Iraq, KRI agree to implement Unified Pension Law for employee salary payments
Shafaq News/ Iraq and the Kurdistan Region (KRI) have agreed to implement the Unified Pension Law No. (9) for 2014 concerning employee entitlements, the Kurdish Ministry of Finance and Economy announced on Monday.
"The federal and Kurdistan Regional (KRG) governments reached an agreement in a meeting held on Monday in Baghdad, outlining the mechanisms for implementing the law that regulates employee salary payments in Iraq, ensuring the rights of employees in the Region,” the ministry stated.
The KRG began enforcing the law in July 2024, applying it similarly to the federal government, “reflecting the cooperation in resolving this vital issue,” according to the ministry.
"This deal marks an important step toward improving employee conditions and ensuring stability in salary payments," it added. "It is a positive move toward resolving one of the most prominent unresolved issues between both sides, paving the way for further cooperation and understanding on other economic and financial matters, thus contributing to financial and social stability in Iraq."
The issue of salary payments for employees in the KRI has been one of the most significant unresolved problems between the two governments, with challenges in enforcing the salary distribution law, resulting in prolonged payment delays, protests, and hunger strikes in the Region.
The dispute stems from ongoing political tensions, centering on disagreements over oil revenue sharing. While Baghdad insists that the KRG must transfer all oil production to the State Organization for Marketing of Oil (SOMO), funneling revenues into the national treasury to fund salaries and production costs, Erbil contends that it should deduct production costs before remitting the remaining funds.
