The Islamic Supreme Labour Council set the minimum wage for 11.5 million workers at 487,125 Toman for the next Iranian year (20 March 2013- 20 March 2014).
This represents a 25% increase versus the last year's minimum wage. At first glance it appears to be a significant percentage. Yet this minimum wage applies only to workers covered by the labour law; a large proportion of workers are not covered by the labor law, including contract workers, temporary, seasonal, and project workers.
Even a member of the Islamic Supreme Labour Council estimates the real poverty line at about 1.5 million Toman. Other sources estimate the cost of living for a family of four including health care, housing, food, clothing, transportation and education to be of over 2 million and 361 thousand Toman per month. This is while the phase two of the plans to eliminate subsidies is set to be implemented in this spring.
Market and economic experts say that the price increase for consumption goods especially in worker households reached an average of 61.7 per cent between November 2011 up to November 2012 and the growth rate for some other items reached even 100%, 120% and 200%.
Estimates show that if the current monthly rate of price increase continues, for one year, the annual rate of inflation will reach a peak of 71%.