KRG decides to end salary cuts; employees to get paid in full

A combined picture of Iraqi dinar banknote

SULAIMANI (ESTA) — Prime Minister Masrour Barzani announced on Sunday the Kurdistan Regional Government (KRG) will put an end to the practice of salary cuts and public servants will receive payment in full this month.  

In 2020, the KRG began cutting salaries of public servants by 18-21 percent to cope with an economic crisis that hit the Kurdistan Region due to a drop in oil prices and the halt of budget transfers to the Region by the federal government.

The decision only affected those whose salaries are above 300,000 dinars ($206).

Following a meeting of the KRG’s Economic High Council, Barzani said the council had decided to end salary cuts based on the amount which the federal government sends to the Region.

In June, Barzani said Erbil and Baghdad had reached an agreement that will see budgetary payment restored to the Region.

Based on the agreement, the federal government would transfer 200 billion dinars ($137 million) to the Kurdistan Region every month.

“Counting on the money sent by Baghdad and the internal incomes, we decided to lift salary cuts,” Barzani said in a televised speech.

“But we do not know how long Baghdad will continue to send the money,” he added.

The prime minister further said the KRG had been “honest and transparent” with people, adding that the government wanted to build a “strong infrastructure” for the Kurdistan Region.

“Besides that, we have worked to diversify revenue sources and we have been successful so far,” he continued.

Public servants and teachers have protested in Sulaimani province against salary cuts in the past months, calling on the KRG to put an end to the practice of payment cuts.

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