Economy Update – Baghdad
On Monday, Suran Omar, a member of the House of Representatives, announced significant changes to the salaries of retirees in the Kurdistan Region, set to take effect from February.
In a statement, Omar indicated that the Ministry of Finance aims to recover funds previously disbursed for retirees’ salaries, commonly known as Khankintian, in the Kurdistan Region. This move is based on a decision by the Federal Court, raising concerns about its implications for the beneficiaries affected by this change.
According to Omar, the Ministry of Finance has confirmed that the adjustment of retirees’ salaries will commence following the Federal Court’s ruling, specifically starting February 23, 2022. This entails the deduction of salaries that were previously covered by the regional government.
Omar emphasized that this action is “unreasonable against retirees,” advocating for the implementation of a unified retirement law applicable to all beneficiaries, irrespective of their retirement date, and not limited to those identified in the recent court decision.
This development occurs amidst ongoing financial disputes between the federal government and the Kurdistan Region concerning salaries and financial allocations. The regional government has previously disbursed retiree salaries without corresponding allocations from Baghdad, and in light of the recent Federal Court decision, Baghdad is pursuing the recovery of amounts paid by the region. This situation has sparked considerable debate regarding the legal ramifications and sustainability of such a process.
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