May 1 marked International Workers’ Day, also known as Labor Day in some countries. For Iranian workers, however, the day was far from a celebration of their contributions to the economy and national development. Instead, it served as a stark reminder of meager wages, widespread poverty, and the persistent denial of labor rights.
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This year, International Workers’ Day arrived amid a surge of layoffs triggered by stagflation, exacerbated by prolonged internet shutdowns and the ongoing consequences of war.
For decades, Iranian workers have struggled to secure basic labor rights and fair wages. However, the Islamic Republic of Iran has not only neglected these rights but has compounded the problem by blocking the lawful operation of independent labor unions, scrutinizing labor activism, and suppressing workers’ movements.
The absence of independent labor organizations has left employees across multiple sectors grappling with deeply rooted problems that affect their livelihoods, dignity, health, and even survival.
Among the most urgent concerns is workplace safety, which has increasingly been neglected due to the additional costs it imposes on employers. The failure to adhere to safety standards has become a direct threat to workers’ health and lives.
Alarmingly, the incidence of work-related injuries and fatalities in Iran exceeds the global average.
Between last year’s International Workers’ Day and this year, at least 5,019 Iranian workers were either injured or killed in workplace accidents. Within the same period, at least 4,433 workers suffered injuries from work-related incidents, while 586 lost their lives.
Another central demand of workers across Iran’s economy is the right to earn a wage that keeps pace with inflation.
For years, workers’ earnings have eroded in value due to the combined effects of inflation and currency devaluation. Annual wage increases have consistently fallen short of inflation rates, diminishing workers’ purchasing power and pushing many below the absolute poverty line.
For example, although wages were increased by approximately 60 percent in the new year, this adjustment is largely nominal and fails to improve living standards. In reality, workers are unable to maintain the same quality of life as the previous year, as the dollar value of wages has declined sharply.
In 2026, the value of Iranian workers’ wages in U.S. dollars fell by roughly 25 percent compared to 2025. Whereas the minimum wage in April 2025 was about $125, it has dropped to approximately $90 in the new year.
This decline in real wages occurs amid accelerating inflation. Within a single Iranian year (beginning March 21), workers’ purchasing power continues to erode month by month due to rising prices and currency devaluation.
According to labor activists’ calculations, at the beginning of April 2026, the “living basket” — the estimated cost for essential needs for a three-person household in Tehran — stood at 65 million tomans (around $420).
In contrast, the wage of a married worker with one child, including all employment benefits such as housing and child allowances, is only about 25 million tomans (roughly $162). This comparison reveals that a worker’s income would cover merely 10 days of essential expenses each month.
Data also indicates a severe decline in the living standards of Iranian workers. Food prices rose by 115 percent in April 2026 compared to the previous year, while housing rents increased by 50 to 100 percent across different cities. In this context, even a 60 percent wage increase is insufficient to offset the soaring cost of living.
Compounding these economic hardships is the prevalence of temporary employment contracts, which exclude many workers from additional benefits and insurance, leaving them with only a base salary.
Recent weeks have also seen a surge in job insecurity. A wave of layoffs has swept across Iran, triggered by economic stagnation linked to war and a 10-week internet blackout.
Government officials state that 2 million jobs were lost in the last two months. However, labor activists believe this number is closer to 4 million, with most of those affected being workers.
Layoffs continue, and unemployment is expected to rise further by the end of spring. Given that Iran has an employed workforce of 24 million, the loss of four million jobs represents roughly 20 percent of the labor force — a staggering figure.
Reports indicate that many private-sector and contracting company employers have presented workers with stark choices after the Iranian New Year (Nowruz) holidays: accept reduced wages and benefits or face unemployment.
According to the Iranian Labor News Agency (ILNA), in some workplaces, half the staff were placed on unemployment insurance, while the remaining workers received minimal coverage and were expected to accept very low wages.
For workers acutely aware of the labor market crisis yet reliant on any income to survive, such conditions leave little choice but to accept these unfair terms.
The current situation in Iran’s labor market, combined with declining real incomes and rising living costs, illustrates a severe crisis affecting millions of working-class families. Families facing scarcity, poverty, and stagnant wages are compelled to make agonizing decisions, slashing vital expenses like healthcare to stay afloat.
Government support programs have largely failed to mitigate this crisis, leaving low-income households without meaningful relief. As a result, absolute poverty has expanded, malnutrition has increased, and the social repercussions, such as child school dropouts, continue to rise among vulnerable communities.
