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Economic Realities: The 20% Salary Increase Dilemma in Inflationary Times

Economic Realities: The 20% Salary Increase Dilemma in Inflationary Times

Iran regime’s state-run media reports are sounding the alarm over a proposed 20% salary increase set for the upcoming year. This wage adjustment comes at a challenging time when annual inflation has surged beyond 45%, with no immediate signs of abating.

Tasnim news agency, has revisited statements made by Ali Hossein Raitifard, deputy of labor relations of the Ministry of Cooperatives, Labor and Social Welfare in 2022.

Raitifard had then asserted that the government’s commitment to enhancing the living conditions of the working community led to a substantial 57% increase in workers’ salaries.

However, Esmaili, head of the parliamentary social commission, emphasized the need to address economic conditions and improve the livelihoods of employees and workers.

He proposed that the government should explore sources for salary increases from productivity-driven initiatives.

Jafar Qadri, a member of the Parliament’s Program, Budget, and Accounts Commission, expressed skepticism about the proposed 20% salary increase in the face of a 40% inflation rate. Qadri argued that such an increase would be insufficient in practice, leading to a decrease in people’s purchasing power.

A critical report by Tasnim news agency shed light on the regime’s perceived indifference to the livelihood crisis faced by the people.

The report highlighted that workers are grappling with numerous livelihood challenges, while the regime’s response seems to prioritize concerns about employers’ viability, potentially leading to worker layoffs.

The regime’s new approach to wage determination has encountered backlash, with Hadi Aboui, the secretary of the Supreme Center of Labor Unions, expressing concern about regionalizing wages. Aboui warned that such a move could prompt workers to migrate to areas offering higher wages.

Workers’ primary demand is for salary adjustments to align with the inflation rate, aiming to bridge the growing gap between income and expenditures.

Alireza Mirghafari, a member of the Supreme Council of Labor Unions, underscored the importance of setting minimum wages at the level of the subsistence basket.

He proposed that wages exceeding these minimums should be tailored to various industries and regions.

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