Rewritten Title: Iran Approves New Year Wage Adjustments Amid Economic Assessments
Article:
In light of rising living costs, the determination of wages and salaries for the upcoming Iranian year (1405) has become a central economic concern for working families across the nation. The annual pay adjustment process is a key mechanism to address the economic pressures faced by employees, workers, and retirees.
Legal Framework for Wage Determination
According to labor law expert Hamid Haj-Ismaili, the official calculation for the minimum wage must adhere to two primary indicators outlined in the Labor Law: the inflation rate and the cost of a household’s subsistence basket. Official statistics currently place the point-to-point inflation rate at approximately 49%, with expectations for it to remain above 45% by the year’s end.
Focus on Subsistence Costs and Poverty Line
Haj-Ismaili highlighted that the cost of the subsistence basket has been a critical metric for the government and labor groups in recent years. Field studies estimate that the current poverty line and subsistence cost for a household now exceeds 55 million tomans, a figure that may increase further. He noted, however, that aligning wage increases directly with these indices presents a challenge for the government and employers due to resource constraints and considerations for national production.
Continuation of Government Support Measures
Emphasizing the necessity of sustained government support, the expert pointed to the continuation of the commodity voucher program as an essential measure to alleviate living costs for workers, employees, and retirees. He confirmed that several rounds of these vouchers have already been distributed, with a new phase set to begin shortly. For these support mechanisms to be effective, he stressed that price stability for essential goods is a fundamental requirement.
Ensuring Price Stability for Essential Goods
Haj-Ismaili elaborated that preventing price increases on goods covered by the voucher scheme is crucial. He suggested that the government could utilize preferential exchange rates and subsidized procurement of essential commodities to maintain price stability. Any significant price hike could otherwise negate the benefit of the financial aid provided to households.
Addressing Social Security Organization Challenges
The expert also addressed the challenges facing the Social Security Organization, which, due to a resource deficit, encounters difficulties in raising retirees’ pensions in full alignment with the Supreme Labor Council’s decrees. The organization reportedly faces a monthly shortfall, complicating its financial obligations.
Call for Early Wage Negotiations
Haj-Ismaili underscored the importance of initiating wage negotiations for the new year at the earliest opportunity. An early start would allow for a more thorough examination of supportive solutions and the presentation of practical proposals. He further clarified that while wage increases are a factor in the economy, other elements such as broader economic instability play a more substantial role in inflation, making inflation control a primary mission for the government.
Outlook for the New Year
While a precise figure for the minimum wage in 1405 cannot yet be announced, Haj-Ismaili affirmed that a central goal of the government and labor groups will be to narrow the gap between the minimum wage and the estimated poverty line, aiming to improve the livelihood of the nation’s workforce.