Ayat Asadi, a member of the Iranian regime’s Supreme Labor Council, announced that the government will impose a 10% tax on wages exceeding 100 million rials (approximately $163), and based on this, wage increases for workers will be less than 30%.
According to ILNA news agency, Asadi stated that it was planned to reconsider the issue of calculating wages exceeding 100 million rials among taxpayers subject to the 10% tax, through a bill to be sent by the Minister of Labor, but there is still no news of this bill.
Asadi emphasized that discussions on deductions, insurance, and taxes on wages practically limit the increase in minimum wages to less than 30% and less than 20% for other levels.
According to him, taxes on earnings are still exempted based on less than 100 million rials, so the majority of wage earners must deduct 10% tax from their income.
Asadi noted that this is a statistical game to say that wages have mainly reached 110 or 120 million rials (approximately $180 to $196).
According to the approved wage resolution of the Supreme Labor Council, which was only ratified by the representatives of the government and employers, the minimum wage of workers covered by the labor law has increased by 35.3% compared to the previous year.
The increase in wages for other levels was also determined to be 22% plus a monthly fixed amount of 6.9 million rials (approximately $11.5). Considering other wage items, the minimum received by workers covered by the labor law, married and with two children, will be 111.07 million rials (approximately $181.5) next year.
Also, the minimum wage for workers covered by the labor law, married with one child, has been set at 108.92 million rials (approximately $176.5).
The determination of these wages by the representatives of the government and employers has faced widespread protests from labor unions.
The latest “official calculations” indicate that the cost of living basket in the current year has been over 220 million rials (approximately $359.5). However, other figures such as 250 million have been announced (approximately $408.5).
In this regard, the state-run Tasnim News Agency wrote on March 13 that “according to the announced statistics, the poverty line for a four-member household is about 250 million rials ($408.5).”
This is while citizens and many economic experts consider the poverty line, given the nearly 50% inflation, to be at least 300 million rials (approximately $490).
