Kurdistan Region’s parliament passes contentious reform bill

ERBIL, Kurdistan Region – A contentious public salary reform bill was approved by the Kurdistan Region’s parliament on Thursday. The Kurdistan Regional Government (KRG) insists the bill will result in fairness and for public service employees.

Eighty nine of a 111 MP total legislature voted yes to the bill. "We congratulate ourselves and the people of Kurdistan," parliament speaker Rewaz Fayaq said upon its passing. 

The bill had the support of the three largest parties in the legislature, namely Kurdistan Democratic Party (KDP), Patriotic Union of Kurdistan (PUK), and Gorran (Change) Movement.

Titled Reform of Pensions, Salaries, Allowances, Grants and other Benefits, the bill underwent two days of heated parliament debate of Sunday and Monday. 

Its main aims include the elimination of ghost employees and the claiming of more than one civil service salary, a reduction of pensions of MPs and other high ranking officials, and standardized retirement regulations. Another of its main targets is to eliminate illegally retired individuals, who have never served in security institutions or in government but get a retirement salary for being part of party patronage networks, from the payroll.

“We ensure all salary takers that not even one dinar in the rights and entitlements of theirs will be deducted. Rather, those who have taken salaries they have not been entitled to in past years will be eliminated from the list of salaries,” Amanj Raheem, secretary of the Council of Ministers said in a pre-vote press conference on Thursday.

“We have decided that there will be reform, and there is no going back from that,” KRG spokesperson Jutiar Adil said in the joint press conference.

Omed Sabah, chief of staff of the Council of Ministers told the press the government has 60 days to implement the law.

“In parallel to implementing the first step of the law, steps to digitize the banking system and activating personal accounts of employees will start,” Sabah added.

Based on a KRG agreement with parliament, a financial oversight authority and an integrity commission will work on the law alongside the government. Every three months, the government has to prepare a parliamentary report on progress of the law.

While lauded by the KDP, PUK, and Gorran - who also form the KRG cabinet – the bill was criticized by opposition parties. New Generation left the parliament hall, while the Kurdistan Islamic Union (KIU) and Islamic Group (Komal) abstained from voting.

Abdulstar Majeed, head of Komal’s parliamentary bloc said in a subsequent press conference that they abstained from voting because parliament refused to discuss the KRG’s failure to pay civil sector salaries during the financial crisis in past years and its refusal to set a minimum pension level for retirees.

“What took place in the parliament hall was cutting money from others for the pockets of high-ranking officials at the expense of the pocket of poor people,” a New Generation MP said after leaving the parliament hall.

The MP claimed that each parliament member, ministers, and other high-ranking officials will have a minimum retirement pension of 4,100,000 IQD (roughly $3,443).

“We suggested for the lowest salary for poor people [‘s retirement] be minimum 500,000 ($419), but they were unwilling to instill this section [in the bill],” added the MP.

Despite criticism, the Kurdistan Region’s Prime Minister lauded the bill’s passing, calling it “central” to his cabinet’s reform agenda.

“This Bill is central to the government’s plans to increase public trust, streamline public expenditure, and ensure a fair system for our valued public servants and brave Peshmerga forces,” PM Masrour Barzani said on Twitter on Thursday.

“The final version provides important guarantees for all public sector employees concerning their salaries, pensions and allowances, reinforcing the principle that those who are entitled to public benefits are rewarded and protected appropriately,” added the PM.

“The Reform Bill demonstrates the KRG's commitment to root out corruption. It is also an important milestone on the journey towards making our civil service more modern, transparent and professional, so it delivers better services and benefits to all Kurdistanis.”

The bill will officially made law when it is signed by Kurdistan Region President Nechirvan Barzani.