Shafaq News

The Iraqi government’s move to review salaries and allowances at the country’s three presidencies has sparked criticism from employees and legal observers, who say the decision comes at a sensitive moment, after the cabinet has shifted into a caretaker role with limited powers.

Employees told Shafaq News that revisiting pay structures is long overdue, but questioned the timing, warning that any changes may be left for the next government to implement. Several said the move risks remaining symbolic without clear mechanisms for enforcement.

Salam al-Radhi, a 50-year-old government employee, described the review as “a good step,” but salary adjustments should be tied to actual workload and responsibility. He added that disparities across the public sector should be addressed: “Staff in revenue-generating ministries that contribute directly to the state budget should be considered alongside employees in other institutions.”

Teacher Majda al-Maliki, 40, said most countries rely on “clear legal frameworks that link salaries to productivity, effort, and performance,” arguing that Iraq should have adopted such systems years ago rather than revisiting them during a caretaker period.

Legal questions have also emerged over the cabinet’s authority to take decisions affecting pay. Constitutional law expert Ali al-Tamimi told Shafaq News that a caretaker prime minister may issue decisions that fall within the scope of preparatory studies for the next government. He explained that the Council of Ministers functions as an institutional body, “making such measures legally permissible, although their execution remains dependent on the incoming cabinet.”

The debate follows a meeting of the Ministerial Council for the Economy on Monday, chaired by Caretaker Prime Minister Mohammed Shia al-Sudani, which approved a package of measures aimed at curbing government spending. An official statement said the council reviewed salaries and allowances at the Presidency of the Republic, the Council of Representatives, and the Prime Minister’s Office, directing that pay and allowances be unified across the three institutions.

The package also included a 90 percent reduction in official travel allowances for state employees, limiting trips to cases of necessity and requiring ministerial approval.

Al-Sudani further instructed the Ministry of Planning to update its long-delayed report on unifying the public-sector salary scale and to move forward with recommendations previously submitted to the cabinet.

Read more: Cash outside banks, debt on the rise: Iraq’s fiscal challenge

The decisions come as banks are experiencing tighter liquidity amid rising obligations and weak cash inflows, prompting concerns over the state’s ability to meet operational spending needs. Earlier this month, delays were reported in the payment of public-sector salaries and pensions due to liquidity shortages at state-owned banks, according to informed sources.

Concerns have also intensified following reports that Iraq’s domestic debt has climbed to about 91 trillion Iraqi dinars, roughly $69 billion, the highest level on record. Analysts say the increase reflects growing structural pressure driven by expanding operational spending and limited investment.

Spending at senior state institutions has also drawn scrutiny. Data published by the Eco Iraq Observatory showed that expenditures at the Presidency of the Republic alone averaged nearly four billion Iraqi dinars ($3M) per month in 2025, with about 99 percent directed toward operational costs such as salaries, travel, administration, and security, while investment spending remained minimal.

Read more: Deficit soars, projects freeze: Iraq heads into 2026 with NO BUDGET

Written and edited by Shafaq News staff.