Title: Landmark Pay Reform: Retired Educators Granted Significant Pension Increase and Arrears Settlement
In a significant move to support its public servants, the Iranian government has officially approved a substantial pension increase for retired educators, alongside the comprehensive settlement of outstanding arrears. This initiative, announced by the National Pension Fund, underscores a continued commitment to aligning the income of retirees with that of their active counterparts.
A Substantial Financial Boost
The reform mandates a 40% pension increase for retired cultural servants, effective from the Iranian month of Azar (beginning November 22, 2024). This adjustment is part of a broader “pay harmonization” process designed to reduce the income gap between active and retired state employees. Following this increase, the average pension for retired educators is set to surpass the minimum wage of active workers.
Crucially, the measure includes the simultaneous payment of arrears accumulated over the first eight months of the current Iranian year. This significant financial commitment, already accounted for in the national budget, will be disbursed as a separate lump-sum payment to the retirees.
Streamlining Pensions and Enhancing Services
Morteza Qodratipour, Director General of the National Pension Fund in Tehran Province, reported that over 90% of the new pension decrees for retired educators were issued by the seventh month (Mehr), effectively reducing the administrative gap between active service and retirement pay. He further highlighted the Fund’s operational efficiency, noting that 20,472 cases and correspondences concerning legal, financial, and welfare matters have been reviewed since the start of the year.
A New Merit-Based Framework for Active Teachers
This pension enhancement coincides with the finalization of a new, comprehensive ranking system for active teachers, developed in collaboration with the Administrative and Recruitment Organization and the Planning and Budget Organization. According to Ali Farhadi, Spokesperson for the Ministry of Education, the new bylaw shifts the focus from purely academic credentials to a more holistic evaluation of educational, research, and developmental performance.
Key features of the new system include:
- Immediate Ranking: Newly hired teachers with a bachelor’s degree will immediately receive the “Educational Instructor” rank, a structure mirroring the academic ranking system in universities.
- Performance-Based Promotion: The criteria for promotion now emphasize teaching performance and contributions over mere seniority or degrees.
- Accelerated Advancement: Teachers can apply for a rank promotion after four years of service in rural areas or five years in urban areas.
Farhadi emphasized that the evaluation boards will operate with a strictly education-centric approach to ensure fair and professional assessments. The new salary scales for both active and newly hired educators will be implemented from the 20th of Mehr 1404 (October 12, 2024).
A Step Towards Enhanced Livelihood and Educational Quality
The dual policy of pension increases and the new merit-based ranking system has been widely welcomed as a major step toward improving the livelihood of educators and restoring the esteemed status of the teaching profession. This government decision, enacted on the eve of the new academic year, is anticipated to provide greater financial stability for educators’ families and serve as a powerful incentive for delivering higher-quality educational and training services nationwide. Experts note that the sustained implementation and fairness of this new framework will be key to its long-term success and its ultimate impact on elevating the quality of education in the country’s schools.


