Despite Government's Insistence on Regional Wage Determination; Wages Will Be Set by Previous Method

According to news sources, in the third meeting of the Wage Committee held yesterday, Monday, February 9, members approved the 'national wage' and agreed to continue research on 'regional wages' as before. The ILNA news agency quoted a labor member of the Supreme Labor Council stating that the report read in the meeting showed that the wage determination structure in Iran is 'progressive' and 'there is no need for regional wage setting.' Mohsen Bagheri emphasized that the problem lies in the failure to determine wages according to the two components of 'livelihood basket' and 'inflation rate,' which has resulted in wages not being able to cover living costs. This member of the Supreme Labor Council criticized discussions regarding the 'regional wage' plan for workers in Iran, stating: 'Those who defend this plan, why do they not propose it for employees?' The 'Khabar Online' website also emphasized that although the issue of regional wage determination had been raised in the past, it was set aside due to its high costs. According to this website, this issue resurfaced in the government of Ebrahim Raisi, and the action of the Minister of Economy and the writing of a letter to the Minister of Labor led to the reintroduction of this plan. 'Khabar Online' referred to Ehsan Khandozi's letter in mid-January to Solat Mortazavi, suggesting that the wages for 1403 should be determined regionally, and following that, the Minister of Labor's defense of this issue and the employers' community's support led to this topic being placed on the agenda of the Supreme Labor Council. Opponents of this plan believe that 'regional wages' will increase migration from small cities to larger ones, and labor activists view the implementation of 'regional wages' as a warning sign for further 'deprivation of rights' for workers. The Supreme Labor Council set the minimum monthly wage for workers subject to labor law, married with children, at about 8 million tomans last March, which was significantly lower than the living costs at that time. Currently, living costs in large cities are estimated to exceed 30 million tomans. If the government fails to implement regional wage setting, it is seeking a 20% increase in the minimum wage, which will further widen the gap between income and expenses. Four labor organizations and groups stated that the monthly wage for workers next year should be 45 million tomans. Criticism of 'regional wages' continues; a union activist stated that the government is trying to reduce workers' purchasing power. Low wages are a major factor driving skilled Iranian workers to migrate to regional countries. Warnings have been issued regarding the weakening of livelihoods next year; salaries will lag behind inflation rates. Warnings about the consequences of 'regional wages' indicate that worker migration to cities will intensify.