Dispute Over Wage Rights Escalates; Head of Budget and Planning Organization: No News of a 30 Percent Increase

While labor organizations expect a wage increase based on inflation, and some representatives believe that a 30 percent wage increase next year will not alleviate the financial pressure on workers, the head of the Budget and Planning Organization has stated that there is no capacity to pay a 30 percent wage increase to employees. Davood Manzoor emphasized that 'if we do this, inflation will intensify.' This claim from the head of the Budget and Planning Organization of the Islamic Republic came after the Minister of Labor in Ebrahim Raisi's government lit the first signal of opposition to increasing workers' wages, stating that the 57 percent wage increase last year was not beneficial for workers and led to 45 percent inflation. The 'Tasnim' news agency, in response to these remarks by Minister Solet Mortazavi, wrote that currently 'the minimum monthly wage for a worker with two children is about 8 million and 500 thousand tomans, while all of a worker's monthly wage, including overtime in the most optimistic scenario, is spent on rent and monthly food costs.' This government-supporting news agency emphasized that 'the current wage of workers does not truly cover their expenses, which is why most workers are engaged in two or more jobs to manage their living costs.' In response to the Labor Minister's comments, a member of the Parliament's Budget and Planning Commission stated that a 30 percent wage increase is more proportional to the 44 percent inflation rate. This comment provoked a reaction from the head of the Budget and Planning Organization, who said that 'there is no capacity to pay this level of wage increase.' However, Ehsan Arkani, a member of Parliament, emphasized that 'we are not saying the wage increase should be 44 percent, but it is not even 18 percent in proportion to 44; at least the number 30 is more appropriate, and we hope there will definitely be a reconsideration of wage increases for employees and retirees in the 1403 budget.' The dispute over determining the minimum wage for next year and the emphasis on a 20 or 30 percent increase comes while reports indicate that the poverty line in Tehran and major cities has reached above 30 million tomans and 20 million tomans nationwide. Currently, according to reports, a government employee receives an average of 12 million tomans, while a married worker with children receives less than 9 million tomans monthly. The seventh development plan; diesel will increase in a tiered manner from 1404. Ambiguity in the living conditions; the path to reaching the poverty line; a 200 percent wage increase. A labor official stated: 'We have 5 million uninsured 'underground' workers.' The Joint Commission of Parliament accused the government of violating the 'seventh plan' regarding the percentage increase in pensions. Very difficult conditions are expected next year; workers' wages with a 30 percent increase will be lower than the inflation rate. The gap between food and housing and basic needs; quality of life is on a downward trajectory. They want to survive; 70 percent of workers have a second job.