at substantially increasing the take-home pay and future pensions for civil servants.
Key Reform to Exempt Allowances from Deductions
Alaeddin Rafiezadeh, the Head of the State Administration and Recruitment Organization, outlined the core of the initiative in a televised address. The central proposal involves exempting certain allowances and overtime pay from standard payroll deductions. This strategic shift, he explained, is designed to prevent a sharp decline in income for employees once they transition into retirement.
Two-Part Salary Structure Explained
Elaborating on the current system, Rafiezadeh clarified that a civil servant’s total income is composed of two primary parts. The first is the base salary, which is formally stated in their employment contract. The second, and more substantial, part consists of various welfare benefits and overtime payments, which can account for 40 to 50 percent of an employee’s total earnings. Under the existing framework, deductions are applied to this larger portion, which can negatively impact the calculation of their final pension.
A Step Toward Enhanced Financial Security
The official confirmed that the proposal is currently under careful review by the government. “If this plan receives the government’s approval and is ratified,” Rafiezadeh stated, “its implementation will be pursued as an effective step in improving the financial situation of employees.”
The successful passage of this reform is anticipated to provide considerable advantages for both active civil servants and retirees. By shielding a larger portion of their income from deductions, the policy is expected to directly enhance their purchasing power and long-term financial security, marking a positive step in the government’s ongoing efforts to support its workforce.