The workers' livelihood basket has come under severe pressure due to unprecedented price increases. According to data from the Statistical Center of Iran, in August of this year, the overall year-on-year inflation rate was about 90 percent, while the year-on-year inflation rate for food items reached 130 percent. This price increase has caused living costs to far exceed workers' wages.
Wage Lag and Rising Food Prices
Food items in August 2023 were, on average, 130 percent more expensive than in August of the previous year. Meanwhile, the increase in the minimum wage and benefits for minimum wage workers was only 60 percent, and the earnings of workers in other levels increased by 45 percent plus a fixed amount. Thus, workers' wages are at least 70 percent behind the rising food prices.
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Increase in Drug and Service Prices
The gap between the minimum wage of workers and living costs, known as the "minimum livelihood basket," has widened more than ever. Food costs have reached an average of 15 million tomans more than the wages of workers plus all benefits. In addition to food, the relentless rise in prices of other goods and services such as medicine and transportation continues. Ahmad, the public relations manager of the Iranian Pharmacists Association, announced that the prices of Iranian medicines have increased by about 150 percent since the beginning of the year, and for foreign medicines, the increase has reached 400 to 500 percent.
Given this situation, married workers with one child, accounting for all benefits, receive only 24 million and 900 thousand tomans, which is deeply insufficient against the rising living costs. This condition highlights the urgent need for review and immediate measures to improve the livelihood situation of workers.
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