Eighty percent of Iran's workers below line of poverty

Business Materials 26 September 2011 12:28

Azerbaijan, Baku, Sept. 26/Trend A. Qurbanova/

Currently, 80 percent of Iran's contract workers are living below the poverty line, ILNA reported quoting the Head of the Contract Workers Union Fathollah Bayat.

"Currently 80 percent of contract workers live below the line of poverty, with a monthly salary of less than $360," he added.

Due to implementing the removal of subsidies, workers are facing high living expenses while the current cost of food products for the working class is estimated to $560, he added.

A total of $5 billion is borrowed from the Central Bank of Iran, $3 billion from oil revenues, and $5 billion from public funding to pay off previous subsidies.

The International Monetary Fund recently announced Iran's revenues which resulted from subsidy removals as totaling $60 billion.

The Iranian government expected to economize $54 billion from removing subsides this solar year. Half of the figure will be transferred to public bank accounts to compensate for subsidy removals. Thirty percent will be assigned to the industry and construction sectors, and a further 20 percent of this figure will be transferred to government bank accounts for common expenses.

Meanwhile, the government said it has transferred $21 billion during the first half of the year to public bank accounts.