TEHRAN – Keyvan Kashefi, a board member of Iran Chamber of Commerce and Industries, Mines and Agriculture (ICCIMA), has said the increase in wage rates, the elimination of subsidized foreign currency, and the dependence of the foreign exchange rates on the results of the Vienna talks are among the most important concerns of Iranian businessmen in the current Iranian calendar year (started on March 21), the ICCIMA portal reported.

Stating that the increase in wages will be one of the serious problems for business owners this year, Kashefi said: “Although in theory the minimum wage has increased by 57 percent, but taking into account other expenses such as insurance, taxes, etc., the figure will reach 100 percent.”

Speaking in a meeting with the representatives of Kermanshah Province’s private sector, the official warned about the consequences of such a great rise including unemployment and inflation, saying: "I believe that it is not logical to set wages on a solid basis and we should move towards floating and negotiated wages that will both boost production and increase productivity."

He further mentioned the government’s plan for eliminating the allocation of foreign currency with subsidized exchange rates to the imports of basic goods, noting that although such exchange rates have created serious rent and corruption, their elimination must be gradually and based on a well-thought plan.

Kashefi also pointed to the possible results of the nuclear talks that are currently undergoing in Vienna and said that if a good agreement is reached, part of the government's assets will be released and the government will have the freedom to inject currency into the local market and adjust foreign exchange rates.

EF/MA