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Consequences of Unstudied Laws | Reduction of Construction Workers' Insurance Premiums; Parliament Representatives: We Have Requested an 'Interpretation'

Feb 5, 2026 February 5, 2026 4 min read 📰 VOA Persian
📋 Key Takeaway

The Iranian Parliament has acknowledged flaws in the social insurance law for construction workers and is seeking to amend it due to widespread criticism. The Social Security Organization's continued reliance on the flawed law has led to increased insurance costs and worsened conditions for workers. This situation highlights ongoing issues in labor rights and economic stability in Iran.

🔍 Quick Context Guide
💡 Bottom Line: The Iranian Parliament's attempts to amend flawed labor laws reflect deep-rooted issues in worker rights and economic management.

👥 Key Players

Islamic Consultative Assembly MENTIONED
Legislative body of Iran
"They are responsible for creating and amending laws, including those affecting labor rights and social insurance."
Social Security Organization MENTIONED
Government agency managing social insurance
"They implement laws related to social insurance and have a direct impact on the welfare of workers."
Akbar Shokat MENTIONED
Head of the Iranian Construction Workers' Union
"He represents the interests of construction workers and highlights their challenges regarding insurance and labor rights."
Ali Babaei MENTIONED
Head of the Labor Faction of the Islamic Consultative Assembly
"He has criticized the legislative process and highlighted corruption within the Assembly regarding labor laws."

📰 What Happened

The Iranian Parliament has recognized flaws in the social insurance law for construction workers and is seeking to amend it amidst criticism. The Social Security Organization continues to apply the flawed law, leading to increased costs and worsening conditions for workers.

  • The insurance premium for urban construction workers is set at 25% of total fees, while for rural areas it is 10%.
  • There are approximately 5 million underground workers in Iran without insurance.

💡 Why It Matters

🇮🇷 For Iran: This situation underscores the ongoing struggles of workers in Iran, highlighting issues of labor rights and economic stability.
🌍 Regional: Labor unrest in Iran could influence regional stability and economic relations.
🌐 International: International observers may view these labor issues as indicative of broader governance and human rights challenges in Iran.

📚 Background

Iran's labor laws have historically been criticized for inadequacies, impacting workers' rights and economic conditions. The construction sector is particularly affected due to its reliance on a large number of uninsured workers.

Labor rights in Iran Economic conditions and inflation in Iran
📡 Source: STATE MEDIA
📊 Confidence: 70%
The article reflects the perspective of state media, which may emphasize government actions while downplaying criticism.

While members of the Islamic Consultative Assembly have acknowledged that parts of the social insurance law for 'construction workers' are flawed, the Social Security Organization continues to use it as a basis for calculations, further infringing on the rights of these workers. According to Iranian media, following opposition and criticism of the 'glaring flaws' in this law, the Islamic Consultative Assembly has approved an urgent proposal for an 'interpretation of Article 5 of the social insurance law for construction workers' to facilitate its amendment. Accordingly, individuals whose insurance debts were restructured between the validity of the previous law from January 25, 2023, to October 25, 2024 (regardless of whether they issued checks or promissory notes) or who have made written commitments, will have the remaining percentage of their debts subject to the 'current law.' A request for 'legal interpretation' from authorities who have the 'right to interpret' under the laws of the Islamic Republic is referred to as an interpretation request. According to current laws, the 'Guardian Council' has the right to interpret the constitution based on Article 98 of the Constitution of the Islamic Republic of Iran, and the Islamic Consultative Assembly also has the right to interpret ordinary laws based on Article 73 of the same law. However, the Assembly's interpretation of ordinary laws is also subject to the oversight of the Guardian Council and must be approved by it. Some experts in this field have stated that the controversial amendment to 'Article 5' of the social insurance law for construction workers in January 2023 led to an 'increase in insurance costs for workers,' which covertly caused 'delays in construction operations.' Akbar Shokat, the head of the Iranian Construction Workers' Union, also stated on November 20 that the 'new construction workers' insurance law' has not yet impacted the 'insurance process for construction workers,' and even the situation has become 'worse than before' with the issuance of new directives. Meanwhile, many economic activists who expected a 'reduction in insurance premiums' did not approach the Social Security Organization, and some who faced time loss due to 'cold weather' were forced to continue working by paying 'part of the insurance premium.' According to the state news agency 'ISNA,' last month (October), the 'Social Security Organization' changed the method of calculating the 'employer's share' of insurance premiums for construction workshops based on a resolution of the Islamic Consultative Assembly and implemented it in the non-face-to-face system of the Social Security Organization. This action by the state agency resulted in the insurance premium for urban areas being set at '25 percent' of the total fees and for rural areas at '10 percent' of the total fees. Additionally, the insurance premium for the government project 'National Housing Movement' was set at '15 percent' of the total fees, and for other areas such as earthquake-affected regions, it was announced as 'without insurance premium calculation.' The intensity of opposition to this ambiguous resolution was such that Ali Babaei, the head of the Labor Faction of the Islamic Consultative Assembly, also stated in July in response to the 'construction workers' insurance resolution' that there is a 'mafia' in the Assembly. He criticized the approach of other representatives regarding the construction workers' insurance resolution, stating that the only law that has not only not been implemented after 40 years but has also been abolished is this law, which indicates that 'the mafia is still present in the Assembly.' A government-supporting news agency acknowledged that workers' wages cover only 40 percent of living expenses. Protests regarding the situation of retirees have increased; media reports emphasize the necessity of maintaining the 'legal coefficient' at retirement. Ambiguity in living conditions; the path to the poverty line; a 200 percent increase in wages. A union official stated that there are 5 million 'underground' workers without insurance. Bread at the cost of life; the continuation of worker deaths due to 'unsafe' working environments. The new construction workers' insurance law; a union activist stated that the situation has become 'worse than before.'

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Translated from the original and edited for English readers. View original source →

Translation confidence: 85%

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