Iran Approves Landmark 40% Pension Boost for Public Sector Retirees
In a significant move to enhance social welfare, the Iranian government has approved a new measure that will substantially increase pension benefits for its public sector employees upon retirement.
A Structural Reform for Pension Sustainability
The Minister of Cooperatives, Labour, and Social Welfare, Ahmad Meydari, announced that the cabinet has approved a bill designed to create a more stable and transparent public sector payment system. The core of this reform involves recalculating the pension base to include certain welfare benefits and overtime payments, which were previously exempt from pension deductions.
Securing a Stable Future for Retirees
Minister Meydari emphasized that this strategic decision is fundamentally aimed at preventing a sharp decline in employees’ income after they retire. He stated that this structural evolution will ensure that the pensions of government retirees do not face a severe drop in the coming years.
Tangible Benefits for Current Employees
A direct and immediate outcome of this bill will be a notable increase in future pension payouts. The Minister confirmed that with the implementation of this measure, the retirement pensions of current government employees are projected to rise by approximately 30 to 40 percent. This adjustment is designed to align retirement benefits more closely with the actual payment levels received during an individual’s employment.
