🔺 Government decision to raise salaries by 35%: the gap between income and expenses grows worse

▪ Tasnim news agency reported that, in the financial provisions for preparing and drafting the 2026 budget bill, an average 35% increase in the salaries of government employees has been envisaged in steps; a figure that is still far lower than the current inflation rate and less than the IMF’s forecast for inflation next year.

▪ This decision is being put forward while, according to the latest report by the Statistical Center of Iran, annual inflation for Mehr has reached 76.8% and point-to-point inflation has reached 88.7%.

▪ As a result, the average wage growth forecast has a significant gap with the increase in the cost of living over the past year, and inflation in the coming months and in 2026 can quickly erode this amount of salary increase.