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KRG to slash salary by 21 percent despite calls to end cuts

  2021-06-24  | 
 Zhyan News Network
For illustrative purpose - man count Iraqi dinars
 Zhyan News Network

SULAIMANI – Kurdistan Regional Government (KRG) Ministry of Finance and Economy said on Thursday (June 24) that it will distribute salary for June starting on Friday with twenty-one cuts, the same mechanism in effect since the outset of 2021.

The finance ministry said in a statement that it will pay public sector employees affiliated with the Ministry of Health on Friday and Saturday. 

The ministry did not reveal any timetable about when other ministries and institutions will be paid. 

On Wednesday, spokesperson for the Iraqi government said that Baghdad would send 200 billion Iraqi dinars to the Kurdistan Region as an advancement payment.

The yet-to-be-sent Iraqi government funding has sparked outrage among the finance, integrity committees and Shia lawmakers in the Iraqi legislature as they consider it a violation to the Iraqi budget law. 

In late March, Iraq passed its belated budget law for 2021 after agreements between the Kurdish and federal authorities.

Baghdad has not sent a budget transfer to Region as of yet.

The approval of the budget law filled the Region’s civil servants with hopes it would put an end to salary cuts and delays imposed by the KRG for over a year.

Throughout 2020, the KRG missed five months’ worth of salaries to its public servants and paid one in full and slashed others by either eighteen or twenty-one percent citing the COVID-19 pandemic, budget with Baghdad and low oil prices. 

It paid all the past six months in 2021 by twenty-one cuts despite considerable rises in crude oil prices and the devaluation of the Iraqi dinars against the US dollars by over 25 percent.

(Zhyan English)