Under the proposal, roughly $10 billion that had been spent each year to subsidize certain imports, will now be given directly to the public.
Eligible Iranians will get 1 million Iranian tomans, which is around $7, in the form of credit that can be used to buy goods.
The labor minister said the payments would be handed out to about 80 million people, which is the majority of Iran’s population.
Iran’s economy has been hit by sanctions and declining oil revenues which have led to protests.
The currency has lost more than half its value against the U.S. dollar.
The Statistical Center of Iran, a state-run body under Iran’s regime, reported in December that the average annual inflation rate also reached 42.2%, according widespread protests that included merchants, traders and university students, according to the Times. Marketplaces have been shut down and rallies have been held on campuses.
As previously reported by Fox News Digital, according to the U.S.-based Human Rights Activists in Iran (HRAI), the intensity of the protests has reached at least 78 cities and 222 locations.
Protesters have been demanding the end of the regime controlled by the 86-year-old Supreme Leader Ali Khamenei.
The group said the regime has killed at least 20 people, including three children, and arrested 990 people. Khamenei’s security forces have detained more than 40 children, HRAI noted.
Fox News Digital's Benjamin Weinthal contributed to this report.