2025-12-17T08:31:16+00:00
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Shafaq News
The Iraqi government’s move to review
salaries and allowances at the country’s three presidencies has sparked
criticism from employees and legal observers, who say the decision comes at a
sensitive moment, after the cabinet has shifted into a caretaker role with
limited powers.
Employees told Shafaq News that revisiting
pay structures is long overdue, but questioned the timing, warning that any
changes may be left for the next government to implement. Several said the move
risks remaining symbolic without clear mechanisms for enforcement.
Salam al-Radhi, a 50-year-old government
employee, described the review as “a good step,” but salary adjustments should
be tied to actual workload and responsibility. He added that disparities across
the public sector should be addressed: “Staff in revenue-generating ministries
that contribute directly to the state budget should be considered alongside
employees in other institutions.”
Teacher Majda al-Maliki, 40, said most
countries rely on “clear legal frameworks that link salaries to productivity,
effort, and performance,” arguing that Iraq should have adopted such systems
years ago rather than revisiting them during a caretaker period.
Legal questions have also emerged over the
cabinet’s authority to take decisions affecting pay. Constitutional law expert
Ali al-Tamimi told Shafaq News that a caretaker prime minister may issue
decisions that fall within the scope of preparatory studies for the next
government. He explained that the Council of Ministers functions as an institutional
body, “making such measures legally permissible, although their execution
remains dependent on the incoming cabinet.”
The debate follows a meeting of the
Ministerial Council for the Economy on Monday, chaired by Caretaker Prime
Minister Mohammed Shia al-Sudani, which approved a package of measures aimed at
curbing government spending. An official statement said the council reviewed
salaries and allowances at the Presidency of the Republic, the Council of
Representatives, and the Prime Minister’s Office, directing that pay and
allowances be unified across the three institutions.
The package also included a 90 percent
reduction in official travel allowances for state employees, limiting trips to
cases of necessity and requiring ministerial approval.
Al-Sudani further instructed the Ministry
of Planning to update its long-delayed report on unifying the public-sector
salary scale and to move forward with recommendations previously submitted to
the cabinet.
Read more: Cash outside banks, debt on the rise: Iraq’s fiscal challenge
The decisions come as banks are
experiencing tighter liquidity amid rising obligations and weak cash inflows,
prompting concerns over the state’s ability to meet operational spending needs.
Earlier this month, delays were reported in the payment of public-sector
salaries and pensions due to liquidity shortages at state-owned banks,
according to informed sources.
Concerns have also intensified following
reports that Iraq’s domestic debt has climbed to about 91 trillion Iraqi
dinars, roughly $69 billion, the highest level on record. Analysts say the increase
reflects growing structural pressure driven by expanding operational spending
and limited investment.
Spending at senior state institutions has
also drawn scrutiny. Data published by the Eco Iraq Observatory showed that
expenditures at the Presidency of the Republic alone averaged nearly four
billion Iraqi dinars ($3M) per month in 2025, with about 99 percent directed
toward operational costs such as salaries, travel, administration, and
security, while investment spending remained minimal.
Read more: Deficit soars, projects freeze: Iraq heads into 2026 with NO BUDGET
Written and edited by Shafaq News staff.
