Iranian media reports put the cost of a basic household living basket above 50 million tomans and the poverty line as high as 70 million, while a worker’s monthly pay remains below 20 million.
The figures expose a deepening crisis for working families, whose wages can no longer cover food, housing, healthcare, and other essential expenses. The burden falls particularly heavily on those who remain employed full-time but cannot earn enough to escape poverty.
Wages Cover Only a Fraction of Living Costs
On September 13, 2026, Khabar Online reported that the poverty line had exceeded 70 million tomans, while workers’ wages remained below 20 million tomans. The report, citing estimates attributed to Khorami, highlighted the growing disparity between earnings and the cost of living.
Mehr News Agency had previously reported, on February 28, 2026, that the relative poverty line stood at 60 million tomans or more, underscoring the scale of financial hardship facing households.
More recently, Donya-e-Eqtesad reported on October 6, 2026, that the cost of a household’s basic living basket in major cities had surpassed 50 million tomans. The report highlighted the mounting pressure on workers’ purchasing power and renewed calls for the government to reconsider wages in response to rising living costs.
Taken together, these estimates illustrate the scale of the wage crisis. Even when housing, food, and family allowances are included, minimum-wage earnings cover only a fraction of the reported cost of basic living.
The consequences extend beyond reduced purchasing power. When wages cannot keep pace with inflation, employed people can be trapped in poverty despite working full-time. The continued depreciation of the rial further erodes the real value of their earnings.
Wage-Setting System Fails to Protect Workers
Under Article 41 of Iran’s Labor Law, the Supreme Labor Council is responsible for setting minimum wages, taking inflation and the cost of living for a typical household into account.
In practice, however, the annual wage-setting process has failed to close the widening gap between earnings and essential expenses. Government representatives, employers, and labor representatives participate in the council, but independent labor organizations face restrictions, limiting workers’ ability to organize and negotiate effectively.
The result is a system in which officially approved wages can lose purchasing power rapidly as prices rise. Without meaningful collective bargaining and effective representation, workers have limited means to compel decision-makers to address the deterioration in their living standards.
Inflation Transfers the Burden to Wage Earners
Persistent inflation and the depreciation of the national currency have made food and housing increasingly difficult to afford. As households devote more of their income to rent, less remains for nutrition, healthcare, education, and other necessities.
Workers are consequently forced to cut essential spending, including protein-rich foods and dairy products. High housing costs also push low-income families toward overcrowded accommodation and informal settlements.
Meanwhile, the burden of inflation falls disproportionately on people whose incomes cannot adjust as quickly as prices. Workers and salaried employees have little protection when the cost of necessities rises faster than their wages.
The wage crisis is also threatening the formal labor market. When legitimate employment fails to provide a viable living, workers may turn to informal activities or leave their occupations in search of better income. This weakens job security and undermines the retention of skilled labor.
Workers Need More Than Annual Wage Adjustments
The figures published by Khabar Online, Mehr, and Donya-e-Eqtesad point to a persistent structural problem: the growing distance between officially determined wages and the actual cost of survival.
A wage-setting system that fails to protect purchasing power leaves workers struggling to meet basic needs even when they are employed. Periodic adjustments that lag behind inflation cannot resolve the underlying problem unless wages are meaningfully linked to living costs and workers have effective representation in negotiations.
For Iran’s working families, the consequences are immediate: declining living standards, reduced access to essential goods and services, and growing economic insecurity. The widening wage gap is not merely a labor-market problem; it is a measure of the broader economic crisis confronting the country.