Despite 40% Decline in Household Purchasing Power; Workers’ Minimum Monthly Wage Increased by Only 318,000 Tomans

While official reports indicate a decline in workers’ purchasing power of over 50 percent, Iran’s minimum wage for workers in the new year was increased by only 21 percent without the agreement of workers’ representatives.

According to Iranian media reports, based on a vote by members of the Supreme Labor Council, with a 21 percent increase in the minimum wage for workers in 1399, the base monthly salary of workers increased by 318,000 tomans to reach 1 million and 835,000 tomans.

This comes as the ILNA news agency reported that after the approval of this figure, “apparently worker representatives refused to sign the minutes” of the Supreme Labor Council meeting.

Previously, the Free Union of Iranian Workers issued a statement in Bahman calling for a 9 million toman increase in workers’ minimum monthly wage in 1399, stating that the Supreme Labor Council circumvents the existing labor law and fails to implement Article 41 of the Labor Law, and each year sets the minimum wage several times below the poverty line.

This is while an official from the Ministry of Labor announced that household purchasing power has declined by more than 40 percent this year, and estimates by workers’ representatives show that household purchasing power has fallen by more than 50 percent on average in various cities.

The Vice Chairman of the Assistance Committee also stated that 16 million people in Iran live below the poverty line.

The United States has repeatedly condemned institutionalized financial corruption and the plundering of Iran’s natural resources by affiliates of the ruling regime in the country, considering them among the main factors of Iran’s economic and financial problems. Among others, recently Mike Pompeo, the U.S. Secretary of State, tweeted about Islamic Republic officials, saying they have engaged in corruption instead of helping the people.

Source: Voice of America