Iran’s government announced on Sunday a sharp increase in monthly subsidies for citizens, as authorities move to ease mounting living pressures following recent protests, surging inflation, and a steep decline in the value of the Iranian rial.
According to Iran’s Mehr News Agency, government spokesperson Fatemeh Mohajerani said during a press conference that monthly subsidies will rise from 3 million rials to 10 million rial, more than a threefold increase. The support, however, will not be distributed in cash. Instead, the funds will be credited to beneficiaries’ government-issued credit cards, allowing households to purchase essential goods.
Mohajerani said the new subsidy scheme is set to take effect on January 10, 2026, with 10 million rials deposited monthly into eligible households’ accounts.
The government’s move comes amid growing public frustration over rising prices and declining purchasing power. Iran has witnessed repeated waves of social unrest in recent months, fueled by economic hardship and the rapid erosion of the rial.
The spokesperson confirmed that President Masoud Pezeshkian has instructed authorities to ensure subsidies are provided to all Iranian citizens. She also announced an increase in the separate one-million-rial payment granted to citizens, adjusting it to better reflect accelerating inflation.
Recent government data show inflation in Iran has climbed above 40%, largely driven by the persistent depreciation of the national currency. The weakening rial has sharply increased the cost of imported goods, including food and medicine, placing additional strain on household budgets.
By channeling subsidies through credit cards rather than direct cash payments, the government aims to ensure that financial support is used specifically for essential commodities, while also attempting to limit further inflationary pressure on the economy.
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