KRG Reaches Agreement with Baghdad on Military Pensions
The Kurdistan Regional Government (KRG) has successfully negotiated terms with the federal government of Iraq regarding the implementation of Law No. 9 of 2014, concerning military pensions.
In a statement issued on February 10, 2025, the KRG Ministry of Finance confirmed a meeting between key officials from both the federal government and the KRG to discuss the equalization of pensions for individuals residing in Baghdad.
According to the Ministry, "The agreement outlines that by July 2024, the pensions for civilian retirees in the Kurdistan Region will be aligned with those of federal pensioners, implementing the changes as decided.”
Impact of Pension Law on Military Salaries
Sheikh Aziz Ali, director of the Peshmerga pension fund in Sulaimani, highlighted that the implementation of the Iraqi Pension Law will lead to a reduction in military pensions. He stated that pension payments will be calculated based on the basic salary, previous years of service, and a factor of 2.5. Notably, while security forces receive a risk allowance, their basic salary tends to be lower, which will slightly affect the calculated pensions.
Ali noted that individuals who retired after 2014 will have their pensions affected, as the General Directorate of Pensions has indicated that salaries will still be disbursed for February. He referenced the pension law which aims to double the pensions for Peshmerga forces prior to the liberation efforts, potentially influencing future salary increases.
For Peshmerga veterans drawing salaries below 500,000 dinars, adjustments have been made to raise them to this minimum threshold, aligning with the unified pension law.
Protests Over Salary Cuts
In Sulaimani, approximately 3,000 Peshmerga pensioners have experienced salary reductions, contributing to growing discontent. Ali mentioned that formal requests were made to the General Directorate of Pensions to remedy the cuts affecting these veterans.
Federal Court Decision on Pension Equality
Mahir Hussein, head of the Iraqi General Pension Board, addressed a recent press conference, stating that a committee has been established under a decree from the Presidency of the Council of Ministers. This committee has made two visits to the Kurdistan Region to facilitate the execution of a Federal Court decision aimed at unifying pension legislation.
Soran Omar, a member of the Iraqi parliament’s Finance Committee, indicated that the changes to pension salaries will come into effect in February 2025, following the Federal Court’s ruling issued on November 23, 2022. This ruling implies that any prior pension equalizations will be revoked, underscoring the need for a unified approach to pensions.
Disparities Between Pension Laws
Hadi Akram, another parliamentary Finance Committee member, highlighted significant differences between pension laws in Iraq and the Kurdistan Region. Specifically, he noted that allowances for risk as well as provisions for women and children are formulated differently in the two regions. While the Kurdistan Region considers educational qualifications from high school onwards for pension calculations, Iraq requires an institute-level qualification.
Pension Increases Based on Education Level
The following outlines the salary adjustments based on educational credentials under the KRG’s pension law:
- High School Certificate: 15%
- Institute Certificate: 25%
- Master’s Degree: 75%
- Doctorate: 100%
Conversely, the Iraqi pension law stipulates the following increases based on degree level:
- Institute Certificate: 5%
- University Degree: 10%
- Master’s Degree: 15%
- Doctorate: 20%
Comparison of Pre- and Post-2003 Pension Salaries
Sadiq Osman, spokesperson for the Kurdistan Regional Government’s Pensioners Union, remarked that there is no variance in salaries for pensioners before and after 2003, attributing this stability to currency valuation, stating, “I do not believe anyone had more than 500,000 dinars.”
This agreement and the ensuing adjustments represent a significant shift in the administrative and financial landscape for pensions in both the Kurdistan Region and the broader context of Iraq, aiming to create a more equitable system for all retirees.
