Title: Landmark Pension Reform: Iran Announces Significant 45% Increase and Multi-Trillion Toman Adjustment for 2024
In a major development for social welfare, retirees under Iran’s Social Security Organization have received the substantial pension increase they have long anticipated. A new decree for the 2024-2025 fiscal year has been issued, marking a significant step forward in the government’s commitment to supporting its retired citizens.
A New Chapter for Pensioners
Effective from the start of the current Iranian year (March 20, 2024), all pensioners and beneficiaries can now view the details of their new benefits, including updated monthly payments and arrears, through the Social Security Organization’s online portal. Ms. Banafsheh Mahmoudian, Director General of Pensions at the Organization, announced that over 3.2 trillion tomans have been allocated for the 2024 pension adjustment program. This initiative, which includes increases of up to 45% for minimum-wage earners, brings renewed hope to over 4.7 million retirees.
Breakdown of the 2024 Increase
Based on a cabinet approval, the pension adjustment is applied retroactively from the new year. The structure of the increase is as follows:
- Minimum-Wage Earners: Pensioners whose previous income was at or below the minimum wage set by the Supreme Labor Council will see a 45% increase, raising their minimum monthly pension to 15.803 million tomans.
- Other Pension Tiers: Those who received more than the minimum wage will get a 32% increase, plus a fixed amount of 931,650 rials (93,065 tomans).
This structured approach is designed to improve livelihoods and compensate for changes in purchasing power.
Multi-Trillion Toman Equity Adjustment
A central component of this reform is the “pension adjustment” (Motenaseb-Sazi), a key demand from pensioner groups. In line with the country’s Seventh Development Plan, the Social Security Organization is mandated to compensate for 90% of the gap between pension coefficients and the minimum wage over a three-year period.
Ms. Mahmoudian explained that the adjustment process began in 2023. For the current year, 30% of the targeted 90% gap will be closed. This effort requires a monthly allocation of 3.2 trillion tomans for the 2024 adjustment, plus an additional 2.2 trillion tomans for the enhanced 2023 adjustment, totaling a monthly expenditure of approximately 5.5 trillion tomans. This represents a 59% year-over-year growth in the rate of pension and adjustment payments.
Substantial Boost to Supplementary Benefits
Beyond the base pension, supplementary benefits have also received significant increases:
- Living Allowance: Increased by 50% to 600,000 tomans.
- Family Allowance: Increased by 50% to 2.1 million tomans.
- Child Allowance (per child): Doubled (100% increase) to 1.719 million tomans.
- Housing Allowance: Increased by 50% to 4.05 million tomans.
These enhancements apply to all retirees, disabled individuals, and survivors, guaranteeing a minimum monthly income.
Payment of Arrears and Implementation
Arrears related to the first seven months of the previous year were settled in mid-April 2024. For the current year, the new rates are effective from March 20, 2024. Pensioners can expect to receive the difference for the past months in their first payment following the official issuance of the new decrees.
Accessing New Pension Decrees
Retirees can easily access their new pension details online:
- Visit the official portal es.tamin.ir.
- Log in using their National ID and Social Security Number.
- Select the option to “View Pension Decree”.
- Download and review the new decree for full details.
The Organization has advised pensioners to ensure their information is entered correctly and to compare their new decree with official bulletins. Any discrepancies can be addressed through the online system or by contacting local Social Security offices.
This comprehensive pension reform underscores the ongoing efforts to enhance social welfare and provide economic security for retirees, representing a significant investment in the well-being of the nation’s senior citizens.
