Millions of Iranians are struggling to cover basic expenses after more than five months of war with the United States, a naval blockade of Iranian ports and sharply rising prices. In Tehran, workers in jobs such as teaching, cashiering and sales can earn less than 200 million rials ($107) a month, while some receive below the basic minimum wage of about 166 million rials ($88).
The pressure is especially severe for households dependent on low wages or irregular work. A subsistence package for an average 3.3-person worker household was estimated at 430 million rials ($230) when Iran approved a 60 percent minimum-wage increase in March, according to the source report.
Inflation is reshaping everyday spending
The Statistical Center of Iran reported year-on-year inflation of about 88 percent at the end of July, with food inflation above 128 percent. That meant the same food basket cost roughly 2.28 times what it had cost in July 2025.
Inflation was particularly high for oils and fats, at 261 percent year on year, followed by milk, cheese and eggs at 147 percent, and meat and poultry at 145 percent. For a minimum-wage worker receiving government support, 1kg of lamb could consume about 10 percent of monthly wages, while 10kg of Iranian rice could take more than one-fifth.
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Workers are taking jobs outside their professions
Saeed, a 26-year-old Tehran resident with a master’s degree in Persian literature, said he is seeking better-paid work than his elementary school teaching job. He said some employers demand 12-hour days, sometimes six days a week, without insurance and with deductions from pay.
Youth unemployment reached 23.4 percent in spring 2026, up 3.7 percentage points from a year earlier, while overall unemployment stood at 9.1 percent, the Statistical Center said. Labour participation was 40 percent, leaving many working-age people outside the official labour force and often reliant on informal work.
Businesses and side incomes are also under strain
Yashar, who co-owns a grocery shop in Lahijan with his mother, said slow business and rising basic costs leave them short of the money needed to replenish stock, despite owning their home and renting out a second small shop.
More context: Iran links Strait of Hormuz reopening to US concessions.
In Tehran, Ladan supplements her office job by selling jewellery and small goods online. She said more than a dozen sales produced only about 20 million rials—less than $11—in profit over one week, showing how side work may provide income without creating a reliable path to financial security.
Government faces difficult choices
President Masoud Pezeshkian said the war and the US blockade of southern ports had raised costs for the government by restricting oil sales, damaging some factories and reducing its ability to collect taxes. He said the state must continue funding economic activity while facing those pressures.
The administration is considering a significant petrol-price increase and tighter monthly fuel quotas for personal vehicles after another increase in December. Officials have been cautious because earlier price rises contributed to nationwide protests. Pezeshkian and other senior figures have supported a diplomatic resolution with Washington, while talks involving Oman and other mediators continue over shipping through the Strait of Hormuz; no short-term agreement with the US is reported in the supplied material.
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