The leading team and the consultation board of the parliament are to meet on Monday to set an extraordinary session to resume discussions on the reform bill after it was returned to the parliament for revision.
The parliament passed a reform bill on February 27 that introduced reforms to the salaries of public employees and pensioners, including cleaning the list of beneficiaries, preventing duplicate benefits and double-salary holders, and institutionalizing the pension program.
Article 3, addressing high-ranking pensioners, termed "special ranks,” drew the most attention. Special ranks includes retired ministers, deputy ministers, consultants, general directors, and some Peshmerga who were awarded the position in return for their service to the Kurdish struggle for freedom before the formation of the KRG when they fought against the previous regime.
The passing of the bill could save the KRG 100-120 billion dinars. With this amount, the KRG could end the unpopular salary saving system entirely.
“The return of the bill and making changes to it will be part of the reforms, because precise revisions of list of martyrs and political prisoners will eliminate doubled salaries and end the saving system,” Omed Khoshnaw, the head of the KDP bloc in the Kurdistan parliament, told Rudaw.
“With this amount the remaining saving system will also be eliminated,” added Khoshnaw, referring to the 100 billion dinars.
The government has recently applied a new mechanism for the distribution of salaries based on the total amount it receives from Baghdad (318 billion dinars) , from oil revenues (445 billion dinars), and from domestic revenue (148 billion dinars), totaling about 910 billion Iraqi dinars. The United States also is providing the KRG with 25 billion dinars monthly.
However, this total figure does not cover other costs like remittances to energy companies, operational and maintenance costs, and other sectors and programs.
The Kurdistan Region needs 900 billion Iraqi dinars (about $759.4 million) to pay its 1.2 million public servants in full and on time, the KRG finance ministry has stated.
Amid mounting pressure from protesters across the Kurdistan Region, the KRG announced on Wednesday that it had reduced salary cuts for high-earners to as low as 30 percent, down from 60 percent. The new system does not apply to those employees whose salaries were cut by 75 percent.
The highly unpopular salary saving system was introduced in 2016 as part of austerity measures designed to address the economic crisis.
Khoshnaw added that he and other MPs have been working to add a section to the bill “to guarantee the payback of savings to the civil servants by depositing them in bank accounts where they could also pay taxes and tariffs.”
A MP from the Patriotic Union of Kurdistan believes they will lose some votes, if they pass the bill, but are determined to do so.
“We are fully supporting the bill even if we lose some votes because it will help achieve the PUK’s main objective which is a just salary system,” Dler Mawati, the head of the PUK bloc, told Rudaw.
He acknowledged that not only do people protesting on the streets want a bill passed, but lawmakers as well.
Bahzad Zebari, the head of the Kurdistan Islamic Union parliamentary faction, echoed the sentiment that passing the bill will be easy as all sides endorse it.
“With this bill passed, there will be no excuse for not abolishing the saving system completely as it will save the government a lot of money,” he argued.
In addition to the reform plan and the KRG working to cut down on its own expenses, a recent decree issued by the Iraqi parliament commits the Iraqi government to pay the KRG Ministry of Martyrs and Anfal Affairs — independent of the Region’s budget share —further eases Erbil’s financial burden, if implemented.
Sulaimani Governor Haval Abubakir said after meeting with representatives for protesting teachers and health workers in Sulaimani on Sunday that the Iraqi parliament decree would provide the KRG with another 40 billion dinars.
The month of March saw waves of mass protests across the Kurdistan Region as civil servants led by teachers and health workers demanded the abolition of the government’s unpopular austerity measures.
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