Potential Challenge in Salary Payments; A Government Official: The Parliament's Resolution Requires 24 Trillion Tomans

The head of the Administrative and Recruitment Organization of the Islamic Republic has stated that the 2% increase in employee salaries proposed in the budget bill requires an annual budget of 24 trillion tomans. Some experts believe that these remarks by Meysam Latifi indicate the onset of challenges in paying government employees and pensioners, and without the necessary budget being secured, payments will be delayed. Latifi mentioned that every 1% increase in employee salaries costs 1 trillion tomans per month, and the head of the Planning and Budget Organization must negotiate with the Parliament, the Guardian Council, and the Expediency Council to ensure that the salary increase does not lead to inflation and a decrease in the national currency's value. Reports indicate that the government proposed an 18% salary increase for employees in next year's budget, which was raised to 20% in Parliament and approved by the Guardian Council. This 20% salary increase comes at a time when the Central Bank's latest report shows the point-to-point urban inflation rate in Azar 1402 at 54.2% and the average urban inflation rate for that month at 55.9%. Experts believe that the increase in workers' wages will also be 20%, which does not correspond to the current inflation in the country, and that inflation next year will further pressure households. Raisi is breaking records; inflation is rising day by day, and households are getting smaller. The sale of several hundred million tomans in car assembly vouchers; various cars are becoming more expensive by the 'government'. Life for bread; 65% of workers earn less than the minimum wage, and 76% of the affected have no insurance. A warning from an economist regarding economic collapse: a 60% inflation rate is not out of the question.