Title: Labor Union Head Calls for Urgent Review of Subsidy Cuts, Questions Eligibility Criteria
In a significant development regarding Iran’s social welfare policies, the head of the country’s High Council of Trade Unions has called for an immediate review of recent subsidy removals, arguing that the changes have unfairly impacted low-income workers.
Call for Policy Reassessment
Somayeh Golpour, President of the High Council of Iranian Trade Unions, has publicly criticized the recent removal of subsidies for certain workers, urging the government to reconsider its approach. Golpour emphasized that if the state intends to address budget shortfalls, subsidy elimination should begin with high-income government employees, not the low-wage labor strata who subsist on minimal means.
The New Subsidy Framework and Implementation Challenges
The monthly 300,000 Tomans subsidy is typically deposited for deciles four through nine of the population. However, recent government announcements indicated its removal for deciles eight, nine, and ten. The new eligibility criteria exclude households based on factors including more than five international trips per year, ownership of high-value property or vehicles, and a per capita monthly income exceeding 10 million Tomans after rent deductions.
Despite these official metrics, reports suggest that some low-income families with minimal assets have been removed from the subsidy recipient list. There have even been instances of subsidies being cut for families under the support of the Imam Khomeini Relief Foundation and the State Welfare Organization, though some were reportedly reinstated after follow-up procedures.
System Flaws and Unintended Consequences
Golpour criticized perceived inefficiencies in the Iranian Welfare Database system, stating, “The goal of the subsidy targeting plan was to support low-income strata, but gaps in this system have led to the illogical removal of workers.” She explained that receiving loans for expenses like marriage or housing, or even using point-of-sale (POS) systems for small livelihood activities, can inadvertently alter a family’s decile classification and result in subsidy loss. This policy, she argued, has not improved the livelihood of the low-income but has instead placed additional economic pressure on them and intensified poverty lines.
A Question of Priorities and Economic Justice
Highlighting a perceived contradiction, Golpour referenced previous statements by the President that an income of 20-25 million Tomans was insufficient for living in Tehran. She questioned how a family that reaches this income level through overtime work could then be classified as “wealthy” and lose its subsidy. She also pointed to the previous suspension of essential commodity vouchers for vulnerable groups, which was only revived after intervention, as another example of policy affecting basic living standards.
The Plight of Contract Workers and a Final Appeal
Noting that 98% of workers are on temporary contracts with significant job insecurity, Golpour described the subsidy removal as a heavy blow to this segment of the population. She firmly reiterated that the government should start subsidy cuts with high-income civil servants who enjoy numerous benefits, not vulnerable workers. The union leader has called on the judicial system to review the matter, warning that incorrect decision-making jeopardizes the livelihood of families dependent on this support. She has requested that the Ministry of Cooperation and supervisory bodies revise the welfare database to reinstate removed workers and pensioners, safeguarding the economic stability of low-income families.