Warning of Deteriorating Livelihoods Next Year; Salaries Lag Behind Inflation Rate

Media outlets have warned of a 20 percent increase in salaries for the upcoming year. This salary increase comes at a time when the annual inflation rate is above 45 percent, with no prospect for reduction. In this context, the Tasnim news agency, affiliated with security institutions, has republished statements by Ali-Hossein Raiti-Fard, the Deputy Minister of Labor, made in August 2022. Raiti-Fard had declared a 57 percent increase in workers' salaries as the government's effort to improve the livelihood of the working community. Vali Esmaeili, the head of the Social Commission of Parliament, pointed out the economic conditions and the necessity to improve the livelihoods of employees and workers, stating that 'the government can source the salary increase from productive assets.' Jafar Qadri, a member of the Program, Budget, and Calculations Commission of Parliament, also believes that with a 40 percent inflation rate, increasing salaries by 20 percent effectively does nothing and reduces people's purchasing power. The Tasnim news agency has also reported critically on the government's disregard for the people's livelihood crisis, stating: 'Workers are in a situation where they face many livelihood problems, but unfortunately, government officials claim that employers are collapsing and workers are being laid off.' The new approach of the government in determining wages has also faced negative reactions. Hadi Aboui, the secretary of the Supreme Council of Labor Associations, stated that by regionalizing wages, 'wherever higher wages are paid, workers will migrate there.' The main demand of workers is to align salaries with the inflation rate to compensate for the gap created in income and expenses. Alireza Mirghafari, a member of the Supreme Council of Labor Associations, emphasized that 'the minimum wage should be considered equal to the livelihood basket, and then higher wages should be set for various industries and regions.' Protests by retirees and strikes by workers of the National Industrial Steel Group of Ahvaz, as well as livelihood protests by telecommunications retirees in several cities in Iran, have been reported. There are ongoing reports of fraudulent employers abusing personnel documents and cards. The unprecedented waves of migration continue in Iran, with predictions of the formation of a Ministry of Migration. The heavy consequences of stagflation are evident, with confirmation of widespread buying and selling of 'marriage loans' by government officials. Officials have resisted responding to the minimum demands of the disabled, with the government refusing to increase livelihood assistance.