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Iran Pension Guide

the Iran Social Security Organization (SSO) defined benefit pension system for 2026. The guide covers: the retirement age 60 for men (with 25+ contribution years) and 55 for women (with 20+ contribution years); the early retirement at 50 for men (30+ years) and 45 for women (20+ years); the pension formula of average of the last 2 years' salary × years of service × 3.5%; the minimum pension floor; the survivor's pension; and the occupational hazard coverage.

Normal Retirement Conditions

  • Men — age 60 with 25+ contribution years: A male employee qualifies for the normal old-age pension (the "بازنشستگی" — the "retirement") at age 60 with at least 25 full years of SSO contributions. The condition is cumulative — both the age and the contribution period must be satisfied.
  • Women — age 55 with 20+ contribution years: A female employee qualifies for the normal old-age pension at age 55 with at least 20 full years of SSO contributions. The lower age and the shorter contribution period reflect the earlier retirement age for women in Iran.
  • Reduced age alternative: An employee who has completed at least 30 years of SSO contributions may retire at any age (men and women alike). The 30-year rule provides an alternative pathway for those who started contributing early in their career.

Early Retirement Conditions

  • Men — age 50 with 30+ contribution years: A male employee may retire early at age 50 if he has completed at least 30 years of SSO contributions. The early retirement pension is calculated using the same formula but with a reduction factor (typically 2-5% per year below the normal retirement age).
  • Women — age 45 with 20+ contribution years: A female employee may retire early at age 45 if she has completed at least 20 years of SSO contributions. The early retirement reduction factor applies similarly.
  • Hazardous and arduous work: The employees engaged in hazardous or arduous work (the "مشاغل سخت و زیانآور" — the "hard and harmful occupations") may retire 5 to 10 years earlier without the reduction penalty. The list of eligible occupations is defined by the Ministry of Labour.

Pension Formula

  • Formula: The monthly pension amount is calculated as: Average of the last 2 years' salary × Years of service × 3.5%. The average salary is the average of the gross monthly salary (subject to SSO contributions) during the last 24 months of employment.
  • Example: An employee with an average salary of IRR 100,000,000 in the last 2 years and 30 years of service receives: IRR 100,000,000 × 30 × 3.5% = IRR 105,000,000 per month.
  • Minimum pension floor: The SSO guarantees a minimum pension amount (the "حداقل مستمری" — the "minimum pension") which is updated annually. For 2026, the minimum pension floor is set at approximately IRR 80,000,000 per month (subject to official announcement).
  • Maximum pension ceiling: The maximum pension is capped at a percentage of the contribution ceiling. The cap ensures that the pension does not exceed a reasonable multiple of the minimum wage.

Survivor's Pension

  • Eligibility: Upon the death of a pensioner or an insured person who had completed at least 1 year of contributions, the surviving dependents are entitled to a survivor's pension (the "مستمری بازماندگان" — the "survivors' pension").
  • Spouse: The surviving spouse receives 50% of the deceased's pension. If the surviving spouse remarries, the pension is suspended but may be reinstated upon divorce or the death of the new spouse.
  • Children: Each child receives 25% of the deceased's pension (the total paid to all children may not exceed the deceased's pension amount). The children are eligible until age 18 (or 25 if studying, or indefinitely if disabled).
  • Parents: The dependent parents of the deceased may also qualify for a survivor's pension if they have no other means of support.

Occupational Hazard Coverage

  • Work-related injury and disease: The SSO provides comprehensive coverage for the work-related injuries and the occupational diseases (the "حوادث ناشی از کار" — the "work-related accidents"). The coverage includes the full medical treatment, the rehabilitation costs, and the disability benefits.
  • Temporary disability: If the employee is temporarily unable to work due to a work-related injury, the SSO pays a temporary disability benefit of 66.67% of the average salary for up to 12 months.
  • Permanent disability: If the employee suffers a permanent disability (the "ازکارافتادگی" — the "disability"), the SSO pays a lifetime pension calculated at 50-100% of the average salary depending on the degree of disability (partial or total).

FAQs

Can I receive a pension while working?

No. The SSO old-age pension requires the cessation of employment covered by the SSO. However, a pensioner may engage in self-employment or work that is not subject to the SSO without losing the pension.

Are pensions indexed for inflation?

Yes. The SSO pensions are adjusted annually (typically in March, at the start of the Iranian calendar year) based on the inflation rate and the cost of living adjustments determined by the Supreme Labour Council.

Can foreign workers receive an SSO pension?

Yes, provided they have a valid work permit and have completed the minimum contribution period. However, foreign workers may face restrictions on transferring the pension abroad unless a bilateral social security agreement exists.

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