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Iranian legislators approve legislation to increase the retirement age for men.
Economy Middle East

Iranian legislators approve legislation to increase the retirement age for men.

According to state media, legislators in Iran have passed a law that raises the retirement age for men to 62 and increases the number of years of work needed to receive a full pension.

According to the official IRNA news agency, the bill aims to address pension fund deficits by obtaining approval from the Guardian Council, a body dominated by conservatives, before being implemented.

During the Sunday vote in the parliament with 290 seats, 127 voted in favor, 78 voted against, eight abstained, and the rest were not present.

According to IRNA, Mohammad Baqer Qalibaf, the speaker of parliament, announced on Monday that male employees will now need to work for 35 years, instead of 30, in order to receive a full pension upon retirement.

The male retirement age will increase from 60 to 62, while the female retirement age will stay at 55.

The Labor Minister, Solat Mortazavi, expressed the importance of this action in order to guarantee that pension funds are able to fulfill their responsibilities towards recipients.

In the past few months, multiple government representatives have expressed concerns about significant deficits in pension funds. Former Labor Ministry official Sajjad Padam stated in May that Iran may have to resort to selling land to meet pension obligations.

Padam was fired shortly after making a controversial statement.

Iran has been struggling with a severe economic crisis characterized by a 50% inflation rate and a significant devaluation of the rial compared to the dollar.

The situation has been made worse by the United States’ decision to reapply sanctions in 2018 after pulling out of a significant nuclear agreement between Tehran and major countries.