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KRG continues to slash public sector salary

  2021-04-22  | 
 Zhyan News Network
File Photo - Stacks of Iraqi dinar (IQD) banknotes
 Zhyan News Network

SULAIMANI – Kurdistan Regional Government (KRG) Ministry of Finance and Economy said on Thursday (April 22) that it will slash salary to public sector employees by 21 percent cuts and senior officials by 50 percent for March amid rising hopes among the public servants that the KRG will put an end to the austerity scheme after it made a deal with Baghdad  to secure monthly budget transfers. 

The salary distribution will start on Sunday (April 22) and end up on Friday (April 29), according to the ministry’s table.

The passage of Iraq’s 2021 Federal Budget Law has provided the public sector workers with hopes that the KRG will put an end to its salary cuts scheme in effect for more than a year.

On Wednesday, Head of KRG Councils of Diwan Omed Sabah said that the decision regarding whether to pay public servants in full or cuts will be determined in the coming KRG budget.

The KRG has not had a budget since 2013 and budget transfers from Baghdad is vital for filling its coffers.

In 2016, the KRG introduced several austerity measures to return some cash for the public coffer including a halting to promoting publics sectors' ranks and employment. In 2020, it announced salary cuts to public servants earning over 300,000 Iraqi dinars (205,2) following budget freeze by Baghdad. 

The cash-strapped KRG cabinet of Prime Minister Masrour Barzani is still unable to pay its wage bill on in full without cuts following the rise of the global crude oil prices.

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.

The KRG finance ministry has not decided about its mechanism for paying this month's salary so far. 

(Zhyan English)