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Increasing wages in Iran may lead to increase of inflation

Finance Materials 20 September 2021 14:28 (UTC +04:00)
Increasing wages in Iran may lead to increase of inflation

TEHRAN, Iran, Sept. 20

Trend:

The approval of demands for increasing salaries would cause further inflation, said the member of Iranian parliament 's Plan and Budget Commission Jafar Ghaderi, Trend reports citing Fars News Agency.

Ghaderi indicated the rising demand for increase of salaries from various working class groups, including teachers, nurses, pensioners, university staff and employees of judiciary.

He noted that in the current situation, 50 percent of budget resources are provided by printing money and the government has intense budget deficit, hence the rising salaries would mean the increase of inflation and decline of purchase power of public employees.

The MP has emphasized that the Plan and Budget Organization and the Administrative and Recruitment Organization should submit a bill for reform of coordinated payment system, to have more balance.

"The increase of salaries in the final months of the previous government was against the norm and unfair and in some cases the increase of salaries imposed a heavy financial burden on the current government," said Ghaderi.

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