The state-run ILNA news agency reported that the ever-widening gap between the minimum wage and the cost of living has reached alarming levels. It stated that the officially announced figure of 235 million rials (approximately $248) as the minimum cost of living does not even cover half of the living expenses in medium or large cities this year.
ILNA, quoting labor activist Nader Moradi, stated that a comparison between the minimum wage in 2007 and 2024 highlights a dramatic decline in workers’ purchasing power.
He explained that in 2007, minimum-wage workers could afford to buy a full gold coin with their salary. However, today, their wages barely cover less than half of a quarter of a gold coin.
According to Nader Moradi, the minimum wage for workers in 2007 was 1.83 million rials, and with benefits included, their total earnings reached 2.36 million rials.
At that time, the price of an old-design Bahar Azadi gold coin was 1.72 million rials, and the new-design version was 1.51 million rials. This meant that a worker’s base salary exceeded the price of a gold coin.
He stressed that today, the purchasing power of wages has dropped to one-eighth of what it was in 2007.
Criticizing the wage determination process in the Supreme Labor Council, Nader Moradi stated that the 2025 minimum wage is still being set based on the official inflation rate, even though wages have not kept pace with inflation over the years.
He believes that this wage determination method will further widen the gap between income and living expenses, pushing workers into even harsher economic conditions.
Despite this severe decline in purchasing power, the Supreme Labor Council continues to insist on setting wages based on inflation rates, without considering the real decline in wage value or the cost of living for a household as stipulated in Note 2 of Article 41 of the Labor Law.
According to the report, while the minimum household living cost has reached 500 million rials (approximately $526), a wage increase of around 30% will only widen the gap between income and living expenses.
Meanwhile, Ahmad Meydari, the Iranian regime’s Minister of Cooperatives, Labor, and Social Welfare, has repeatedly emphasized that the 2025 wage will be set in line with the inflation rate.
On Wednesday, March 12, Ahmad Meydari stated: “The 2025 minimum wage will be set close to the inflation rate, which will be announced by the Iranian regime’s Statistics Center.”
According to this center’s report, the 12-month inflation rate ending in February 2025 was recorded at 32.9%.
Currently, the base salary for workers covered by labor laws is approximately 70 million rials (around $74), while the minimum wage for married workers with children (including benefits) is 110 million rials (approximately $116).
