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.
He 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 also 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.
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.
This is a developing story... Update 5:18 p.m.