Iran News Update:

By Mostafa Aslani

The head of the National Security and Foreign Policy Commission of Iran’s Parliament recently issued a stark warning amidst escalating livelihood protests in various cities. As workers and pensioners continue to struggle with severe economic hardships, Ebrahim Azizi cautioned that failure to make “correct decisions regarding the problems of the working class” could have serious repercussions for national security. His remarks underscore the growing unrest fueled by economic grievances.

Azizi’s comments come ahead of the Supreme Labor Council’s crucial meetings to determine the minimum wage for the coming year. This decision is seen as a litmus test for the government’s commitment to addressing workers’ demands amid widespread discontent.

Economic Pressures and Wage Disputes

Labor experts and activists argue that the minimum wage must be aligned with the economic realities and labor market conditions to safeguard workers’ welfare. Critics accuse the government and employers of suppressing wages, exacerbating the gap between income and expenses. An economic journalist highlighted that this issue is further compounded by the government’s budgetary decisions, including a 30% reduction in the preferential currency allocation for essential goods and an increase in the base exchange rate from 28,500 to 38,500 tomans.

To maintain current living standards, minimum wages must rise in proportion to the rising cost of living. Labor organizations estimate the monthly cost of living in major cities to be around 37 million tomans, starkly contrasting the current minimum wage of 11 million tomans for a married worker with children. With inflation and currency devaluation eroding purchasing power, any adjustments to the official exchange rate risk triggering another wave of price hikes.

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