Pension Law Impacts 25,000 Employees in Iraq
More than 25,000 employees are adversely affected by the pension law changes, resulting in the loss of their January salary. This situation pertains to individuals who resigned as of December 31, 2024, after having served 22 days in January 2022, leading to a total loss of their salary for that period.
Reports indicate that these employees have not yet received their December paychecks, and there has been no decision made to compensate them for the 22 days lost in January. The Iraqi Ministry of Finance has specified that the benefits under the pension law apply only to those who have been pensioners since November 23, 2022.
In response to the challenges facing pensioners, the Kurdistan Regional Government (KRG) is preparing to submit a complaint to the Federal Court. This legal appeal highlights two main points: first, the constitutional mandate for equal rights among all citizens, and second, the contention that two pension laws cannot coexist within the same jurisdiction. The enactment of the unified Iraqi pension law effectively revokes the 2006 pension law, which previously managed the retirement of KRG employees.
The KRG aims to persuade Baghdad to extend pension coverage to all individuals who retired since 2014, advocating for a more inclusive approach rather than limiting the benefits to those retired after 2022.
Another concern discussed during the latest meeting of the Council of Ministers relates to the timely disbursement of salaries for subsequent months. The council addressed the execution of Article 12 of the recently amended budget law, focusing on the assurance of ongoing salary payments. Discussions indicated a positive reception from the Prime Minister of the KRG during a recent delegation visit to Baghdad, along with a commitment to fulfilling financial obligations to the federal government.
