Inflation at 45%; Iran's minimum wage to increase by only "29%"

Based on the projections made in the 1401 budget bill, the minimum salary for employees next year will increase from 3.5 million tomans to 4.5 million tomans.

An "informed official" at the Planning and Budget Organization told Fars News Agency on Sunday, December 4, that the minimum salary for employees will increase to 4.5 million tomans for next year.

Thus, while the annual inflation rate in the country is around 45 percent and food inflation is still above 60 percent, the minimum wage for employees will only increase by less than 29 percent.

The gap between the minimum income and the poverty line in Iran has increased sharply in recent years, and according to official statistics, 30 percent of Iranians are below the absolute poverty line and 60 percent are below the poverty line.

This "informed official," who was not named by Fars News Agency, said: "Minimum wage earners will receive a 29 percent salary increase, and the higher the salary, the lower the salary increase coefficient."

He also said that a salary tax exemption of five million tomans has been projected for next year.

For workers, the living conditions and wages are much worse. While the poverty line in Iran is officially set at 70 million tomans for a household (3.3 people on average) per year, the minimum annual salary for workers is 26.5 million tomans.

Source: Radio Farda