Title: Iran Refines Cash Subsidy Criteria to Enhance Economic Justice and Target Support
In a significant move to refine its social welfare system, the government of the Islamic Republic of Iran has implemented new, more precise criteria for its national cash subsidy program. The updated framework is designed to better identify high-income households and ensure that financial support is directed to those most in need, marking a strategic shift in the nation’s approach to economic justice.
A Shift in Methodology: From Income to Expenditure
The cornerstone of the new policy is a fundamental change in how household economic strength is assessed. Moving away from traditional income-based models, which were often hampered by unregistered earnings in the informal economy, the government will now primarily evaluate a family’s monthly expenditure. This shift is intended to provide a more accurate and transparent picture of a household’s true financial standing.
Key Criteria for Subsidy Exclusion
Under the revised system, a household’s data will be cross-referenced with banking and asset identification platforms. The primary grounds for exclusion from the subsidy program include:
- High Per Capita Monthly Spending: If the monthly expenditure per family member exceeds 10 million Tomans, the household is classified as high-income. This calculation encompasses costs for food, transportation, healthcare, education, and other essentials.
- Substantial Financial Transactions: High activity in bank accounts, including large deposits and frequent transactions, will be used as an indicator of wealth.
- Asset Ownership and Foreign Travel: Households possessing luxury vehicles, multiple capital assets (such as gold, foreign currency, or property), or those who undertake international travel are also subject to removal from the subsidy roster.
The New “Minor Purchases” Index
A novel feature of this update is the introduction of the “Minor Purchases” index. This metric is designed to simplify economic assessment by tracking everyday household transactions through point-of-sale (POS) terminals. These include routine purchases at supermarkets, bakeries, and for transportation services.
For a three-person household, the combined average of these minor purchases and rent payments over the preceding six months must not exceed 50 million Tomans per month. Breaching this threshold will result in the household being identified as high-income and its subsidy being suspended.
Enhancing Accuracy and Fairness
To prevent errors that could arise from temporary or seasonal spending spikes, the new system relies on a six-month average of expenditure data. This methodological improvement is expected to contribute to greater fairness and a more stable evaluation of a household’s economic situation.
Official statistics indicate that, as part of this ongoing refinement process, cash subsidies for over 8 million individuals had been suspended by the end of the summer of 2024. It is projected that this figure will rise as the new criteria are fully applied. The government has stated that resources saved from suspending subsidies for affluent families will be reallocated to increase support for vulnerable groups.
Channels for Inquiry and Appeal
The Ministry of Cooperatives, Labour, and Social Welfare has established multiple channels for citizens to check their economic decile classification or file an appeal if they believe their subsidy has been wrongly suspended.
Citizens can inquire about their status through:
- The
hemayat.mcls.gov.irwebsite. - The USSD code
#438574[National Code]. - The Ministry’s voice-response telephone lines at 021-6369 or 021-63690920.
- In-person visits to +10 Police Service Centers with their national ID card.
This comprehensive restructuring of the subsidy framework underscores the government’s commitment to optimizing its social safety net, ensuring that national resources reach their intended beneficiaries with enhanced precision and fairness.
