Iran

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1953.

Current law: 1975.

Type of program: Social insurance system.

Coverage

Employed persons in specified occupations and geographic areas.

Special pension systems for public employees and the armed forces.

Self-employed persons may contribute voluntarily.

Source of Funds

Insured person: 7% of earnings.

Employer: 20% of payroll, plus 3% for unemployment insurance. (The first five employees in small industrial and technical workshops are exempted.)

Government: 3% of payroll. (Also pays employers' contribution for the first five employees in small industrial and technical workshops.)

Maximum and minimum monthly earnings for contribution and benefit purposes for salaried employees are 2,507,400 rials and 696,460 rials, respectively.

The above contributions also finance medical care, cash sickness, maternity, and work injury benefits.

Qualifying Conditions

Old-age pension: Age 60 (men) or age 55 (women); age 50 (men) or age 45 (women) with between 20 and 25 years of work in an unhealthy working environment or in a physically demanding natural environment; at any age (men and women) with 30 years of work.

The minimum qualifying period is 10 years of contributions.

Retirement from insured employment is necessary.

Disability pension: Total disability (2/3 loss of earning capacity) or partial disability (1/3 loss of earning capacity). One year of contributions in the last 10 years, including 90 days in the year prior to the onset of disability.

Survivor pension: Deceased was a pensioner at the time of death or had 1 year's contributions in the last 10 years, including 90 days of contributions in the year prior to death; if the death of the insured was caused by a work-related accident, the survivor pension is paid without any qualifying conditions.

Old-Age Benefits

Old-age pension: 1/35th of average earnings during the last 24 months times the number of years of contributions.

The minimum pension is 50% of earnings but not less than 696,460 rials a month (the minimum wage of an unskilled laborer), plus food coupons.

Spouse allowance: A married male pensioner receives 81,200 rials for his spouse.

The maximum pension is 100% of earnings up to 1,970,000 rials a month.

Permanent Disability Benefits

Disability pension: If totally disabled, 3.3% of average earnings during last 2 years times the number of years of contributions.

The minimum pension is 50% of earnings (60% with dependents), but not less than 696,460 rials a month (the minimum wage of an unskilled laborer).

Spouse allowance: A married male pensioner receives 81,200 rials for his spouse.

The maximum pension is 100% of earnings up to 1,970,000 rials a month.

Partial disability: If between 33% and 66% disabled, a percentage of the full pension proportionate to the degree of incapacity.

Survivor Benefits

Survivor pension: 50% of the insured's pension is payable to a widow of any age or to a dependent widower.

The minimum widow(er) pension is 20% of the insured's pension.

Orphan's pension: 25% of the insured's pension (50% if a full orphan) is payable for each orphan under age 18 (no limit if student or disabled).

Parent's pension: 20% of the insured's pension for each dependent aged parent.

Maximum survivor pension: 100% of the insured's pension.

Minimum survivor pension: 696,460 rials a month (the minimum wage of an unskilled laborer).

Funeral grant: Varies according to municipality.

Administrative Organization

Ministry of Hygiene, Health, and Medical Education provides general supervision.

Social Security Organization, managed by a council and a board of directors, administers the program through provincial branches and local agencies.

Sickness and Maternity

Regulatory Framework

First law: 1949.

Current law: 1975.

Type of program: Social insurance system. Cash and medical benefits.

Coverage

Employed persons in urban areas and persons receiving old age, disability, or survivor pensions. Seasonal workers are covered for medical services during the working season.

Source of Funds

Insured person: See Old Age, Disability, and Survivors, above; seasonal workers contribute 9% of the minimum monthly wage.

Employer: See Old Age, Disability, and Survivors, above.

Government: See Old Age, Disability, and Survivors, above.

Qualifying Conditions

Cash sickness and medical benefits: Currently employed. There is no minimum qualifying period, except for 60 days of contributions for prostheses.

Cash maternity benefits: Sixty days of contributions in the year prior to the expected date of childbirth.

Sickness and Maternity Benefits

Sickness benefit: 75% of average earnings in the previous 3 months for a worker with dependents; 66.6% of average earnings for a single worker.

Benefit is reduced to 50% for an unmarried insured person hospitalized in a Social Security Organization hospital; there is no reduction for an insured person with dependents.

Benefit is payable after a 3-day waiting period (unless hospitalized) until recovery.

Maternity benefit: 66.6% of average earnings in the previous 3 months, payable for up to 4 months before the expected date of childbirth or 4 months after giving birth.

Workers' Medical Benefits

Direct system: Medical care and medicines are provided directly to patients through medical facilities belonging to the Social Security Organization.

Dental grant: 180,000 rials for a half set of dentures or 300,000 rials for a full set.

Other medical expenses are payable according to set tariffs.

Indirect system: Medical services are provided through public and private hospitals and clinics, as well as through university hospitals and contracted-out physicians. The cost of inpatient and outpatient care varies among medical care providers, as does the degree of cost-sharing and the rate of reimbursement.

Dependents' Medical Benefits

Same as for the insured person. Coverage is provided for a wife and for children under age 18 (age 20 if a student, disabled, or an unmarried daughter) or for a disabled dependent husband over age 60, and for aged dependent parents.

Administrative Organization

Social Security Organization administers the program.

Medical services are provided directly through 70 hospitals and 260 medical clinics owned by the Social Security Organization.

Work Injury

Regulatory Framework

First law: 1936.

Current law: 1975.

Type of program: Social insurance system.

Coverage

Employed persons in urban areas.

Source of Funds

Insured person: See Old Age, Disability, and Survivors, above.

Employer: See Old Age, Disability, and Survivors, above.

Government: See Old Age, Disability, and Survivors, above.

Qualifying Conditions

Work injury benefits: There is no minimum qualifying period.

Temporary Disability Benefits

75% of average earnings in the previous 3 months for a worker with dependents; 66.6% for a worker without dependents.

Benefit is reduced to 50% of average earnings if the insured person is hospitalized.

Benefit is payable from the first day of incapacity until recovery or certification of permanent disability.

Permanent Disability Benefits

Permanent disability pension: If totally disabled, 3.3% of average earnings in the last 720 days times the number of years of contributions. The pension should not be less than the minimum wage.

The minimum pension is 50% of earnings for a single worker; 60% for a married worker.

The maximum pension is 100% of earnings but not more than the wage ceiling.

Partial disability: If between 33% and 66% disabled, a percentage of the full pension proportionate to the degree of incapacity.

The minimum pension is 301,530 rials a month.

The maximum pension varies according to the insured's wage, contribution record, and degree of incapacity.

Disability grant: If between 10% and 33% disabled, a lump sum of 36 times the amount of total disability pension times the degree of disability.

Workers' Medical Benefits

Same as for cash medical benefits, above (see Sickness and Maternity), but with no qualifying period for prostheses.

Survivor Benefits

Survivor pension: 50% of the insured's pension is payable to the widow.

Orphan's pension: 25% of the insured's pension (50% if a full orphan) is payable for each orphan under age 18 (age 20 if a student or disabled), and to an unmarried daughter until she marries or becomes unemployed.

Parent's pension: 20% of the insured's pension for each dependent aged parent.

The maximum survivor pension is 100% of the insured's pension.

Funeral grant: Varies according to municipality.

Administrative Organization

Ministry of Hygiene, Health, and Medical Education provides general supervision.

Social Security Organization administers the program through branch offices and local agencies.

Unemployment

Regulatory Framework

First law: 1987.

Current law: 1990.

Type of program: Social insurance system.

Coverage

Employed persons in specified occupations and geographic areas.

Exclusions: Self-employed persons, voluntarily insured persons, retired persons, the totally disabled, and those covered under construction workers' insurance.

Source of Funds

Insured person: None.

Employer: 3% of payroll.

Government: Any deficit.

Qualifying Conditions

Unemployment benefit: Six months of insurance before the date of unemployment. Registered at an employment office and capable of, and available for, work. Unemployment is not due to voluntarily leaving, misconduct, or the refusal of a suitable job offer.

Unemployment Benefits

The maximum duration of benefits depends on the length of coverage and marital status. If a married individual has between 6 months and 24 months of coverage, benefit is payable for up to 12 months (6 months if single); for between 25 months and 120 months of coverage, benefit is payable for 18 months (12 months if single); for between 121 months and 180 months, benefit is payable for up to 26 months (18 months if single); for between 181 months and 240 months, benefit is payable for up to 36 months (24 months if single); for 241 months and longer, benefit is payable for up to 50 months (36 months if single).

The minimum benefit is 55% of average earnings, increased by 10% for each of the first four dependents.

The maximum benefit should not exceed 80% of average earnings.

Insured persons aged 55 or older receive unemployment benefit up to retirement age.

Administrative Organization

Ministry of Labor provides general supervision.

Family Allowances

Regulatory Framework

First law: 1953.

Current law: 1975.

Type of program: Employment-related system.

Coverage

Employed persons.

Source of Funds

Insured person: None.

Employer: Total cost.

Government: None.

Qualifying Conditions

Family allowances: The child must be under age 18 (no limit if student or disabled). The parent must have 720 working days of contributions.

Marriage grant: 720 days of contributions in the 5 years before the date of marriage.

Family Allowance Benefits

Family allowances: Three times the lowest daily wage of an unskilled laborer. (The lowest daily wage is based on the minimum wage of an unskilled laborer (696,460 rials a month) and is adjusted according to region.) The allowance is payable for each of the first two children.

Marriage grant: One month's average wage or salary. If both spouses are insured, the grant is paid to the husband and wife separately.

Administrative Organization

Ministry of Labor enforces the law.

Individual employers pay allowances with wages or salaries.