Iranian Government Implements Major Pension Reform to Boost Incomes and Streamline Administration
In a significant move to enhance the welfare of retirees and modernize the public sector, the Iranian government has initiated a comprehensive plan to increase pensions and amend existing civil service regulations.
Key Reforms for Retirees Announced
Zabihollah Salmani, Deputy for Human Capital at the Administrative and Employment Organization, has officially announced the government’s plan to implement a long-awaited pension increase. The initiative involves amending Article 106 of the Civil Service Management Law, marking the first such income adjustment for retirees in 11 years.
Mr. Salmani stated that the central goals of this legislation are to reduce the incentive for early retirement and to manage the income gap between active employees and pensioners. He further emphasized the broader social benefits, noting, “This plan not only strengthens the livelihood of retirees but can also create more job opportunities for the youth.”
Strategic Alignment with National Development Goals
The pension adjustment scheme is a key component of the country’s Seventh Development Plan. This national framework has set a clear objective: to gradually align pension payments with the salaries of active employees, aiming for a convergence of up to 90%. According to Salmani, this reform also addresses structural disparities between different pension funds and aims to resolve imbalances within the national retirement system.
Administrative Streamlining and Efficiency
Alongside the pension reforms, the government is actively pursuing a broader agenda of administrative modernization. Salmani highlighted that “streamlining the country’s administrative system and reducing human resources by 15% are legal mandates of the Seventh Development Plan, which are being pursued seriously.” A separate program for “Administrative Urgencies” has also been launched to enhance service delivery processes and improve oversight of the administrative system’s efficiency.
A Call for Collaborative Support
Concluding his remarks, the deputy called for closer cooperation from the Islamic Consultative Assembly (Parliament) and the media. He requested their support in championing the pension adjustment plan, underscoring its importance for national progress and social equity.