The lives of a significant portion of the Iranian population are marked by uncertainty, largely because the Iranian economy is severely impacted by the dollar. The minimum cost of living is estimated at $500, yet workers’ wages stand at merely $136. (considering the exchange rate as 614,000 rial per USD)
A report from the state-run Tejarat News website has highlighted that since 2017, the minimum wage for an Iranian worker has seen an unprecedented decline in comparison to the dollar, currently set at $136.
If the dollar price remains around 610,000 rials in 2024, the wage will only be $6 higher than it was last year.
However, experts predict that under the current economic conditions in Iran, and barring any political or economic shocks, the average dollar price could reach 700,000 rials this year.
A regional salary survey reveals that Iran, with its minimum wage of $136, ranks the lowest among ten other countries in the region.
It falls behind Azerbaijan and Armenia, which have minimum wages of $200 and $210, respectively. At the higher end, Oman offers a minimum wage of $839, followed by Saudi Arabia at $800, and Bahrain at $790. Turkey has set its minimum wage at $600, Qatar at $493, the UAE at $408, Kuwait at $327, and Iraq at $260.
Notably, these countries maintain inflation stability and ensure that their minimum wages fully cover the costs of a standard living. In Turkey, facing unprecedented inflation, the minimum wage was doubled at the beginning of the new year compared to January 2023 to preserve workers’ purchasing power.
This adjustment by the Turkish government contrasts sharply with Iran’s refusal to increase wages in a manner that reflects the country’s economic conditions, citing inflation concerns.
Alireza Mahjoob, the Secretary General of the House of Workers, a government entity, believes that such government policies will ultimately damage workers’ livelihoods and hinder economic growth.
In a March 25 interview with the regime’s ILNA news agency, Mahjoob stated that economic officials should recognize the long-term anti-inflationary effects of raising workers’ wages, which could also prevent recession.
Mahjoob added that the current wage does not satisfy the needs of the working class, indicating that the government’s approach could exacerbate economic challenges in production and services, complicating the lives of the working class.
In response, labor activist Rasoul Gorgij highlighted that with inflation exceeding 40 percent, the current salaries suffice for less than ten days of living expenses. According to ILNA news agency on March 25, he argued that a 50 percent wage increase is far from adequate under the circumstances.
On March 23, Ayat Asadi, a member of the regime’s Supreme Labor Council, announced a new tax of 10 percent on wages above 10 million tomans, resulting in an under-30 percent increase in workers’ wages.
Asadi furthermore added that although a bill from the labor minister proposes revising the computation of wages above 100 million rials (approximately $164) for the 10 percent tax bracket, no further updates have been announced.
According to the Wage Act of the Supreme Labor Council—approved only by government representatives and employers—the minimum wage for workers subject to labor law increased by 35.3 percent this year.
Other wage levels saw a 22 percent increase plus a fixed monthly sum of 6.9 million rials (approximately $11.4). For workers entitled to labor law, married and with two children, the minimum wage next year will be 111.07 million rials (approximately $182).
This decision has faced significant backlash from labor organizations.
Recent “official calculations” estimate this year’s income basket at over 220 million rials (approximately $360), with other figures suggesting as much as 250 million rials (approximately $410).
The IRGC-linked Tasnim news agency reported on March 13 that the poverty line for a family of four is approximately 250 million rials.
At the same time, some activists and labor associations estimate the poverty line to be more than 300 million rials (approximately $492).
Despite these discussions, the government has announced only a minor adjustment in entitlements.
