The Hidden Consequences of Inflation; Workers' Real Wages Have Halved

An Iranian newspaper reported that the 'minimum wage' this year, while the society started the year with at least '50 percent inflation', only increased by '20 percent' compared to last year, emphasizing that this trend has caused the 'real wages of workers' to be 'halved' since the beginning. The Tehran-based newspaper 'Etemad' stated in its issue on Sunday, January 14, that the 'daily minimum wage' for workers this year has reached 'approximately 177,000 tomans', which shows a 'significant gap' with the purchasing power of a wide range of food items in Iran. Accordingly, the daily income of 177,000 tomans is expected to increase by 'about 20 percent' for the year 1403, reaching slightly 'over 200,000 tomans' per day. However, this new figure will also create a 'greater gap' with the food basket due to this year's inflation distance from next year. The Tehran-based newspaper 'Donya-e-Eqtesad' reported on Saturday, January 13, that a worker supporting a family of four must spend 'about 65 percent' of their income to procure a basket of minimum food items. The newspaper 'Etemad' posed the question, 'Why are food items important and why should the government reconsider the minimum wage for next year?', stating that after the high inflation of food items due to the removal of preferential currency under the title of 'economic surgery', a large portion of the income of lower-income deciles has been spent on food costs. This is why statistical reports show a different 'importance coefficient of inflation' for various income deciles. Meanwhile, the Tehran-based newspaper 'Ham Mihan' also reported on Tuesday, January 24, that 'since 1980, the purchasing power of workers with minimum wage has decreased by over 65 percent and has fallen to less than half'. It stated: 'The real minimum wage of workers this year has reached its lowest level in the past 28 years.' In this context, Hossein Goudarzi, a member of the Islamic Consultative Assembly, addressed Ebrahim Raisi on January 7 in a public session, stating: 'People will not tolerate inflation above 40 percent and the ever-increasing prices of food and living essentials, especially meat costing 600,000 tomans per kilo,' urging him to act 'before it's too late.' Iranian media reported on January 9 that the 'misery index' has increased in 14 provinces of the country during the fall of this year compared to the same period last year. According to this report, Chaharmahal and Bakhtiari province has the highest and Tehran province the lowest level of misery reported. Continuing opposition to the government's efforts to change the wage determination formula; a labor official stated: the conditions for implementing 'regional wages' are not met. A newspaper's account of the suffering of laid-off workers from Borujerd textile: layoffs when needed. A labor activist stated: regional wages can only be implemented with the participation of 'real representatives' of workers. The minimum holiday bonus for workers is 10.6 million tomans; the smell of the holiday is the smell of poverty. Intensified opposition to efforts to change the wage determination formula; a labor activist stated: 'regional wages' will not benefit workers. A member of parliament stated: they will not allow an investigation into the 4200 toman currency. Several labor and professional organizations: the government wants to push people back with executions and repression. More than a thousand workers have died in work-related incidents over six months.