Journalists and labor rights activists in Iran report a sharp increase in installment and single piece purchases of essential goods, such as food and clothing, following a new wave of price hikes. These price increases, triggered by the rising exchange rate of the dollar since early February 2025, have placed additional strain on Iranian households, forcing many to adopt desperate measures to meet their daily needs.

At the same time, labor activists have expressed strong dissatisfaction with the 1404 (March 2025–March 2026) Nowruz bonus allocated to workers. Rahmatollah Norouzi, a representative from Aliabad-e Katul in Iran’s parliament, criticized the three million toman Nowruz bonus, stating that it is wholly inadequate to address the severe financial hardships faced by Iranian workers and employees.

Government Priorities: Military and Propaganda Over Economic Relief

Despite mounting economic struggles, Iran regime’s Supreme Leader Ali Khamenei continues to prioritize military spending, support for paramilitary groups, and heavy investments in the nuclear industry. Meanwhile, the Iranian regime has allocated more than 94 trillion tomans in the 2025 budget for government-affiliated propaganda and religious institutions that serve to promote Khamenei’s ideology and suppress dissent. However, the government has refused to increase the base wages of workers in line with actual inflation rates.

On February 20, amid growing public dissatisfaction over economic hardships and industrial protests due to ongoing gas and electricity shortages, Iranian regime President Masoud Pezeshkian indirectly admitted his inability to address these systemic issues. Speaking to officials in western Tehran province, he remarked:

“Do you think I have a magic solution? No. Just six months ago, I was a member of parliament, and now I am the president. Everywhere we look, we face imbalances—in water, electricity, gas, finances, land, education, healthcare… Demand is endless, but our resources are limited.”

Economic Desperation: Iranians Buying Food in Installments

The economic crisis has reached such severe levels that essential consumer goods, including clothing, meat, and even basic vegetables like potatoes and carrots, are now being sold in installments. On March 21, ILNA news agency highlighted the alarming consequences of this trend, stating:

“The worsening economic conditions have led to metabolic diseases, malnutrition, and family disintegration. The livelihood crisis for the lower and middle classes has reached a stage where it has surpassed all previous thresholds. The decline in people’s purchasing power is particularly evident among wage earners with fixed incomes. One of the most striking signs of this crisis is the rise in installment-based purchases. Previously, installment plans were used for homes, cars, and household appliances. Now, people are forced to buy even basic food items, such as potatoes and onions, in installments.”

The report further noted that the soaring prices of fruits and vegetables, combined with stagnant wages, have caused a dramatic decline in consumer demand. This has led some online retailers to introduce installment plans for even the simplest food products. The situation has become so dire that meals once considered basic for low-income workers—such as boiled potatoes or potatoes with eggs—are no longer affordable for many.

Wage Stagnation Amid Rising Costs

Mohsen Bagheri, a member of the Supreme Labor Council’s wage committee, criticized the government for failing to account for the recent surge in inflation when determining wage levels. He noted that the 2025 budget bill, which set the base wage for workers, was drafted before the February inflation spike, making it insufficient to cover workers’ living expenses. Bagheri has called for an urgent review and increase in the proposed wage levels.

According to Iranian media, the Pezeshkian administration proposed a base wage of approximately 11.6 million tomans for workers and 12 million tomans for employees (excluding taxes and insurance) in 2025. However, based on World Bank poverty line estimates for economies comparable to Iran’s, a three-person household in Iran now requires a monthly income of at least 40 to 50 million tomans to avoid falling into poverty. This means that over 80% of the Iranian population is currently classified as impoverished.

Conclusion

Iran’s worsening economic crisis is driving millions of citizens to extreme measures simply to survive. While the government continues to prioritize military spending and ideological propaganda, everyday Iranians are struggling with a livelihood crisis that has reached unprecedented levels. Unless urgent steps are taken to address inflation, wage stagnation, and declining purchasing power, the economic hardship facing Iran’s working and middle classes will only deepen further.