Iran faces widening gap between worker wages and cost of living

Iran is facing a widening gap between worker wages and the cost of living, particularly regarding food and housing. Labor activists estimate the minimum monthly livelihood basket for a household at approximately 80 to 90 million tomans. This stands in stark contrast to the base wage for 1405, which is set at roughly 16.6 million tomans. High inflation rates, including a 127.5 percent point-to-point increase in food and beverage costs, have significantly eroded purchasing power.

The housing market in Tehran has become increasingly inaccessible for the working class. In southern and peripheral districts of the capital, the price for the cheapest apartments has surpassed 5 billion tomans. For a married worker with one child earning a maximum of 24 million tomans per month, purchasing even a modest 70-square-meter unit in a lower-income area would require over 17 years of total savings, assuming zero expenditure on food, clothing, or healthcare. In more expensive areas like Tehrasar, the timeline extends to nearly 48 years.

Experts have criticized recent revisions to the Comprehensive Housing Plan, warning that such changes may stall major initiatives like the National Housing Movement. There are concerns that current policy shifts might promote smaller, ‘miniature’ homes and increased singlehood rather than addressing the fundamental need for affordable family housing as outlined in the Seventh Development Plan.