Title: Landmark Government Directive Grants Retirees Significant Pay Increase and Arrears Settlement
In a significant move to enhance social welfare and economic justice, the Iranian government has officially enacted the second phase of its pension harmonization plan, resulting in a substantial 40% pay rise for retired educators. This directive, confirmed by the National Retirement Fund, will take effect from the start of the current Iranian month of Azar (November 22, 2024).
A Major Boost for Pensioners
The long-anticipated decision marks a pivotal step in the government’s policy to bridge the income gap between active and retired civil servants. For many retired educators, this translates to a monthly income increase of between 5 to 8 million tomans. Furthermore, the government has mandated the full settlement of eight months of outstanding arrears from the first part of the year, ensuring two significant deposits for retirees by the end of Azar.
Official Details of the Increase
According to the official announcement from the National Retirement Fund, this salary adjustment applies to all retirees from the Ministry of Education. Mortaza Qodratipour, Director General of the Tehran Provincial National Retirement Fund, confirmed that “90% of the new payment decrees have been issued, and from Azar, pension payments will be based on these new decrees.”
Following this increase, the average monthly income for retired educators will rise to over 25 million tomans, with some retirees even receiving more than the minimum wage of their active counterparts.
Addressing Economic Realities
The 40% increase is a direct response to the growing economic challenges faced by retirees. In recent years, the disparity between the salaries of active workers and pensioners had exceeded 50%. This adjustment is designed not only to restore purchasing power but also to demonstrate the government’s firm commitment to implementing wage justice and real harmonization of incomes.
Payment Schedule and Arrears Settlement
The National Retirement Fund has outlined a clear payment schedule to ensure a smooth transition:
- New Azar Salary: The increased pension, based on the new 40% higher rate, will be paid between the 10th and 15th of Azar.
- Outstanding Arrears: The backlog of payments from Farvardin to Mehr 1404 will be settled in a separate, lump-sum deposit by the 25th of Azar. For some pensioners, this arrears payment is estimated to be as high as 20 million tomans.
This comprehensive financial package aims to compensate for the delay in implementing the harmonization policy and to alleviate the living cost pressures on retirees in the second half of the year. All payments will be processed centrally through the state treasury and will be directly visible in the beneficiaries’ bank accounts.