Economist's Reaction to Minimum Wage Determination: Government Should Raise Workers' Wages 'Like Humans'

An economist has reacted to the controversies surrounding the minimum wage for workers, stating that if Iranian government decision-makers raise workers' wages 'like humans', the issue of 'production costs' will be resolved and 'smuggling' will also be curtailed. Farshad Momeni, head of the Institute of Religion and Economy, emphasized that given the current situation and the behavior of the Islamic Republic government and employers, 'the labor force in Iran is being exploited.' These remarks refer to the historical and ongoing lag of the minimum wage compared to current costs and inflation. This situation was repeated in the determination of the minimum wage for the year 1403, where the government's disregard for livelihood issues led labor representatives to leave the meeting without signing the wage resolution due to the mismatch between wages and inflation. According to the Minister of Labor of the Islamic Republic, the wage determination committee ultimately agreed to a 35% increase in the minimum wage. The exit of labor representatives from the meeting will not legally affect the resolution, as the wage resolution has reached the necessary quorum with the signatures of four government representatives and three employer representatives, making it legal and enforceable. Alireza Navaei, a labor activist residing in Paris, also commented on the imbalance between wage increases and current costs, stating to 'Voice of America' that the purchasing power of working and retired workers should be sufficient so that workers do not need to take on second or third jobs and retirees do not need to continue working. Farshad Momeni believes that in Iran, 'a media and propaganda mafia is seeking to punish the poor and needy.' Although this economist did not provide further explanations, annual inflation has been growing at an accelerating pace over the past decade, firmly establishing itself above 40%. According to the government's statistical center, inflation in Iran rose from 14% in the year 1393 to 45.8% in the year 1401 and has remained above 40% for the past four years. Meanwhile, workers' wages increased by 26% in 1399, 39% in 1400, 57% in 1401, and 27% in the current year. This level of wage increase in recent years has occurred while tangible inflation in society, especially in the food sector, has exceeded 100%. The government's opposition to the legal demands of labor representatives; wage increases are only 35%. The depth of the livelihood crisis during Ramadan; daily wages of 250,000 tomans, with Iftar and Suhoor costs of 650,000 tomans. The government's hand in determining the minimum wage has been revealed: a 20% proposal and widespread protests. Retirees, workers, and protesting drivers have held at least four gatherings. Gatherings of workers and nurses protesting occupational and livelihood issues have occurred in several cities in Iran. The competition between the poverty line and people's livelihoods; an economist states that 70% of Iranians are either below the poverty line or at risk of falling into it. Reports of the murder of three disabled children in various regions of Iran; the father of the child murderer was released two days after his arrest. Ongoing fruitless meetings of the wage determination committee behind closed doors; the publication of a 'survey' on wage increases in favor of the government.