According to estimates by economic and social experts, the relative poverty line in Iran has reached approximately 350 million rials (about $370) per month. This figure highlights the deep gap between the income of wage earners and the actual cost of living in the face of severe inflation. Currently, the minimum wage for a worker with two children is around 110 million rials (about $116).
Educational Poverty in Iran Exacerbated by Structural Problems
The Poverty Line Must Be Defined Before Setting Wages
Hamid Haj Esmaeili, a labor market expert, told the state-run Khabar Online that before making any decisions regarding the minimum wage, the government must first define the poverty line as a clear and reliable economic indicator. He stressed the need for the government and statistical institutions such as the Statistical Center of Iran and the Central Bank to have the courage to present a realistic definition of the poverty line, arguing that “without this step, negotiations on setting the minimum wage will be fruitless.”
The Official Inflation Rate Is Vastly Different from Economic Realities
Haj Esmaeili warns that if the current trend continues, the wages set by the government will in no way be sufficient to cover the cost of living for Iranian families. Furthermore, he argues that the official inflation rate reported by the government is an ineffective metric for calculating living expenses due to its significant discrepancy with the actual economic realities of society.
Esmaeili predicts that “next year, with rising inflation and increasing prices of essential goods, the economic pressure on the people will multiply.” This means that the poverty line will exceed 350 million rials. Currently, some government-affiliated economic experts estimate the poverty line to be around 400 million rials (approximately $422). Given the rising dollar exchange rate and the depreciation of the national currency, it is likely that the poverty line will surpass this amount.
While the Iranian regime seeks to cover up the economic crisis and widespread poverty, the Iranian people are becoming increasingly aware of the deep injustice and inequality imposed by the ruling establishment. The poverty line and the decline in purchasing power are clear indicators of the total failure of economic policies and the entrenched corruption within the regime’s structure.
Setting the minimum wage based on unrealistic statistics is merely an attempt to deceive public opinion and prevent uprisings and protests. Under these circumstances, there is no solution other than an uprising against this regime. This government is not only incapable of resolving the economic crisis but also relies on deepening poverty, expanding repression, and destroying people’s hope for the future to maintain its rule.
