Iran's Labour Minister Ahmad Meydari confirmed a 60% increase in the country's minimum wage on Monday, raising the monthly minimum from 103 million rials (€67.5) to 166 million rials (€109).
The measure, designed to help offset soaring living costs, comes months after protests driven by economic hardship and amid intensified sanctions and worsened conditions due to the ongoing war with Israel and the US.
Protests in Iran in early 2026 led to a severe crackdown by the IRGC, resulting in a death toll of at least 36,000, according to independent sources.
The Iranian regime, under the late Ayatollah Ali Khamenei, authorised the use of live fire against protesters, with Khamenei reportedly ordering security forces to "crush the protests by any means necessary".
The minimum wage increase responds directly to pressure from labour organisations and reflects the Iranian authorities’ effort to stabilise society.
With the rial trading at roughly 1.35 million to the US dollar, basic goods have become unaffordable for many of the workers covered by the Iranian Labour Law. Family and child allowances have also been increased as part of the IRGC's package.
This adjustment will take effect on 20 March, which is the Persian New Year, marking the year 1405 in the Solar Hijri calendar.
The Persian calendar is a solar calendar used officially in Iran and Afghanistan, starting from the year 622 AD.
Economic pressures mount as Iran faces record inflation
Iran adjusts its minimum wage every year to match inflation, a policy now severely tested by war and international sanctions. The 60% increase was approved despite the ongoing military conflict disrupting supply chains and hastening rial depreciation.
The new wage increase, though substantial, remains insufficient and falls short of the 580 million rials (€380) needed monthly for a basic family basket. Labour groups had sought at least 600 million rials (€393).
Food inflation is nearing 90% and overall consumer prices have risen by 44.6% in 2025, meaning the hike’s gains could vanish without deeper reforms.
Conditions have further worsened since 2025.
In February, the Statistical Centre of Iran reported 68.1% inflation, the highest since World War II, while the Iranian central bank claimed 62.2%. Monthly inflation rose by 9.4%, the biggest since the 2022 subsidy reforms.
Food prices jumped 110% year-on-year, including 142% for bread and cereals, 117% for meat and 207% for cooking oil.
Over the past decade, wages have lost over 300% in real purchasing power versus the US dollar. Families have slashed protein consumption, with the poorest seeing steep drops in meat intake.
Many Iranians rely on extra jobs or asset sales, turning to carbohydrate-heavy diets that threaten public health.
The 60% minimum wage increase provides short-term relief for millions of Iranian workers battling the dual pressures of ongoing conflict and record inflation, yet its impact will quickly fade without structural reforms to curb sanctions and currency collapse.
The current price levels eclipse the shortages of the 1940s Anglo-Soviet invasion and occupation of Iran in 1941, when British and Soviet forces jointly occupied the country to secure supply lines and prevent a potential German alliance.
The occupation severely disrupted the Iranian economy — supply chains broke down, food and goods were requisitioned by occupying forces, and inflation spiraled.
The result was significant civilian hardship, including famine conditions in some areas, particularly in 1942–43. Tens of thousands of Iranians died of hunger and disease during this period.
