Title: A Look Ahead: Projecting Iran’s 2026 Pension Increase and Adjustment Plan
A Guide to the Upcoming Social Security Pension Boost
The process for determining annual pension increases for Iran’s retirees is set to follow its established legal pathway. Contrary to being tied to the annual budget law, the specific rate of the pension boost is typically finalized in the Iranian month of Esfand (February-March), following a decision by the Supreme Labor Council and subsequent approval by the Council of Ministers.
Recent Trends and 2026 Projections
An analysis of recent years reveals that pension increases have fluctuated between 20 and 45 percent. Historically, retirees receiving the minimum pension have seen a higher percentage increase, while other pension brackets have experienced average growth of 25 to 35 percent. Based on this trend, the pension adjustment for the Iranian year 1405 (2026) is expected to fall within a similar range, with minimum-wage pensioners again anticipated to receive a larger proportional increase.
Ongoing Pension Harmonization Initiative
Beyond the annual increase, a significant pension “harmonization” plan will continue into the next year. Banafsheh Mahmoudian, the Director General of Pensions at the Social Security Organization, announced that over 320 trillion Rials were allocated for this harmonization initiative in 2024.
The implementation of this plan began in November 2023. “During this period, the harmonization for the first two years has been completed for more than 4.7 million retirees,” Mahmoudian stated. “According to the plan, this process will continue in 2026 so that by the end of the third year, 90 percent of the pension coefficient gap, relative to the minimum wage at the time the pension was established, will be compensated.”
A Legal and Financial Commitment
The official emphasized that, in accordance with Iran’s Seventh Development Plan law, pension funds, including the Social Security Organization, are mandated to continue the pension harmonization within the framework of approved credits.
The estimated monthly cost of the harmonization plan in 2024 was approximately 55 trillion Rials, covering both new harmonization payments and increased payments from the previous year. While this initiative places a significant financial burden on the organization, it plays a crucial role in improving the purchasing power and livelihood of retirees.
In summary, the anticipated pension increase for 2026 is projected to remain within the 20-45 percent range, while the continued rollout of the harmonization plan is expected to provide an additional boost to retirees’ incomes.