The base salary for government workers was fixed at 100 million rials, while a minimum pension of 90 million rials was endorsed for retirees. The bill, presented during Saturday's session, garnered approval with 123 votes in favor, 53 against, and 11 abstentions out of 193 lawmakers out of 290 present.
The decision arrives as Iranian workers are about to receive a government-approved average minimum wage increase of 20 percent, scheduled to come into effect in March. The development unfolds against the backdrop of an alarming annual inflation rate nearing 50 percent. The timing underscores the delicate balance between consumers' purchasing power and the rising US dollar rate, currently standing at 560,000 rials. Notably, the Iranian rial depreciated by over ten percent within the past two weeks alone.
Last week, the new base monthly salary was equivalent to approximately 200 US dollars. However, a sudden decline in the value of the rial now pegs it to around 180 US dollars. The looming threat of further depreciation in the upcoming year, starting in March, presents a significant challenge, potentially diminishing the minimum wage's value relative to the dollar.
Persistent inflation and a sluggish economy have severely diminished the purchasing power of ordinary Iranians, with tens of millions falling into the category of "working poor." Experts highlight that the poverty line for residents of Tehran stands at approximately 300,000,000 rials (approximately $600) per month, three times the current minimum wage.
