35 Percent Increase in Iran's Minimum Wage Sparks Discontent as Inflation Soars

Iran's government announced a 35 percent increase in the minimum wage of laborers for the next Persian Year, which began March 20.

This increment brings the minimum wage to 11,107,000 tomans (approximately $185) with benefits.

However, the decision has been met with fierce criticism from labor representatives. 

They walked out of a meeting of the Supreme Labor Council in protest, refusing to endorse the resolution. 

Ali Hossein Raiyatifard, Deputy Minister of Labor, defended the decision's legality, citing a sufficient quorum at the meeting.

Labor activists and representatives had previously advocated for a 42 percent increase, aligning with the official inflation rate and cost of living basket. 

The latest report from Iran's statistics center places inflation at 42.5 percent.

Frustrated by the lack of progress on inflation-adjusted raises, labor activists recently launched an online campaign demanding a minimum wage of 15 million tomans ($250).

The gap between the new minimum wage and the actual cost of living in Iran is significant.

Estimates suggest a minimum cost of living exceeding 30 million tomans ($500) in Tehran and 20 million tomans ($330) in other cities. 

Additionally, many experts predict inflation will climb above 50% in the coming year.

The situation raises concerns about the ability of Iranian workers to afford basic necessities.