Minister of Labor Claims: Pension Funds are the Reason for 40% Inflation

The Statistical Center of the Islamic Republic of Iran announced on Thursday, December 1, that the monthly inflation rate increased by 0.9% in November, reaching 2.8%, while the annual inflation rate for households in the same month reached 33.1%. Simultaneously, Ahmad Meidari, the Minister of Cooperatives, Labor, and Social Welfare, claimed that pension funds are the cause of inflation in Iran. This minister in the government of Masoud Pezeshkian stated: '50% of the budget deficit in 1403, which has caused 40% inflation, is due to government support for pension funds.' The report from the Statistical Center regarding the inflation rate, especially in the food sector, was published at a time when a significant portion of society, including workers, retirees, and even educators, are facing challenges in meeting their basic livelihood needs. Accordingly, in recent months, there has been a significant increase in protest gatherings regarding living conditions. A major portion of these gatherings concerns retirees who, while protesting their economic difficulties, are demanding the implementation of laws and the resolution of the pension funds' crisis. Meanwhile, the Minister of Labor of the Islamic Republic, in his remarks, implicitly identified these funds and retirees as the main cause of inflation in Iran without mentioning the ongoing protests of retirees and their criticisms of the government's management of pension funds, stating: 'The retirement age in many countries should be 60 years with 40 years of work to receive a high pension, but in Iran, individuals have retired with 20 to 25 years of work experience.' Ahmad Meidari also claimed that 50% of the budget deficit in 1403, which has caused 40% inflation, is due to government support for pension funds. This claim comes at a time when the main cause of the crisis of retirees and pension funds has been the economic governance method in the Islamic Republic. In this context, the former CEO of the Social Security Organization stated in August of this year to ISNA: 'After the victory of the revolution, the challenges of pension funds intensified to the extent that there is now a serious imbalance in pension funds, and consequently, the Social Security Organization is also on the edge of a knife.' Mehdi Karbasian emphasized that government interference and the preferences of various ministers and members of parliament are the most important factors leading to problems in the field of retirement and social security. Labor and retirees' organizations have repeatedly pointed out that the excessive withdrawals by various governments of the Islamic Republic of Iran from the assets of pension funds and the failure to timely return their claims have caused problems in fulfilling their obligations to retirees. In this regard, some experts believe that tax exemptions for institutions under the supervision of the Supreme Leader, large budget allocations to governmental cultural and propaganda institutions, and the significant increase in military budgets alongside extensive support for proxy groups of the Islamic Republic are issues that have exacerbated economic problems in Iran, such as inflation.