Minimum Wage vs. Cost of Living: How Large Is Workers' Financial Gap?

Comparing the minimum wage with the cost of living gives a more accurate picture only when the year of calculation, household composition, and statistical basis of both indicators are clear.

According to Ambassador Arjan, the percentage increase in wages alone is not a suitable measure to measure the living conditions of workers. What is important is the extent to which the household's real expenses are covered by the income received; Especially when the cost of housing, food and other basic necessities increases.

The minimum basic monthly wage for a 30-day month is about 16.6 million Tomans. Including labor allowance and housing allowance, the gross income of a single worker with no seniority record reaches about 21.8 million tomans. This figure is estimated to be around 24 million tomans for a married worker with one child and subject to child rights. The mentioned amounts are before deduction of insurance premium and other possible deductions.

livelihood basket; Wage comparison criteria

The livelihood basket of the working family was estimated to be around 42.9 million tomans in the wage negotiations. Based on this, the gross receipt of 24 million Tomans covers about 56% of this cost and the gap between these two figures reaches about 18.9 million Tomans.

Of course, this comparison is based on the estimation of the livelihood basket at the time of wage negotiations, and it should not be considered equivalent to the daily poverty line.

More recent estimates of the cost of living

In the more recent estimates of some representatives of the labor group, the cost of the household's livelihood has exceeded 80 million Tomans. This figure is the estimate of labor representatives and should not be equated with an official and agreed figure for wage determination.

Assuming a livelihood basket of 80 million tomans, the receipt of 24 million tomans covers only 30% of the estimated costs and the monthly gap reaches more than 56 million tomans.

The poverty line is not the same for all households

The poverty line depends on factors such as the place of residence, the number of household members and the time period of the calculation. The number of working people in the family and whether the owner or tenant of the house is also important in evaluating the living situation.