In an interview with the state-run Econegar website Farshad Momeni, an economist and university professor, described the economic situation of the Iranian people as critical.
He pointed out that 30% of the country’s population is below the poverty line, stating that another 40% are on the verge of falling below the poverty line with the current methods of wage determination.
The economist, noting the insistence of employer representatives on considering a 140 million rials (approximately $236) livelihood basket for workers, added: “Since the government, as a major employer, leans towards employers, there is a possibility that this year, like last year, they will have to confront wage determination based on the inflation rate.”
He emphasized, “Today, due to the government’s economic policies, we are facing a very dangerous and alarming tsunami of poor workers in Iran’s political economy. The heads of over 60% of the country’s poor households are actively working, indicating an extraordinary scoring for rent-seekers and usurers, causing a severe crisis in the national production structure.”
“When it comes to the hijab, officials say we don’t care if it’s religious or non-religious; it’s the law. We also say, unless the same law states in determining the minimum wage, the government officials compensate for the lost purchasing power due to the officially announced inflation rate, how can official authorities say not to compensate for the lost purchasing power of the workforce, as they are exposed to the wage and inflation spiral?” Farshad Momeni also stated.
Representatives of workers, employers, and the government all express different opinions before deciding on the minimum wage. However, ultimately, they all overlook the two components of inflation and the livelihood basket in labor law and only consent to the amount of calories needed to survive below the poverty line.
The minimum wage for workers in 2023 was about 80 million rials (approximately $135), while according to official statistics, the normal cost of living for people has been announced to be between 250 to 300 million rials (approximately $421 to $505). Workers’ representatives for 2024 demand the determination of a 190 million rials (approximately $320) livelihood basket, but employer representatives insist on considering a 140 million rials (approximately $236) livelihood basket.
On Tuesday, March 12, a group of retirees nationwide gathered in protest of the living conditions and the authorities’ indifference to their demands in several cities in Iran. Simultaneously, there were reports of worker strikes in Aghajari, protests by nurses in Rafsanjan, and the gathering of municipal employees in SarPol-e Zahab.
The continuation of economic protests in Iran occurs while, according to official statistics from the regime’s Statistics Center, in the three years since the inauguration of the Raisi government in 2021, basic commodity prices have grown between 125% and 290%.
