Title: Addressing the Housing Allowance: A Critical Look at Worker Support Amid Economic Shifts
A Growing Disparity
In Tehran, the average price per square meter of housing has reached 90 million tomans, with construction costs at 30 million and monthly rents, excluding large security deposits, hitting 16 million tomans. Despite these soaring figures, the housing allowance for workers has remained unchanged for over two years. While a 35% wage increase was approved for workers in March 2025, the specific housing allowance component was not increased by the Supreme Labor Council and remained frozen at the amount set in 2023: a flat 900,000 tomans.
The Reality for Workers
For two years, workers have received this fixed housing stipend, an amount that covers only a fraction of their actual rental costs. The average rent in southern districts of Tehran is around 8 million tomans, with security deposits exceeding 500 million tomans. This stark contrast highlights a significant gap between the support provided and the economic realities on the ground.
Economic Pressures and Legislative Intent
The situation is further complicated by an inflation rate that reached 45% in September of the current year. The 900,000-toman allowance, which might cover the cost of one kilogram of red meat or three kilograms of rice, is entirely insufficient for housing, a non-negotiable expense for families. According to Article 41 of the Labor Law, the housing allowance must be determined based on inflation rates and the living costs of worker households. The current stagnation of this allowance, while housing consumes nearly half of a worker’s income, has raised serious questions about its alignment with legal and economic principles.
Calls for Action and Systemic Concerns
Labor representatives have consistently emphasized the need for a logical increase in the housing allowance commensurate with annual inflation. They have expressed concern that the Supreme Labor Council’s silence and inaction on this matter are undermining its role, potentially reducing it to a ceremonial body. There is a strong call for the Council to immediately present a proposal for increasing the allowance to the cabinet to address this pressing issue and uphold the dignity of the workforce.
Furthermore, recent groundbreakings for 94,000 worker housing units across seven provinces have been met with skepticism by labor activists. They argue that such projects, similar to unfulfilled plans in previous administrations, will only benefit a minority and fail to address the housing predicament facing millions of workers. They urge the Ministry of Labor to prioritize the definitive resolution of the housing allowance issue, which has a more direct and widespread impact.