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Ministry of Finance Clarifies Responsibility Regarding Delay in Employee Salaries in Kurdistan Region
The Ministry of Finance has publicly stated that it is not responsible for the delays in salary disbursement for employees in the Kurdistan region, citing a lack of necessary data from the Kurdistan government. In a recent statement, the ministry responded to comments made by the Undersecretary of the Ministry of Finance in the region, Rebas, claiming that his assertions regarding salary delays were inaccurate. The Ministry emphasized its commitment to handling the payroll of employees in the Kurdistan Region with the same professionalism it applies to federal ministries and provinces.
The Ministry reiterated that the ongoing delays in salaries result from the Kurdistan region’s failure to furnish essential data required for localizing employee salaries across all banks, not just governmental institutions. This requirement aligns with a ruling from the Federal Court. The Ministry of Finance clarified its determination to maintain parity between employees in the region and those in the federal domain, especially regarding retiree allocations. Current legislation, specifically Retirement Law No. 26 of 2019, mandates the calculation of benefits, including end-of-service bonuses for retirees; however, discrepancies remain concerning the classification of former employees and payment responsibility for certain military personnel.
The Ministry raised concerns about the misalignment in payroll systems, particularly regarding Peshmerga forces who, although part of federal military ranks, are reportedly receiving salaries from the region’s budget. This misallocation has contributed to significant salary deficits, as these forces should be compensated through the federal Ministry of Defense, which has presented their financial claims for over two years without fulfillment.
Moreover, the Ministry requested clarity on individuals receiving multiple salaries and urged the Kurdistan region to provide copies of relevant laws to prevent further discrepancies in payroll lists. The issue of salary localization is regarded as critical to ensuring consistent and timely salary distributions, as outlined by constitutional rights for all employees.
Furthermore, the Ministry reaffirmed that the ongoing salary delays are largely attributed to the region’s failure to collaborate effectively with representatives from the Ministry of Finance. To facilitate salaries each month, the accounting department requires timely submission of the previous month’s financial data. This step is crucial for publishing the final state accounts and ensuring compliance with the Financial Management Law No. 6 of 2019, which dictates the unification of financial records and the rectification of any discrepancies prior to submission to upper governmental bodies.
