Kurdish Salaries Localization: A Complex Constitutional Challenge
Shirazad Hussein, a member of the Kurdistan Democratic Party, provided insights on the ongoing discussions regarding the localization of employee salaries in the Kurdistan region. On February 11, 2025, he underscored the regional government’s initiative to implement a comprehensive account project that involves several federal banks, emphasizing that this would grant employees the autonomy to select their banking institutions.
Hussein articulated concerns that the settlement of salaries through federal banks undermines the constitutional authority of the Kurdistan Regional Government (KRG). He highlighted that the KRG operates as a federal entity with its own government and parliament, holding specific constitutional mandates.
According to Hussein, the Iraqi constitution dictates that the federal government in Baghdad must allocate the Kurdistan region’s share of the general budget, while the KRG holds the responsibility for the distribution of these funds according to established protocols. He firmly stated that the KRG is the authoritative body in charge of personnel and salary affairs, pointing out that attempts to encroach upon this jurisdiction represent a reduction of the region’s rights.
In another perspective, Kurdish writer and political analyst Raad Rafaa Muhammad posited that the delay in localizing the salaries of employees in the Kurdistan region stems from the Iraqi government’s preference for maintaining amicable relations with dominant political factions in the region, rather than prioritizing the interests of the Kurdish populace.
Muhammad noted that the political parties within the coordination framework are gearing up for the 2025 parliamentary elections, seeking to secure a coalition with the principal Kurdish ruling parties. He argued that this strategy allows them to sidestep the critical issue of employee salaries, thereby avoiding friction with these powerful parties.
He further observed that the reluctance to localize salaries arises from a fear among the primary regional parties that employees from civil, military, and security sectors could distance themselves from the parties’ influence, particularly if their livelihoods are directly tied to salary payments from the Iraqi state.
Significant contention surrounds the issue of salary localization for Kurdistan Region employees, especially in light of recent guidance from the Federal Supreme Court. This clarification indicated that its ruling regarding salary localization applies to all banks sanctioned by the Central Bank operating within the Kurdistan region.
The 2016 ruling number 313 mandates the implementation of salary localization for employees, to be disbursed via electronic cards issued by banks. Additionally, Resolution 281 of 2017 empowers employees to select a bank from those recognized by the Central Bank of Iraq, facilitating the process of establishing a bank account to receive their salaries electronically.
The dynamic interplay of local political interests, constitutional rights, and the urgent need for financial stability shapes this ongoing discussion, highlighting the complexities involved in implementing effective salary localization in the Kurdistan region.
