Key Takeaways:

• The strategic digital economy commission approved an amendment allowing optional social insurance for ride-hailing drivers.
• Any mandatory insurance requirement was removed to align the regulation with existing law and judicial rulings.
• Platform Snapp offered to assist uninsured active drivers with social insurance enrolment under cooperation with the Social Security Organisation.
• The change aims to avoid fare inflation and a shift back to unregulated offline rides while bringing regulatory clarity to the sector.

Iran Approves Optional Social Insurance for Ride‑Hailing Drivers

Iranian authorities have provisionally approved an amendment that allows internet taxi drivers to opt into social insurance rather than being compelled to enrol. The Strategic Commission on the Digital Economy adopted the change in a meeting attended by the minister of communications, commission members, representatives from the Social Security Organisation and the legal team of the ride‑hailing company Snapp.

optional social insurance for ride-hailing drivers

The amendment revises the executive bylaw of clause “ch” of Article 28 of the five‑year development law. Under the new text, any obligation for ride‑hailing drivers to subscribe to social insurance has been removed and coverage will be provided on an individual, voluntary basis at the driver’s request. Officials said the change restores the original intent of the statute, which authorised insurance but did not mandate it.

Commission sources said the executive bylaw had been slow to appear after the law was passed and, in the interim, some readings of the draft suggested compulsory insurance. Those interpretations were judged inconsistent with higher legislation during the recent review and provisions implying mandatory coverage were struck out.

In the same review, the clause that proposed setting a fixed wage as the basis for calculating social insurance contributions was deleted. The removal followed a ruling by the Administrative Justice Court that flagged the fixed‑wage approach as incompatible with the court’s prior decisions, and officials emphasised the need for the bylaw to sit cleanly alongside existing legal frameworks.

Policymakers argued that forcing all drivers into compulsory social insurance could have unintended economic effects. A mandatory contribution would likely raise operating costs and feed into higher trip fares, a cost that would not necessarily accrue to drivers and would fall primarily on passengers. Officials voiced concern such a move might push some drivers out of platform work and back towards offline services that operate outside current regulatory and safety standards.

The decision seeks to balance social protection goals with market stability. By making coverage voluntary, uninsured active drivers have the option to sign up for social insurance without imposing a blanket obligation that might reduce supply on digital platforms or distort prices. Supporters of the change say it gives drivers agency while preserving the affordability and regulatory reach of ride‑hailing services.

Snapp welcomed the commission’s approval and signalled its readiness to cooperate with the Social Security Organisation to extend insurance coverage to uninsured drivers who wish to enrol. The company framed the offer as part of its commitment to operating within legal boundaries while supporting driver welfare.

The amendment still requires final ratification by the main session of the Digital Economy Working Group. Officials expect any clauses that remain inconsistent with statutory law to be removed before the bylaw takes effect. If confirmed, the change will provide legal clarity for platforms, drivers and regulators and may help stabilise costs and preserve safety standards in Iran’s rapidly growing digital transport sector.

Observers say the move reflects a cautious regulatory approach to the gig economy, favouring voluntary social coverage and collaboration between platforms and social insurers rather than compulsory schemes that could disrupt service supply.