Authorities in Iran have announced a 60 percent increase in the national minimum wage as the country faces mounting economic strain driven by conflict and soaring inflation.

Labour Minister Ahmad Meydari confirmed the decision on Monday, saying the monthly minimum wage will rise from 103 million rials to 166 million rials. The increase is intended to ease the burden on workers struggling with rapidly rising living costs.

The move comes against a backdrop of economic hardship and recent unrest. Protests earlier in 2026, linked largely to inflation and declining living standards, were met with a crackdown by the Islamic Revolutionary Guard Corps. Independent sources reported a high number of casualties during the unrest.

Iran’s leadership, under Ali Khamenei, has faced growing pressure from labour groups to improve wages as the national currency weakens and the cost of essential goods rises sharply. With the rial trading at extremely low levels against the US dollar, many households have struggled to afford basic necessities.

The wage adjustment will take effect on March 20, marking the start of the Persian New Year. Authorities have also announced increases in family and child allowances as part of a broader effort to support households.

Despite the significant rise, analysts and labour representatives say the new wage level remains far below what is needed to cover basic expenses. Estimates suggest a typical family requires more than 580 million rials per month for essential goods, while labour groups had pushed for a higher threshold.

Inflation remains a major concern. Official figures indicate consumer prices rose by 44.6 percent in 2025, while other reports point to even higher levels. Food prices have been particularly affected, with sharp increases in staples such as bread, meat and cooking oil. In some cases, prices have more than doubled over the past year.

Economic pressures have intensified due to ongoing conflict involving Israel and the United States, along with continued sanctions that have disrupted supply chains and weakened the currency further.

Over the past decade, wages in Iran have lost much of their purchasing power. Many families have been forced to take on additional work or sell assets to cope with rising costs. Reports indicate that dietary patterns have shifted, with lower-income households reducing consumption of protein-rich foods in favour of cheaper alternatives.

The government’s latest decision is seen as a short-term measure to provide relief, though economists warn that without broader reforms to address inflation and currency instability, the benefits of the wage increase may be limited.

A new study by artificial intelligence company Anthropic suggests that while AI tools are capable of performing a wide range of tasks, their actual use in the workplace remains far below their theoretical potential.

The report, titled Labour Market Impacts of AI: A New Measure and Early Evidence, draws on real-world usage data from the company’s AI assistant Claude. Researchers examined how AI is being used in professional settings and compared its real-world adoption with the tasks it could theoretically automate.

The study introduces a concept called “observed exposure,” which measures how frequently AI is already being applied in everyday work. This differs from “theoretical capability,” which reflects the tasks AI systems are technically able to perform.

According to the report, theoretical AI coverage exceeds 80 percent in several occupational groups. Jobs in computer and mathematics as well as business and finance rank highest, both reaching 94.3 percent theoretical coverage. Management roles follow at 91.3 percent, while office and administrative support stands at 90 percent.

Other sectors with strong theoretical exposure include legal occupations at 89 percent, architecture and engineering at 84.8 percent, and arts and media roles at 83.7 percent.

Several additional fields also show considerable potential for AI use. Life and social sciences have theoretical coverage of 77 percent, sales roles stand at 62 percent, education and library jobs reach 61.7 percent, healthcare practitioners record 59.9 percent, and social services show potential coverage of just over 50 percent.

Despite these figures, the report found that actual AI adoption remains significantly lower. Computer and math occupations show the highest observed exposure at 35.8 percent, followed by office and administrative work at 34.3 percent. Business and finance roles stand at 28.4 percent, while sales occupations record 26.9 percent.

Legal jobs show observed exposure of 20.4 percent, with arts and media at 19.2 percent and education and library roles at 18.2 percent.

The study also examined how much of AI’s potential is currently being used. Sales positions show the highest proportion of real-world adoption compared with theoretical capability at 43 percent. Office and administrative jobs follow at 38 percent, along with computer and math roles at the same level.

By contrast, architecture and engineering occupations show only about five percent of their theoretical potential being used despite having high technical compatibility with AI systems.

The report identifies several individual professions with particularly high exposure to AI tools. Computer programmers lead the list with observed exposure of 74.5 percent. Customer service representatives follow at 70.1 percent, while data entry keyers stand at 67.1 percent and medical records specialists at 66.7 percent.

Market research analysts and marketing specialists show exposure levels of 64.8 percent, and wholesale sales representatives rank at 62.8 percent.

Researchers also found that workers in the most exposed professions tend to be older, more highly educated and better paid. Women are also more likely to work in roles with higher exposure to AI tools.

Despite growing adoption, the study found no clear increase in unemployment among workers in highly exposed occupations since late 2022. However, there are early signs that hiring of younger workers may be slowing in some of these fields, suggesting that the long-term impact of AI on employment remains uncertain.