
Is determining wages regionally effective?/ Sina Yousefi
Basic rights and minimum wage are referred to by the International Labor Organization as a set of rights that an employer is obligated to pay to their employees for work done during a specific period of time, and cannot be reduced by the will of either party or collective agreement. The purpose of this component is to protect workers and wage earners against exploitation and meager wages. Setting a minimum wage ensures fair and equitable participation and contribution of all individuals in development and progress, and it can be said that this issue and component is one of the elements of overcoming poverty and reducing inequality. This system should not be viewed separately and used in isolation, but should be designed in a way that complements and strengthens other social and employment policies. It should also be noted that in minimum wage policy, determining the amount of minimum wage is one of the most challenging issues. If it is set too low, it will not increase the income of the workforce and therefore will not fulfill its mission of fighting poverty. If it is set too
More than 90% of member countries of the International Labor Organization, both through laws and mandatory labor contracts, take action to determine minimum wages. In Iran, the High Council of Labor annually sets minimum wages by considering factors such as economic conditions and inflation. In fact, Article 42 of the Labor Law obligates the High Council of Labor to determine minimum wages every year based on Article 41 of the Labor Law. This council announces the minimum wage each year based on the declared inflation rate by the Central Bank of the Islamic Republic of Iran and the minimum living expenses of an average family.
Given the centralized structure of the government in Iran, the system used to determine and enforce the minimum wage is not regional, but rather national and uniform. Regional minimum wage refers to a system and method of determining the base salary that takes into account regional differences and is not applied uniformly. However, it should be noted that before the Islamic Revolution and in accordance with the resolution of the Supreme Labor Council dated 1339, the minimum wage was determined regionally and provincially, and in each province, a committee consisting of three representatives of workers, three representatives of employers, and three representatives from the government would determine the minimum wage. In 1356, the regional system was abolished and emphasis was placed on determining the minimum wage nationally.
Almost all countries consider regional criteria in determining the base salary and wages, rather than setting a uniform wage for the entire country. There are a few countries that have chosen a national and universal system for this purpose. It should be noted that, contrary to the majority of countries and the explicit provision of Article 41 of the Labor Law, which mentions criteria such as “in different regions of the country” and “in different industries” for determining wages, Iran applies a national and universal system for determining the base salary. This is done in order to avoid the complexities of legislation and to simplify implementation. However, this approach has led to imbalances in regional labor markets and inequalities and discrimination in the job market in a country like Iran, which has significant regional differences. It should be noted that if the real and tangible criteria are taken into account in determining the minimum wage, it is possible to move beyond setting a national and universal wage and use local and regional criteria. In other words, if the real
Differences in cost of living, differences in labor market indicators, and differences in the structure of economic enterprises in different regions necessitate that the minimum wage also varies in different regions of Iran. In fact, the living standards of people, their income and expenses in different regions, the unemployment rate or labor market indicators, average wages, productivity, economic growth in different regions, and insurance coverage for workers in each region are among the reasons and criteria for determining regional wages. It seems that with careful examination and utilizing the experiences of different countries, moving towards such an approach and system is possible, given the existence of legal provisions and explicit laws in this regard.
Countries such as China, Indonesia, India, the United States, Canada, and many European Union member states use a regional approach and system for determining wages in order to achieve balance between different regions of the country. The advantages and strengths of regional wage determination include reducing income inequality, promoting labor market convergence, and strengthening social participation in different regions, which can provide opportunities for development through both supportive and productive approaches. In fact, it can be said that setting a national or country-wide minimum wage can lead to discrimination among workers in different parts of the country. This means that if regional challenges and criteria are not taken into account when determining wages, individuals may still be trapped in poverty despite having a job and receiving a salary.
Taking into consideration the experience of implementing such a system in the country in the years before the revolution, based on dividing the country into three regions, after careful examination and updating of this division, it is possible to apply a regional approach in determining the minimum wage. However, it should be noted that such an action may not be able to improve the unstable situation in a sick economy and may even lead to an irreparable situation. In other words, it must be considered that in case of unprofessional and unexamined implementation of such an approach, challenges and threats may arise, such as increased migration between regions, increased unemployment, and conflicts of interest between different regions.
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