MP Ali Babaei

Iranian MP Calls For Fair Wages For Workers

Tuesday, 03/12/2024

Ali Babaei, the spokesperson for the Labor Faction in the Iranian parliament, has emphasized the need for fair wages for workers amidst dire economic challenges.

Commenting on reports regarding wage determinations, he stated that according to expert assessments, the minimum livelihood basket for working families stands at 250 million rials (approximately $400).

Highlighting the plight of workers, Babaei noted, "The first group that has always been hit by mismanagement are the workers." He emphasized that workers are oppressed, their rights are often denied, and their job security remains uncertain. Babaei called upon the government and parliament to intervene to ensure minimal pressure is exerted on society, particularly on the working class.

In line with these concerns, the Iranian government has approved an average salary increase of 20 percent for workers effective after March 21. The new minimum monthly wage has been set at 115 million Iranian rials, equivalent to approximately 190 US dollars.

However, the economic backdrop remains challenging, with an annual inflation rate of around 50 percent. The purchasing power of consumers is closely tied to the fluctuating US dollar rate, which currently stands at 600,000 rials. The likelihood of further depreciation of the rial in the upcoming year poses additional challenges, potentially eroding the value of the minimum wage against the dollar.

Persistent inflation and a sluggish economy have led to a significant decline in the purchasing power of ordinary Iranians, pushing millions into the category of "working poor." Reports indicate that workers' wages cover only about 60 percent of their monthly household expenses, highlighting the pressing need for wage increases.

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