A Labor Official: The Monthly Cost Basket for Workers in 2016 was '2 Million and 550 Thousand Tomans'

The head of the Supreme Council of Labor Unions announced that workers are demanding the calculation of 'the inflation rate of their consumption basket and determining the wage based on it' and 'do not expect higher wages.' According to him, the monthly cost basket for workers last year was '2 million and 550 thousand tomans.' According to ISNA news agency, Gholamreza Abbasi stated that it was agreed that the figure '2 million and 550 thousand tomans' would serve as the basis for wage decisions in the meetings of the Supreme Labor Council, but unfortunately, it was not considered in determining the wage for 2017, and this year, with the existing inflation, this figure will definitely exceed that amount. The Supreme Labor Council set the minimum monthly wage for 2017 at 930 thousand tomans, which led to protests from labor organizations. Abbasi mentioned that the inflation rate announced by the Central Bank or the Statistical Center of Iran 'actually reflects the inflation rate of 300 items that are considered on average, while workers and low-income groups deal with at least 40 items.' He added that 'the demand of the labor community is that inflation should be calculated based on the 40 items of the workers' consumption basket, and whatever the amount is, the percentage of workers' wages should be increased accordingly.' The main reference for determining the minimum monthly wage for workers in Iran is Article 41 of the Labor Law. The first clause of this article states that the inflation rate and the household livelihood basket must be considered in determining the minimum wage. However, labor activists and organizations say that in recent years, the determination of the minimum wage has only been based on the first clause of Article 41 by the government and the Supreme Labor Council. Meanwhile, ILNA news agency reported based on statistics published by the Central Bank in a report titled 'Results of Household Budget Review in Urban Areas of Iran - Year 1395' that Iranian families are becoming 'less consuming.' According to ILNA, in the attached list to the Central Bank's household budget report, 'there is not even one item that can be found whose consumption has significantly increased.' The news agency added: 'The rice consumption of urban households has decreased from 174 kilograms in 2007 to 106 kilograms, and the consumption of bread, which is a staple food, has dropped from 458 kilograms to 311 kilograms.' The report also stated that the consumption of poultry meat has decreased from 96 kilograms to 86 kilograms, and the consumption of milk, yogurt, and cheese has decreased from 206 kilograms, 86 kilograms, and 26 kilograms to 120 kilograms, 80 kilograms, and 23 kilograms, respectively. ILNA also reported that even the consumption of 'tea and sugar, which have long been considered the most basic consumer goods,' has decreased from 6 kilograms and 29 kilograms to 3 kilograms and 16 kilograms, respectively. Fariborz Raees Dana, an economist, told ILNA that 'the people's stomachs are emptier. Over all these years, the income increase of the majority of households... has never matched the expenses; therefore, this majority group has tried to cut back on both the quantity and quality of their most basic needs to continue their lives.'