The ILNA News Agency has highlighted the alarming deterioration in workers’ living standards and wages in Iran. According to its report on Monday, January 27, the real value of workers’ salaries has plummeted to a quarter of what it was in 2014.
Factoring in inflation and the sharp devaluation of the national currency, the report estimates that to restore the purchasing power of 2014, workers today would need a monthly income of nearly 50 million tomans. However, the current average salary is approximately 12 million tomans, far below what is needed to maintain a basic standard of living.
Wages and Inflation: A Growing Gap
The report underscores that in 2014, the minimum wage for workers subject to labor laws was 608,000 tomans. In stark contrast, by 2024, the income for a worker with two children has risen to just 10.9 million tomans. This is significantly less than the estimated 49 million tomans required to match the purchasing power of a decade ago.
Ahmad Bigdeli, a member of the Parliament’s Social Commission, criticized resistance to raising workers’ wages. He dismissed claims that wage increases drive inflation, emphasizing that even a 30% salary hike would do little to alleviate the economic struggles faced by workers.
The Household Livelihood Basket
Faramarz Tofighi, a member of the Supreme Labor Council, revealed earlier this month that the minimum household expenses in major cities amount to 32 million tomans, while in smaller cities, the figure stands at 28 million tomans. These figures starkly contrast with the actual wages received by workers.
A Decade of Economic Decline
ILNA’s report characterizes the more than 400% decline in the real value of wages over the past decade as unprecedented in Iranian economic history. The report describes this phenomenon as pushing workers into “the abyss of absolute poverty,” leaving them unable to meet basic survival needs.
Labor activist Alireza Khorami echoed these concerns, calling the severe drop in wages a “bitter but undeniable reality.” He stressed that any wage below 30 million tomans is not only unfair but amounts to “modern slavery.”
Government Inaction and Criticism
Labor activist Nasser Chamani criticized recent comments by the Minister of Economy, who acknowledged the dire living conditions but claimed that the government’s capacity to address the issue was limited. Chamani stated, “Not only this government but previous administrations have consistently disregarded the living conditions of the salaried population. If the government cannot take effective action during a crisis, what purpose does it serve?”
Employment Deputy Minister of the Ministry of Cooperatives, Labour, and Social Welfare Malek Hosseini also admitted on January 27 that the current wages are inadequate. He noted that this wage insufficiency has led to a surplus of job demand over labor supply, with many workers unable to meet even the most basic living expenses.
Legal Mandates Ignored
Under the Labor Law of the Islamic Republic, the minimum wage is supposed to correspond to the inflation rate and the cost of a “decent life.” However, this principle has repeatedly been overlooked by government officials and employers, resulting in ongoing protests by workers and independent labor organizations.
Declining Dollar Value of Wages
The Etemad newspaper reported in December 2024 that the dollar value of Iran’s minimum wage has fallen from $113 to $100 over the past year, further eroding workers’ purchasing power. The paper described the “draining” of workers’ wages as a consequence of currency shocks and the devaluation of the rial.
Conclusion
The erosion of workers’ wages in Iran over the past decade reflects deeper systemic economic challenges. Despite legal mandates to align wages with inflation and living costs, workers continue to bear the brunt of economic mismanagement and neglect. Without substantial policy reforms and immediate action, the livelihoods of millions of workers and their families will remain in jeopardy.
Source » irannewsupdate