Aerospace & DefenseData

Baghdad’s Finance Ministry Clears Air: Delay in Kurdistan Employee Salaries Not Their Fault

Economy News – Baghdad

The Ministry of Finance has cited delays in salary disbursement for employees in the Kurdistan Region as primarily due to the regional government’s failure to reconcile employee payroll and retiree data.

This statement comes in response to comments made by the ministry’s representative, Reibaz, regarding salary delays during a meeting with Prime Minister Mohammed Shia Al-Sudani.

The Ministry highlighted, “We handle the salary files for regional employees with meticulous professionalism, aligned with standard procedures applied to federal ministries and governorates. Repeatedly, we reaffirm that salary delays are attributable to necessary compliance with the Federal Court’s ruling, which has been in place for over a year.”

It was further stated that “the region has yet to provide vital data regarding the localization of salaries for its employees across all banking systems, not limited to governmental institutions, as mandated by the Federal Court. This standard is essential for equitable treatment of all state workers and is a point of adherence from the Ministry of Finance.”

The federal finance statement indicated that part of the salary delays is due to the lack of separation for those employees in the region who have retired. Over ten days, a team from the Ministry has been collaborating with regional officials to sort and validate employee lists, accurately distinguishing retirees and calculating their pension entitlements according to the amended Retirement Law No. 26 of 2019. The process is expected to address over 29,000 employees identified for retirement, as discussed by regional representatives in their recent meetings in Baghdad.

The Ministry also emphasized the need to segregate payments for the Peshmerga forces, who are among the Federal Land Forces. Presently, salaries are covered from the region’s budget, leading to funding deficits, although these personnel should receive their compensations from the Federal Ministry of Defense, where budget allocations have remained unutilized for the past two years.

In its statement, the Ministry reiterated the importance of the region providing a comprehensive report on individuals receiving multiple salaries or falling under regional legislation. This accountability will prevent exclusions from salary disbursement and ensure compliance with local laws.

The Ministry of Finance underscored that implementing the resettlement of employee salaries is fundamental to uphold the Federal Court’s decision. This will eliminate reliance on paper-based lists and ensure that all eligible employees receive their salaries promptly every month—a constitutional right outlined for every state worker. The Ministry has clarified that the current delays are not due to their actions but related to regional governance.

Additionally, the Ministry noted that the monthly review for December 2024 has not yet been finalized due to existing entry errors. Staff from the Accounting Department in the Federal Ministry of Finance are diligently collaborating with their regional counterparts to rectify these issues.

The Ministry concluded its statement by confirming its ongoing commitment to disbursing salaries for state employees, particularly for January, as the month has yet to conclude.

To receive more updates, subscribe to our channel on Tilekram

Shares: