Title: Landmark Pension Reform: Government Approves Up to 40% Increase for Retirees
In a significant move to bolster social welfare and ensure long-term financial stability for its workforce, the Iranian government has approved a major reform to the state pension system. The initiative, announced by Minister of Labor and Social Welfare, Ahmad Meydari, is set to substantially increase retirement benefits for public sector employees.
A Structural Overhaul for Fairer Pensions
The core of this reform lies in a fundamental change to how pensions are calculated. A new bill, amending Article 106 of the Civil Servants Management Law, has received a positive vote from the cabinet. This legislation mandates the inclusion of previously excluded salary components—such as overtime pay, shift differentials, and certain welfare benefits—into the base calculation for retirement pensions.
Minister Meydari emphasized that this decision was made to prevent a sharp decline in employees’ income after retirement, a common concern for many public servants.
Tangible Benefits and Systemic Stability
The most immediate impact of this reform will be a notable increase in pension payouts. According to the Minister, the pensions of current government employees are projected to rise by approximately 30 to 40 percent upon their retirement.
Beyond the individual benefit, the government highlights the systemic advantages. The reform is expected to enhance the financial capacity of pension funds and create a more transparent and sustainable payment system within the public sector. This structural shift aims to bring long-term stability to the funds and reduce the need for similar supportive legislation in the future.
A Message of Commitment and Social Justice
Minister Meydari underscored the broader social implications of the bill, stating that it sends a clear message about the government’s determination to uphold the dignity of its human resources. He noted that ensuring livelihood stability and providing certainty about the future strengthens the trust between employees and the state’s administrative system.
The reform is framed as a direct implementation of the country’s overarching social security policies, which focus on eliminating unjust discrimination, creating a comprehensive and efficient social security system, and establishing fairness and uniform insurance rules.
Having been prepared through precise expert proposals from relevant administrative and welfare bodies, the bill will now be sent to the Islamic Parliament of Iran to complete the legislative process before its official implementation.