Iran hikes minimum wage 60% amid war pressure

2026-03-16 - 13:44

Shafaq News- Tehran Iran approved a 60% increase in the national minimum wage, raising monthly pay from $75 to roughly $120, Labor Minister Ahmad Midari announced on Monday. According to Iranian media, Midari said the increase aims to offset rising living costs as the country faces inflation and wartime economic pressure. He estimated average household expenses now range between 13 million and 19 million tomans ($100–$145) per month. The government also approved higher worker benefits. Housing allowances will rise from 900,000 tomans (about $7) to 3 million tomans (around $23), while child allowances will increase from 1 million tomans ($7–8) to 1.6 million tomans ($12). Officials plan to review wages again in September next year to reassess income levels and economic conditions. Authorities are also preparing support programs for businesses affected by the war, including financial assistance for workshops that experienced production disruptions. Further measures are under discussion with the central bank and the Ministry of Economy, including emergency loans for certain workers such as taxi drivers. Iran has faced a worsening economic crisis marked by high inflation, a sharp currency decline, and rising living costs. The rial fell to record lows in late 2025 while inflation remained above 40%, eroding household purchasing power and increasing prices for basic goods. These economic pressures were cited as a contributing factor behind protests that began on December 28, 2025, and escalated into riots that eventually killed around 1,500 people according to official figures. Leaders in Tehran, including President Masoud Pezeshkian, characterized the unrest as a “foreign conspiracy,” accusing Israel and the United States of involvement and holding them responsible for the deaths during the protests.