Labor Household Expenses Reach Three Million Tomans; Minimum Wage Set at 812 Thousand Tomans

Abolfazl Fathollahi, Vice President of the Supreme Council of Labor Associations in Iran, stated on Tuesday, December 2, that the latest figure for the labor household expense basket, without considering the poverty line of 2.8 million tomans, is over three million tomans. Previously, Gholamreza Abbasi, President of the Supreme Council of Labor Associations, had said on November 28 that the labor household expense basket has reached 3.3 million tomans per month, while workers' benefits have not increased since 2016, and their wage arrears have not been compensated. The Supreme Labor Council determined the monthly minimum wage for workers this year at 812 thousand tomans, which has led to protests from both official and independent labor organizations. These organizations have demanded that the minimum wage be set in a way that covers the living expenses of workers and their families, referencing Article 41 of the Labor Law, which emphasizes wage determination based on inflation rates and monthly household expenses. However, labor organizations have pointed out that the minimum wage is only determined based on the first clause of Article 41, which has been met with objections. In contrast, employer representatives have indicated that economic conditions prevent higher wages, a stance supported by some government officials. According to ISNA, the Vice President of the Supreme Council of Labor Associations noted that the government has controlled inflation, limited resources, and collected liquidity from the market to reduce inflation rates in society, but practically, nothing significant has happened for the labor household basket. Instead of price reductions, there has been a decrease in consumption due to high prices. This situation has forced workers to work in two or three shifts outside the norm. Previously, some officials from official labor organizations in Iran stated that the monthly wage only covers ten days of living expenses for workers and their families. Ali Aslani, a member of the Supreme Council of Islamic Labor Councils, also stated on Tuesday that workers' wages have been problematic for years, and no year have wages been paid according to the real inflation rate. He added that unfortunately, global standards are not being observed, and the household expense basket is calculated without considering ancillary costs such as travel or healthcare. The Mehr News Agency also reported on Tuesday that ahead of determining the minimum wage for 2017, it is expected that essential goods in the expense basket will be the criteria for wage determination, rather than 300 items that have little impact on this segment of society's expenses. The reference to Mehr is about a consultative session proposing the minimum wage for workers, titled 'Wage Working Group 2017', which is set to begin its activities in December. The final approval of the monthly minimum wage for workers is with the Supreme Labor Council, consisting of three labor representatives, three employer representatives, and four government representatives. According to Mehr News Agency, items such as red and white meat, legumes, oil, rice, eggs, dairy, vegetables, and fruits, along with housing, healthcare, and education, should be considered in determining the minimum wage. The monthly housing allowance for workers has increased to 40 thousand tomans since the second half of this year.