Iranian MP Voices Concern Over Government Pay Hikes

An Iranian MP has criticized the government's proposal of a 20% salary increase for its employees and an 18% increase for retirees, while inflation in the country exceeds 40%.

"The government's disproportionate wage increase has set the people and retirees against the parliament," stated Alborz Hosseini on Wednesday.

It comes as the nation continues to grapple with persistent anti-regime protests and workers' strikes since 2017, driven by widespread discontent, particularly among the youth, amid an enduring economic crisis.

There has been a doubling of prices for specific food items in 2023 compared to the previous year and data from the Statistical Center of Iran has shown mutton and beef prices soaring by 151% and 132%, respectively.

The repercussions of high inflation are keenly felt by the poor and the middle class, intensifying their struggle to afford basic necessities, especially in terms of food and housing, as salary and wage increases fail to keep pace with inflation.

Despite hopes for a substantial pay hike, Davoud Manzour, the official in charge of economic planning, issued a warning stating that Iran cannot afford it due to a deepening cost-of-living crisis. He emphasized that such actions would result in a further imbalance in the government's budget, triggering withdrawals and expanding the monetary base, ultimately exacerbating inflation.