The financial criteria for the preparation and formulation of the 1406 budget bill indicate the prediction of an average increase of 35% in the salaries of government employees in a staggered manner; A figure that shows more growth compared to the 20% average salary increase in the 1405 budget.
Based on the details of the budget circular of 1406, the salary increase of 1406 was determined.
According to Tasnim’s report, the financial regulations for the preparation and formulation of the 1406 budget bill indicate the prediction of an average increase of 35% in the salaries of government employees in a staggered manner; A figure that shows more growth compared to the 20% average salary increase in the 1405 budget.
According to the financial regulations announced by the president, the average salary increase of government employees next year compared to 1405 is considered to be 35%. This increase is supposed to be applied in a stepwise manner, and its approach is to increase lower salaries further.
Of course, the figure of 35% does not mean the same increase in the salaries of all employees, and the manner of applying this increase will be determined after the review and approval of the Board of Ministers.
Details of salary increases and employee benefits in 1406
Based on these criteria, the executive bodies must also foresee the credit required to pay the performance benefits and one-month bonus, the mission cost and the welfare assistance of the employees in their budget. However, the per capita ceiling of these payments should not exceed the per capita ceiling anticipated in 1405.
Also, the amount of Eid holiday for government employees is determined according to the average increase in salaries predicted in the budget rules, but the final amount of Eid holiday will be determined after the approval of the Cabinet of Ministers.
Salary increase gap with inflation; The challenge of purchasing power of employees
An average salary increase of 35% has been predicted while in the budget of 1405, an average salary increase of 20% was considered. On the other hand, according to the latest statistics of the Iranian Statistics Center, the annual inflation rate reached 76.8% in October 1405, and point-to-point inflation was recorded at 88.7%; In this way, annual inflation is in the range of 80%.
A comparison of these figures shows that even if an average salary increase of 35% is realized next year, there is a significant gap between the projected salary growth and the current inflation rate. Of course, the effect of this increase on the purchasing power of employees will depend on the inflation trend in the next year and the implementation of the stair-step mechanism.
Based on this, the figure of 35% in the financial regulations of the 1406 budget as an average salary increase is predicted, and its final details, including how to distribute the increase among different salary levels, are left to the decision of the Council of Ministers.
