Increase in Pensioners' Salaries in 1403; Parliament Commission Reduces by Two Percent

The spokesperson for the Joint Commission of the 1403 Budget Bill in the Islamic Consultative Assembly announced on Wednesday, December 20, that the commission has proposed an 18% increase in the salaries and benefits of government employees and pensioners. According to the website 'Didban Iran', Mohammad Mehdi Mofatteh stated this during a public session of the parliament while reading the commission's report on the 1403 Budget Bill, mentioning that this increase is planned to be implemented in a staggered manner (decreasing) for what he termed 'observing justice.' This proposal comes at a time when the ILNA news agency reported on December 15 that 'inflation is revolving around 45%.' Additionally, economist Peyman Molavi stated on December 15 to Khabar Online that next year, 'inflation will be in the range of 35 to 40 percent in the optimistic scenario, and around 40 to 45 percent in the median scenario.' The proposed 18% increase in salaries and benefits was raised four days after Davood Manzoor, head of the Planning and Budget Organization, announced that the average increase in salaries for employees and pensioners next year would be 18% and 20%, to be implemented in a staggered manner. The head of the Planning and Budget Organization mentioned that if the average growth of 18% is increased through inflationary methods, it would not benefit the people, adding that 'staggered growth will not have inflationary effects.' In recent years, officials of the Islamic Republic have repeatedly justified their opposition to increasing salaries and wages by stating that such actions would have inflationary effects. However, according to Ali Hossein Rayati-Fard, Deputy Minister of Labor, 'the inflationary effect of wage increases is only 3 to 5 percent.' The parliament has approved the generalities of the 1403 budget; the slogan of pensioners protesting in several cities of Iran: 'Hosseini Hosseini, their slogan, lies and theft are their work.' The government has retreated in the 1403 budget; the equalization of pensioners' salaries has entered the budget. Protests over the livelihoods of telecommunications pensioners have occurred in at least 13 provinces: 'We have seen no justice, we will not vote for the parliament.' The Minister of Labor is hopeful for 'opening' in next year's wages; a labor activist states: 'The government is alongside employers.'