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A Union Official: We Have 5 Million 'Underground' Workers Without Insurance

Feb 5, 2026 February 5, 2026 2 min read 📰 VOA Persian
📋 Key Takeaway

Fathollah Bayat, head of the Union of Contract and Temporary Workers, revealed that around 5 million workers in Iran are employed informally without job security or insurance. The current wages for these workers are significantly below the poverty line, and the demand for wage increases in line with inflation remains unmet, highlighting the dire economic conditions facing Iranian laborers.

🔍 Quick Context Guide
💡 Bottom Line: Iran's informal labor market highlights severe economic challenges and worker exploitation, raising concerns about social stability.

👥 Key Players

Fathollah Bayat MENTIONED
Head of the Union of Contract and Temporary Workers
"Represents the interests of a significant portion of Iran's workforce, highlighting labor issues and advocating for workers' rights."
Iranian Government MENTIONED
Policy maker
"Responsible for labor laws and wage policies, their decisions directly affect the economic conditions and rights of workers."
Isfahan Steel Workers MENTIONED
Labor group
"Their recent strikes reflect broader labor unrest and dissatisfaction with wage conditions in Iran."

📰 What Happened

Fathollah Bayat announced that around 5 million workers in Iran are employed informally without job security or insurance. The current wages for these workers are significantly below the poverty line, and there is a pressing demand for wage increases that align with inflation.

  • More than 96% of Iran's 15 million workers are on temporary contracts.
  • The average income of a married worker with children is less than 9 million tomans, while the poverty line is over 15 million tomans.

💡 Why It Matters

🇮🇷 For Iran: The lack of job security and low wages for millions of workers could lead to increased social unrest and dissatisfaction with the government.
🌍 Regional: Labor unrest in Iran may inspire similar movements in neighboring countries facing economic challenges.
🌐 International: International observers may view these labor issues as indicators of Iran's broader economic instability, affecting diplomatic relations.

📚 Background

Iran's economy has been struggling with high inflation and unemployment, leading to precarious working conditions for many. Informal employment is common, leaving workers vulnerable.

Labor rights in Iran Economic conditions and inflation in Iran
📡 Source: NEUTRAL
📊 Confidence: 70%
The article presents factual information from a labor leader, making it a credible source for understanding labor issues in Iran.

The head of the Union of Contract and Temporary Workers has reported the existence of about 5 million workers in 'underground' and informal workshops who are working solely to make a living without insurance and job security. Fathollah Bayat also stated that today none of the workers in the country have job security because more than 96% of the 15 million worker community are employed under temporary contracts. According to Bayat, some workers are on 89-day contracts, one-month, three-month, and six-month contracts, and even on blank contracts and 'bonding' and 'commitment' agreements, ensuring they have no claims or arrears from their employers. Workers in Iran, in addition to lacking job security and insurance, are also grappling with livelihood issues. Currently, the income of a married worker with children in Iran is less than 9 million tomans, while the poverty line in the country, according to labor organizations, is over 15 million and, according to media reports, over 20 million tomans. The determination of wages in line with inflation is the most important livelihood demand of workers, which has been overlooked in recent years, and it is predicted that next year there will also be no attention to inflation rates and the impact of economic policies on determining the minimum wage. The government has stated that the inflationary nature of wage increases is the reason for this action. In related news: The government's plan for increasing employee salaries next year; only 18 percent. A news agency identified the 'government' as the main opponent of changing the status of contract workers. A petition was sent to the Guardian Council; 30,000 workers demanded the repeal of the retirement age increase decree. Thousands of workers at Isfahan Steel have gone on strike; workers are demanding a 30% wage increase. Very difficult conditions are expected next year; workers' wages, even with a 30% increase, will be lower than the inflation rate. The gap between food and housing and basic needs; quality of life is in free fall.

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Translated from the original and edited for English readers. View original source →

Translation confidence: 85%

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