The cabinet of ministers agreed on Wednesday to allocate $150,000 or the equivalent in euros to the families of each victim of the doomed Ukrainian plane crash, IRNA reported.
According to the Iranian vice president for legal affairs, the government will pay the compensation to the victims' families as soon as it is provided based on the reports and documents.
The Iranian Ministry of Roads and Urban Development is reportedly tasked with paying the compensation in cooperation with other governmental sectors.
In comments in August, Deputy Foreign Minister for International and Legal Affairs Mohsen Baharvand said international documents and treaties would be the criteria for the sum of compensation that Iran is going to pay the families of victims.
The Kiev-bound UIA Boeing 737 crashed shortly after taking off from Tehran on January 8, killing all 176 people on board, mostly Iranian and Canadian citizens.
Iran said the plane was hit by an anti-aircraft missile due to human error.