Life in Iran TodayIran: Workers' Wages are One-Third of Poverty Line as...

Iran: Workers’ Wages are One-Third of Poverty Line as Inflation Continues to Skyrocket

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According to a report by the state-run ILNA news agency, on August 27, during the two years of Ebrahim Raisi’s presidency, a minimum of 250% inflation has been imposed on the people’s livelihoods, and workers’ wages are one-third of the poverty line.

The news agency criticized the Deputy Minister of Cooperatives, Labor and Social Welfare for claiming otherwise and wrote that despite inflation in essential goods and the wage gap with the poverty line, officials consider an 87% increase in wages over two years as an “achievement.”

ILNA also reported that the “three worker members of the Supreme Labor Council” have requested the council to convene a session and reconsider the minimum monthly wage of workers. It criticized Ali Hossein Ra’eeti Fard for his firm statement that “wages will not be adjusted.”

The Labor Relations Deputy of the Ministry of Cooperatives, Labor, and Social Welfare has categorically rejected the wage increase for workers, while the “three worker members of the Supreme Labor Council” claim that the promises of the government ministers were to control inflation and increase the minimum wage for workers if inflation is not controlled.

In his remarks, Ali Hossein Ra’eeti Fard announced the poverty line for 2023 as 130 million rials (approximately $260), but this is in a situation where in the meetings of the Supreme Labor Council in the previous year, the proposed figure by the three worker members of the council for the cost of living or the poverty line was more than 180 million rials (approximately $360). At the same time, independent labor organizations demanded a wage of more than 200 million rials (approximately $400) for workers.

At that time, at the time of determining the wages for 2023, the calculations of the wage committee of the Supreme Association of Councils and the opinions of members of Majlis (parliament) indicated that the poverty line had exceeded 220 million rials (approximately $440).

ILNA wrote that today, the minimum poverty line in Tehran is 300 million rials (approximately $600), and in other cities, it is at least 230 million rials (approximately $460). Considering these figures, which are calculated as the bare minimum for an average household of 3.3 people, the minimum wage and benefits of 90 million rials (approximately $180) do not even cover one-third of the poverty line. In other words, even with a 33% wage, the poverty line is not covered.

The published statistics and figures regarding the prices of food items in the past two years show that a minimum of 250% inflation has been imposed on the people’s livelihoods.

However, Sowlat Mortazavi, the Minister of Cooperatives, Labor, and Social Welfare, in response to the renewed request for wage adjustment, stated that the members of the Supreme Labor Council can request a review of the minimum wages of workers, and if requested, it will be put on the agenda.

Earlier, Mortazavi had rejected any promises to revise workers’ wages, and the Administrative Justice Court also announced the dismissal of workers’ complaints, stating that the wages for 2023 were determined based on the law and not subject to workers’ complaints.

Olya Ali Beigi, the head of the Islamic Labor Council, has referred to the request of the workers’ community for a review of wages and stated that they expect the Supreme Labor Council and the government’s economic team to consider the concerns and livelihood issues of the workers.

Ali Beigi criticized the ongoing inflation in the country and pointed out the workers’ livelihood crisis, stating that workers’ wages do not even cover the expenses of 10 days of living.

These living conditions and the statements of labor activists come at a time when the Deputy Minister of Labor claims that workers’ wages have been fairly determined and no amendments will be made.

“The restoration of wages” was a promise made by the Minister of Labor during the determination of the wage increase, but Sowlat Mortazavi, after the workers’ request, rejected any promises to review wages.

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