ERBIL, Kurdistan Region — The Kurdistan Region's salary-saving system will be abolished because of improved Erbil-Baghdad relations, Kurdistan Region Government (KRG) Prime Minister Nechirvan Barzani announced on Friday.
“Today’s meeting was exclusive to salary saving system in Kurdistan Region. I am glad to announce that starting from this month, the salary savings decision in Kurdistan Region will be removed and the salaries will be paid as they are — in full," said Barzani, referring to the unpopular move by Erbil in 2016.
The latter has championed reforms as the Patriotic of Kurdistan (PUK) list head in last year's elections.
But, Barzani said that the decision to save the salaries was compulsory since 2014 — when Baghdad cut Erbil's share of the federal budget.
KRG @PMBarzani : We’ll make sure that the people of #Kurdistan Region will never pay the price for any political disputes between #Erbil and #Baghdad. pic.twitter.com/05Q4gZNDXw
— Rudaw English (@RudawEnglish) March 8, 2019
He added that certain things contributed to the implementation of the system including the Kurdistan Region's hosting of 1.8 million IDPs and refugees through the ISIS conflict.
Barzani spoke positively of Kurdish MPs in Baghdad for helping them ensure the funds for the salaries, while also thanking new Iraqi Prime Minister Adil Abdul-Mahdi for his “understanding."
He thanked Iraqi Finance Minister Fuad Hussein, a fellow member of the Kurdistan Democratic Party (KDP), who has worked on the issue since assuming the office last fall.
“We hope we will reach a good conclusion in our talks with Baghdad and the Kurdistan Region’s people will no longer pay the price for any political crises with Baghdad,” he added, hoping that the people's salaries won't be used for political gain between Erbil and Baghdad in negotiations.
Barzani also thanked teachers, doctors, the Peshmerga and other civil servants who kept working through the salary saving system.
Talabani said in a Facebook post that "saved money" of the civil servants is a "debt" that the government has to repay.
The deputy PM added that he hopes his cabinet will also announce a mechanism about how to pay it back.
"Today, we made the civil servants happy and we will similarly be committed to our intense work to find job opportunities for the youth. We will work day and night to boost the market and strengthen private sector," Talabani said.
He added their target is not only the civil servants, "but all individuals of Kurdistan."
Amanj Rahim, the secretary of the KRG Council of Ministers, elaborated that two decisions were made.
First was for the "dissolution" of the system, in that light, the KRG will do its best to repay "saved" salaries.
“It was decided to dissolve the Council of Ministers Decree No. 64, issued on 3 February 2016, about the implementation of saving a portion of civil servants’ financial entitlements," said Rahim.
The KRG will “do its best to pay those financial entitlements for Kurdistan Region’s civil servants in the framework of talks with the federal government," he added.
Secondly, the decision directs the KRG Oil and Gas Council to resolve oil issues with the Iraqi government based on constitution.
This is to "radically resolve pending issues regarding oil and finance between Kurdistan government and the federal government within the framework of Iraqi constitution and in the direction of the provision of the budget and financial entitlements of Kurdistan Region," according to Rahim.
Last year, the KRG partially abolished the salary system, notably salary cuts for low-earners in the public sector.
The measures in 2018 were in response to anti-government protestors, calling for an end to the unpopular salary system introduced by the KRG in 2016.
Changes to the unpopular salary savings systems implemented in 2018 and 2019 come amid a partial restoration of the Iraqi federal budget to the Kurdistan Region.
Update 9:47 p.m.
