The price of one gram of gold in Iran has increased by more than 11,600% in just one decade, reaching over 111.4 million rials (approximately $97). Based on this, the monthly minimum wage for workers covered by Iran’s labor law is not even enough to buy one gram of gold.
The state-run Khabar Online website reported on Saturday, October 11, that the average price of one gram of gold in October 2015 was 950,000 rials (approximately $0.82).
The outlet added, “The minimum wage for workers covered by the law in 2015 was 7.12 million rials (approximately $6.1), which was equivalent to the value of 7.4 grams of gold that year.”
Iranian Workers’ Wages Have Fallen By 261% In Less Than Ten Years
In contrast, the current minimum monthly wage is 103 million rials (around $90), which, at best, is enough to purchase only 0.9 grams of gold.
According to Khabar Online, while the price of gold in Iran has risen by 11,600% over the past decade, the minimum wage during the same period has only grown by about 1,345%.
The minimum wage for workers covered by the labor law is determined annually by the Supreme Labor Council, which is affiliated with the Ministry of Cooperatives, Labor, and Social Welfare.
According to two clauses in Article 41 of Iran’s labor law, the minimum monthly wage of workers must be determined based on the inflation rate and the cost of living for a worker’s household.
Nevertheless, independent labor activists and unions have consistently pointed out that the Supreme Labor Council ignores the second clause when approving wage decisions.
The state-run ILNA news agency wrote on October 7, referring to the devaluation of the national currency and the government’s “wage suppression” policies: “While the value of the dollar has jumped by an astonishing 33.5 times, the minimum wage approved by the Supreme Labor Council has increased only a little more than tenfold, from 8.12 million rials (about $7) in 2016 to about 104 million rials (around $91) this year.”
ILNA added, “The minimum wage for workers, excluding benefits, is only $91 this year. Even if we include all general wage benefits, it might reach around $110.”
The minimum wage for workers covered by the labor law, including benefits, is about 150 million rials (approximately $130).
According to labor media and trade unions, this wage and its accompanying benefits are not paid to hundreds of thousands of workers employed in small, informal workshops that are not covered by the labor law.
Khabar Online further wrote, “The lightning-fast rise in gold prices over just 10 years has made this investment commodity unattainable for Iranian households.”
According to the report, the rise in gold prices has been driven by two factors: the increase in the domestic dollar exchange rate and the significant rise in global gold prices.
In recent weeks, runaway inflation and rising foreign exchange rates have heightened concerns over Iran’s worsening economic situation—a trend that has intensified following the reactivation of the UN “snapback” mechanism and the reinstatement of UN sanctions against Tehran.
