With the continuing rise in inflation and the sharp devaluation of Iran’s national currency, Iranian media have reported that over 80% of Iranian households have fallen below the global poverty line.
The Eghtesad Online website stated that based on the poverty line set by the World Bank for economies comparable to Iran, a three-person household (earning in rials) in Iran’s dollarized economy needs a monthly income of 400 to 500 million rials (approximately $520 to $650) to avoid being considered impoverished.
However, the minimum wage for a married worker in Iran, including all benefits, does not exceed 110 million rials (approximately $143).
Meanwhile, reports from Iran indicate that individuals in positions such as bank manager, department head, section chief, investment manager, and branch deputy earn an average of 353 million rials (approximately $460). Even these high-ranking employees fall significantly short of the global poverty line.
According to reports, the Research Center of the Iranian Parliament previously announced an increase in the poverty rate to 30.1% in 2023, meaning that one-third of Iran’s population is unable to meet their basic needs. Critics believe this figure is significantly higher, and considering the devaluation of the national currency this year and the lack of improvement in purchasing power, they estimate the poverty rate has exceeded 40%.
The Research Center’s analysis also shows that after four years of claimed growth exceeding 4%, the country’s economy contracted by 2.5% in the spring of 2024. This decline was attributed to power outages affecting industries, reduced oil exports, and the government’s contractionary budget policies.
It has been projected that economic growth for 2024 and 2025 will be 2.5% and 2.8%, respectively—well below the 8% target set by the Seventh Development Plan of the regime. This part of the regime’s parliamentary research arm’s report also confirms the lack of a clear outlook for improving the economic conditions of the population.
Reports indicate that in the coming weeks, sessions to determine the minimum wage for the next year will be held. These discussions have raised concerns among activists and the labor community, as estimates suggest the government intends to set wage increases at around 30%.
Inflation forecasts for the upcoming year in Iran exceed 40%, and the persistent mismatch between income and expenses in recent years, combined with income disparity in the coming year, is expected to pose even greater challenges to household livelihoods.
