Iraq’s Ministry of Finance has decided to stop a special payment that was being given to certain government employees.
In a directive sent to the Ministry of Education, the Finance Ministry ordered the retroactive suspension of a 150,000-dinar professional allowance. That’s about $115 per month. The decision takes effect starting June 30, 2024, meaning the allowance will no longer be paid from that date.
The payment had been given to state employees who are officially registered as full-time caregivers.
Under the new directive, employees granted caregiver status will now receive only their basic salary and fixed allowances. These include benefits tied to their academic degree, as well as marital and child allowances. The 150,000-dinar professional allowance is no longer included.
Caregiver status is defined under Law No. 38 of 2013 on the Rights of Persons with Disabilities and Special Needs. The law allows approved government employees to take paid leave in order to care for individuals with severe disabilities. Their leave and entitlements are regulated under that law.
So far, no clear mechanism has been announced explaining how this suspension will be implemented or whether affected employees will need to repay any previously received amounts.
This move comes as Iraq continues to operate under the so-called “1/12 spending rule.” Because there is no approved federal budget, the government is allowed to spend each month only one-twelfth of the previous year’s operational budget. This rule limits broader spending and focuses mainly on covering salaries and pensions.
In simple terms, the government is tightening spending, and this allowance has now been cut as part of those financial restrictions.
