An analysis of past performance, current status, and the provision of recommendations for reforming commitment-related regulations
Abstract
Social security systems in most countries provide a form of economic security for the individuals they cover. One of the main objectives of establishing such institutions is to offer support and protection to economically vulnerable segments of society. Given its role in delivering social services, the social security system is considered an important indicator of societal development, which itself is a component of human rights and a socio-economic necessity in today’s world. In Iran, the Social Security Organization serves as the central insurance institution and, within a participatory framework, provides legal services and support to a large number of its beneficiaries.
Assessment of Past Performance and Current Status of the Social Security Organization
Rising government obligations have caused mounting debts and operational deficits in the Social Security Organization. By 2031, it may cover only one-third of its commitments. Reforming and limiting legal obligations is essential for financial stability.
Proposed Measures for Reforming Commitment-Related Laws
To improve the financial structure of the Social Security Organization, legal measures are proposed to eliminate loss-making obligations
- 3% & 2% Insurance Contributions: Limit or eliminate the government’s share, cap contributions at a wage threshold, or use means-testing.
- 5-Worker Production Units: Reduce eligible employees, limit exemptions to the minimum wage, and apply means-testing.
- Military Service Contributions: Reduce government share and allocate exemptions based on minimum wage or means-testing.
Recommendations and Requirements for the Social Security Pension Fund
The Social Security Fund should manage assets effectively, coordinate with the government on pensions, and implement reforms gradually. The government must avoid new obligations and settle debts to ensure financial stability.
This study was conducted at Development and Foresight Research Center By Mozhgan Khanlou Savojbolaghi and Hamidreza Morshedkhani in 2024.
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