The livelihood situation of workers in Iran has entered a worrying stage. The continuous rise in the prices of essential goods has widened the gap between household income and expenses.
According to a report published by the state-run Khabar Online news website on August 9, millions of workers are waiting for a decision by Iran’s Supreme Labor Council by mid-September. Under Article 10 of the council’s resolution, it is required to review changes to the benefits of workers covered by Iran’s labor law.
This decision has become significant as living costs have risen faster than workers’ incomes. The labor community now expects the review to result in a real increase in take-home pay. However, it remains unclear how much the September decision can compensate for workers’ declining purchasing power.
Workers’ purchasing power under pressure from food inflation
Statistics published by the Statistical Center of Iran provide a clear picture of the pressure from living costs. According to the figures cited in the report, annual inflation for the food and beverages category has reached 66%. Among essential goods, some items have seen even steeper price increases. Cooking oil tops the list with 162% inflation. Bread and cereals have experienced 122% inflation, while dairy inflation has reached 99%.
The consequence of this situation is not limited to reduced purchasing power. Changing consumption patterns have also become one of the results of rising prices. Households are shifting toward cheaper goods, while lower-income families are being hit the hardest.
Food vouchers; fixed support against changing prices
Food vouchers are another key issue in discussions about workers’ livelihoods. According to the state-run Khabar Online report, the amount of this support has remained unchanged from January to August this year. During the same period, food prices continued to rise. As a result, the real value of this support has declined over time. Simply put, a fixed voucher amount cannot keep pace with changing market prices.
The new phase of food voucher distribution also began on August 6. Nevertheless, the main issue remains the level of support and whether it matches the actual cost of a household’s food basket. For working families, purchasing power depends not only on wages. Benefits, livelihood assistance, and the cost of the household consumption basket also play decisive roles. If these components do not keep pace with inflation, nominal income increases will have only a limited effect.
Can the September decision restore workers’ purchasing power?
Vahid Hajizadeh, a labor relations expert, has emphasized the importance of reviewing workers’ benefits in light of rising living costs. The main issue now is how this review will be implemented. In recent years, Iran’s economy has seen a significant gap between income growth and rising household expenses. Under such conditions, annual wage decisions do not keep pace with the speed of price increases.
If food prices rise sharply over a short period, workers’ purchasing power also declines quickly. As a result, even wage increases can lose their impact without complementary mechanisms. This situation also has social consequences. Reduced purchasing power limits household consumption, and lower consumption can reduce quality of life. The continuation of this trend also places greater pressure on the middle and lower-income classes.
From an economic perspective, the issue is not simply increasing a figure on a paycheck. The main challenge is preserving the real value of workers’ income against inflation. Without such an approach, the gap between wages and living costs will continue to grow.
Today, workers’ purchasing power is not merely an economic indicator; it is a measure of the livelihood conditions of a large segment of society. Inflation data show that the greatest pressure has fallen on essential goods. Under these circumstances, the Supreme Labor Council’s decision in September carries particular significance. If the review of benefits fails to narrow the gap between income and expenses, livelihood pressures will continue. For workers, the issue is no longer simply higher wages. The central issue is whether income from work can provide even a minimum standard of living.
