Tehran, Aug 19 (IANS): Iran is planning to increase pensions by 38% to help offset rising prices and high inflation.

The change is due to take effect at the end of August, according to the social security association, reports dpa news agency.

Currently, most pensioners receive the equivalent of only a few hundred dollars, which is barely enough to survive in urban areas.

Thousands of pensioners suffering amid the economic crisis have protested for higher benefits in recent months, and for support given soaring inflation.

Iran is currently in the midst of a severe economic crisis and food prices have risen dramatically in recent months.

The value of the currency has fallen by more than 50 per cent lately.

However, there are cautious hopes that a revival of the 2015 Vienna nuclear deal could mean the lifting of sanctions on Iran which would end the economic crisis.

The Joint Comprehensive Plan of Action aimed to prevent Tehran from building nuclear weapons came first into effect in 2015.

In 2018 the US, under then-President Donald Trump, decided to unilaterally leave the agreement.

In a diplomatic tour de force, representatives from the US and Iran, as well as other countries, had been trying to revive the agreement in recent months.

A potential deal would result in the removal of US sanctions and the reinstatement of restrictions on Tehran's nuclear programme similar to the 2015 deal.