Iran Announces Major Pension Adjustment Plan for Social Security Retirees in 2025
In a significant move to enhance social welfare, Iranian authorities have detailed a comprehensive plan for the adjustment of pensions for Social Security Organization retirees, with full implementation targeted for the year 1405 (2025/2026). The initiative underscores the government’s commitment to safeguarding the economic well-being of its retired citizens.
A Legal Mandate for Pension Adjustment
The Director-General of Pensions at the Social Security Organization, Benafshe Mohammadian, confirmed that the process is being executed in accordance with binding legal statutes. The adjustment is a direct result of mandates within the country’s development framework, specifically the Seventh Development Plan, which legally obliges the organization to harmonize pension payments.
The plan is designed to systematically address and compensate for the gap between pension coefficients and the minimum wage at the time the pension was established, aiming to recover 90% of this disparity by the end of the plan’s third year.
A Three-Phase Implementation Strategy
The adjustment is being rolled out in a structured, multi-phase approach that began in Aban 1402 (late 2023). The process involves:
- Phase One: An annual increase to the 1402 (2023/2024) pension amount.
- Phase Two: Application of the specific 1402 harmonization adjustment.
- Phase Three: The determination and application of the final 1403 (2024/2025) adjustment figure.
For minimum-wage pensioners, the 1402 pension amount is multiplied by a factor of 1.45. For other pension tiers, a factor of 1.32 is applied along with a fixed sum of 9,316,500 Rials.
Financial Commitment and Future Outlook
The government’s commitment to this policy is reflected in the substantial financial resources being allocated. The monthly cost of the adjustment has seen a significant year-on-year increase, rising from 2,200 billion Tomans in 1402 to 3,200 billion Tomans in 1403, with projections for the current year reaching 5,500 billion Tomans.
This sustained financial effort highlights the priority placed on ensuring the program’s continuity. The successful management of these resources is pivotal to the long-term stability of the social security system and its ability to meet the needs of Iran’s retiree population, marking a key achievement in the nation’s social and economic planning.
