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Iran’s Poverty Line Reaches 40 Million Tomans as Wage Gap Widens

Iran’s Poverty Line Reaches 40 Million Tomans as Wage Gap Widens
5 . بەفرانبار . 2725

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Iran’s poverty line has surged to around 40 million tomans per month in major cities such as Tehran, highlighting a growing gap between household incomes and living costs, according to a senior parliamentary official.

Mohammad Motamedi-Zadeh, spokesperson for Iran’s Parliamentary Commission on Article 90, warned in recent remarks that estimates show the poverty line in Tehran has reached approximately 40 million tomans. He added that in some smaller cities and counties, living expenses have risen so sharply that they now rival those of the capital.

The figures underscore the depth of Iran’s ongoing cost-of-living crisis, as rapid inflation and continuous price increases place mounting pressure on households across the country.

Minimum Wage Far Below Poverty Line

The minimum monthly wage for Iranian workers in the year 1404 (2025–2026) has been set at between 12 and 14 million tomans, creating a gap of roughly 25 million tomans compared to the estimated poverty line in Tehran.

Economic analysts say this disparity demonstrates that wage increases, even when implemented on time, offer only temporary relief. Without effective control of inflation, they warn, rising salaries will continue to lag behind living costs, leaving households trapped in persistent financial strain.

Experts also caution that even a hypothetical 100 percent wage increase would merely bring families closer to the poverty line, not above it—especially as inflation continues to accelerate faster than income growth.

Rising Prices Shrink Household Consumption

Surging prices of essential goods have significantly reduced purchasing power. Basic food items, including protein products, dairy, and fruits, have become increasingly unaffordable, forcing many families to cut back on consumption.

As a result, household food baskets have shrunk, refrigerators are increasingly empty, and families are compelled to make difficult choices between essential goods. This situation has placed severe psychological and economic pressure on millions of Iranians.

Social and Economic Consequences

Economists warn that sustained inflation threatens not only household budgets but also food security and social welfare. Families are increasingly sacrificing food quality, postponing necessary purchases, and, in some cases, resorting to lower-quality or less nutritious alternatives to meet basic needs.

These trends could have long-term consequences for public health, particularly for children and adolescents, as well as for Iran’s broader economic future.

Analysts also caution that continued economic hardship may lead to political and social repercussions, including rising public dissatisfaction, declining trust in policymakers, and heightened social tensions. As purchasing power erodes and wage increases fail to keep pace with inflation, the likelihood of local protests and social unrest may grow, presenting increasingly complex challenges for the government.