Title: “Vice President Announces Pension Reforms: Retirees to See Gradual Pay Increase to 90% of Active Workers’ Salaries”
Pension Reforms Set to Bridge Pay Gap
The Vice President of Iran has announced a major pension reform plan, ensuring retirees will see their benefits gradually rise to 90% of active workers’ salaries within three years. The initiative, part of the country’s development program, aims to enhance fairness in pension payments without imposing financial strain on citizens.
Alaeddin Rafiezadeh, the Vice President, emphasized that administrative reforms are critical to improving efficiency and public satisfaction. “Our administrative system must evolve to prevent inefficiency and dissatisfaction,” he stated, noting that adjustments will be implemented carefully to avoid disrupting livelihoods, particularly in vital sectors like agriculture.
Performance-Based Pay System Introduced
The new framework will introduce performance-based payments without reducing current salaries. Approximately 50% of executive agencies, including the Postal Company, Meteorological Organization, and Road Maintenance & Transportation Organization, are already piloting the system.
Rafiezadeh clarified that the pay adjustments primarily target retirees, not active employees. Legislative amendments to the Civil Service Management Law are also underway to ensure fair pension calculations based on contributions.
Addressing Structural Imbalances
The Vice President highlighted imbalances in workforce distribution, with surpluses in some areas and shortages in others. He stressed the need to optimize resources by repurposing excess government assets to support employees’ welfare.
Retirees Demand Pay Equity
As the government prepares its budget and welfare plans, civil service retirees have petitioned President Masoud Pezeshkian and Parliament Speaker Mohammad Bagher Ghalibaf, urging full pay parity with Social Security Organization retirees.
Currently, Social Security retirees receive inflation-adjusted raises, while civil service pensions see fixed percentage increases—often below real inflation rates. This disparity has sparked widespread protests, with retirees calling for:
- Equalization of pensions based on inflation, living costs, and fair benchmarks.
- Uniform pay scales for retirees with similar qualifications and experience.
- An independent oversight body to advocate for retirees’ rights.
Experts Propose Solutions
Policy experts recommend restructuring the civil pension fund’s budget, adopting hybrid calculation models (factoring in inflation and job rank), and forming a High Council for Retirees’ Rights to standardize policies.
A Call for Urgent Action
The retirees’ appeal underscores the need for immediate reforms to uphold social justice and preserve trust in the pension system. “Years of public service deserve fair recognition,” their letter states, warning that prolonged inequality risks destabilizing the broader employment framework.
With public discontent growing, the government faces mounting pressure to deliver equitable solutions swiftly.
