Iran Implements Targeted Subsidy Reforms: A Guide to the New Economic Criteria
In a significant move to refine its social support system, Iran is advancing a policy of targeted subsidies. The government has defined clear economic criteria to identify and phase out cash subsidy payments to higher-income households, redirecting support to those most in need.
Key Eligibility Criteria for Subsidy Exclusion
The new framework establishes four primary economic indicators to determine exclusion from the subsidy roster. Households meeting any of the following criteria will have their subsidies phased out:
- International Travel: Households with more than five international trips within a one-year period.
- High-Value Property: Households whose total property assets exceed 35 billion tomans.
- Luxury Vehicles: Households owning one or more vehicles with a combined value of 30 billion tomans.
- High Net Income: Households with a monthly net income per capita (after deducting housing rent expenses) exceeding 10 million tomans.
Detailed Income and Transaction Thresholds
Supplementing the main criteria, the plan also outlines specific monthly income and banking transaction ceilings. These thresholds vary based on household size to ensure fairness and accuracy in assessment.
Average Monthly Income Ceiling:
- 1-Person Household: 30 million tomans
- 2-Person Household: 37 million tomans
- 3-Person Household: 45 million tomans
- 4-Person Household: 52 million tomans
- 5-Person Household: 60 million tomans
Average Monthly Transaction Ceiling:
- 1-Person Household: 50 million tomans
- 2-Person Household: 60 million tomans
- 3-Person Household: 75 million tomans
- 4-Person Household: 87 million tomans
- 5-Person Household: 100 million tomans
Phased Implementation and Current Progress
This initiative is part of the government’s mandate under the national budget law for the current Iranian year (1404). The process began at the start of the year with the removal of subsidies for the top tenth decile of income earners.
Recent data indicates substantial progress. In the past month alone, approximately three million individuals from deciles 4 through 9 were removed from the subsidy list. This brings the current number of recipients to roughly 46.5 million, down from nearly 49.6 million the previous month. The government’s stated goal is to complete the phased removal of subsidies for the top three deciles (an estimated 18 million people) by the end of the current year.
Ensuring Accuracy and Addressing Concerns
The government acknowledges the complexity of accurately categorizing millions of households. To address potential errors, citizens who have concerns about their classification or the removal of their subsidies are directed to contact the Ministry of Cooperation, Labour, and Social Welfare through its dedicated “Hamayat” system or via a designated hotline (021-6369).
Separately, the Targeted Subsidies Organization handles other subsidy-related matters—such as registration, bank account details, and changes in family status—through its hotline (021-43857) or in-person visits.
This policy represents a concerted effort to optimize the nation’s welfare resources, ensuring that financial support is directed with greater precision to strengthen the social safety net for its intended beneficiaries.