Iranian Parliament Approves Staged Pension Increase, Affirms Commitment to Retirees
In a significant move addressing the welfare of retirees, Iranian authorities have detailed the implementation plan for pension harmonization, confirming the government’s legal obligation to fulfill these payments.
A Phased Approach to a Major Financial Commitment
Hojjatoleslam Nasrollah Pejmanfar, Head of the Iranian Parliament’s Article 90 Commission, announced that the harmonization of retirees’ pensions will be implemented in a staged manner due to its substantial financial burden. He confirmed that the plan has been approved by the Guardian Council, is now law, and is considered a government debt. The parliament, he assured, will pursue the necessary follow-up for the payment of any remaining balances.
Emphasis on Decentralization and Provincial Management
Shifting to broader governance strategies, Pejmanfar emphasized the importance of delegating authority to provinces for better management. He stated that a gradual transfer of powers from the central government to the provinces should occur, based on the specific experiences and capacities of each region. He highlighted Kerman province as a leading example in sectors such as mining, industry, and automotive manufacturing.
Addressing Systemic Challenges
The official also addressed ongoing challenges, including issues within Kerman’s mining sector—assuring that the lack of a recent physical inspection does not equate to negligence—and the critical financial situation of some pension funds, underscoring the need for fundamental solutions.
Government’s Pledge and Legal Framework
The administration has reaffirmed its commitment. The President recently stated that the pension harmonization plan will be executed again next year, with the government actively working to reduce the problems faced by retirees. He stressed the necessity of preserving the dignity and status of retired citizens.
The legal framework, as per the Seventh Development Plan Law, mandates a structured increase. In the first year, pensions must rise by 40% of the salary of an equivalent active employee. This percentage will rise in subsequent years, ultimately reaching 90% of an active employee’s salary by the third year of the plan. The law is designed to be immune from changes based on the executive preferences of different administrations.
Annual Increases and Favoring Lower-Income Retirees
Annually, pensions for Social Security retirees are increased based on the verdict of the Supreme Labor Council, independent of the yearly national budget. In recent years, these increases have ranged from 20% to 45%, with the highest adjustments consistently directed toward the lowest-income retirees. This progressive trend is expected to continue in the coming years.
Recent Pension Increase Trends:
| Year | Lowest-Income Retirees | Other Retirees |
|---|---|---|
| 2023 | 45% | 35% |
| 2022 | 40% | 30% |
| 2021 | 35% | 25% |
This data reflects the state’s concerted effort to provide enhanced support for lower-income groups and improve the overall welfare of the retired community, a priority reiterated by both government officials and parliamentary representatives.