Al Monitor | Zep Kalb: Following intense tripartite negotiations, the Iranian government, employers and unions agreed to increase the country's minimum wage�by 19.8%, from�9.29 million rials ($245) per month to�11.14 million rials ($294.50). The deal will see the highest year-on-year growth in real terms since 2002.


Workers and labor unions have scored this victory as the Iranian economy still reels�from a recent downturn and as the threat of new sanctions looms.

This year�s minimum wage negotiations were more protracted and animated than usual.�According to insiders, employers� organizations initially opposed any wage increase. Iran�s private sector argued that a�higher minimum wage�would dampen investment, citing the high costs of labor as well as�the uncompetitive and state-dominated nature of the Iranian economy�and out-of-control smuggling.

On the other hand, labor representatives came to the table demanding a 36%�raise. The eventual figure was reached only when the Ministry of Labor threw its weight behind union delegates.

In Iran, the minimum wage�is set annually in February or March, just before the end of the Iranian New Year, which fell on March 20 this year. The tripartite negotiations�officially involve�a nine-member committee with seats divided equally between the Ministry of Labor, unions and employers� organizations.


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