Page 14 - IRANRptJun18

4.3 Labour and income
4.3.1 Labour market, unemployment dynamics
Iran announces minimum wage hike of 19.6%, beating inflation of 10%
Unemployment rate stood at 12.4% in last fiscal year
Minimum wage increases above or in line with inflation have been announced by Iran’s Supreme Labour Council, the Financial Tribune reported on April 15 citing Mehr News Agency.
Iranians earning the minimum wage will see their basic monthly salary increase 19.55% from Iran rial (IRR) 9.29mn to IRR11.06mn (€208) for the 2017/18 Persian year which began on March 21. Workers whose pay is above the minimum wage will get a 10.4% hike corresponding with inflation, plus an additional IRR846,240 (€15.96).
Given the nationwide street unrest seen in late December and early January in Iran , which was mainly attributed to tensions over economic hardship by most observers, officials might have hesitated in not at least meeting inflation with the hikes. The minimum wage of Iranians remains lower than it was in 2010, when the monthly salary in Iran for the lowest earners was €245. The minimum wage has thus declined 15% in eight years.
According to the Statistical Centre of Iran (SCI), the country’s unemployment rate in the fiscal year just gone (ended March 20) stood at 12.4%, 1.4% up on the previous year. Youth unemployment (covering the 15-29 age range), stood at 25.9%, 2.6% up year on year. Despite the many times the government has stressed the need to boost employment, overall youth unemployment has risen more than 5% in the past three years.
The minimum monthly salary in Iran stands at IRR9.3mn ($240), while the average monthly salary stands at IRR23.3mn ($617) per month, according to a report from the Financial Tribune on April 15. The report shows that living conditions in the country have improved following several years of a drop in the quality of life, due to the removal of sanctions.
The average Iranian earns IRR278.8mn ($7,416) per annum. However, the report noted the average family spends on average 262.3mn ($6,978) per year so little is made in savings. The report also added that the average household consists of 3.4 members and that families of four now account for 30.4% of the society. The majority of families (59.8%) have only one breadwinner. Housing costs account for the biggest slice of income expenditure.
14 IRAN Country Report June 2018 www.intellinews.com