The Government of Iran confirms 10% increase in salaries for the next Iranian fiscal year, starting on 21 March.
Proportionally to the inflation rate, every year the Government modifies the increase in salaries as it presents the budget bill. With inflation rate decreasing, salaries increase slower.
Currently the inflation rate has hit a lowest record over decades: of 7.5%. Still the Government has confirmed 10% increase in salaries; this is the first time under the current government that the increase in salary is greater than the inflation rate.
Looking at the trend of annual salary increases in the current government shows that for the fiscal year following March 2014, the government proposed an increase of 18 percent. However, since the increase in salary is to correlate with the inflation rate, the parliament rejected this proposal on account of the 30 percent inflation rate. Finally, the government modified its government’s first proposal for the increase in salary up to 20 percent in the annual budget.
For the following fiscal year beginning in March 2015, the inflation rate had reduced to 17 percent. Therefore, the government presented a proposal of 14 percent to the parliament which was passed in spite of some criticism.
This year, following the trend of reduction in the inflation rate, the government proposed a salary increase of 12 percent in the annual budget for the current year. However, certain sectors such as those on retirement pensions and workers earning less than 10 million IRR ($312 at official exchange rate) received an increase of up to 25 percent.
