Peregraf- Ghamgin Mohammed
The Kurdistan Regional Government (KRG) has finally agreed to implement Iraq’s federal pension law—three years after a Federal Court ruling and following persistent protests by pensioners demanding equality with their counterparts in the rest of Iraq.
Previously, under the KRG’s Pension Law No. 27 of 2006, the minimum pension was 300,000 dinars, compared to 600,000 dinars under Iraq’s Federal Pension Law No. 9 of 2014. On November 23, 2022, Iraq’s Federal Supreme Court ruled the KRG’s continued use of the repealed law unconstitutional and ordered full compliance with the 2014 law.
Despite the ruling, implementation was delayed until mid-December 2025, when the KRG—under pressure from Baghdad’s finance officials—enforced the law. The decision also addressed discrepancies in the KRG salary list and reduced the official retirement age from 63 to 60, and voluntary retirement from 50 to 45.
The sudden implementation caught many employees by surprise. Abbas Faizullah, 63, said: “It was a sudden decision. I wasn’t ready to retire—I didn’t want to, but I had no choice.”
Economist Tawana Karim explained to Peregraf that pensions will now increase based on educational qualifications: 5% for diploma holders, 10% for bachelor’s, 15% for master’s, and 20% for PhDs.
Under the new system, if a pension doesn’t match an employee’s previous basic salary, a 1% inflation compensation is added. Pensions are now calculated using the following formula from Article 21 of the law:
(Total base salary over the last three years ÷ 36) × years of service × 2.5 ÷ 100 = monthly pension
There are approximately 250,000 pensioners in the Kurdistan Region, including some suspected of being fake or improperly registered.
Some retirees expressed dissatisfaction. Sadaw Kakl, 62, said, “I didn’t want to retire. My promotions were frozen for years, so my pension is lower than it should be. I worked hard, and this isn’t fair.”
According to Ministry of Finance Decision No. 60, retirees will receive all benefits under the federal pension law, including 18 months’ worth of salary if they meet the legal requirements. Six of those months cover accumulated leave based on the employee’s last basic salary.
MP Sherwan Dubardani confirmed that retirees are entitled to 12 salaries upon retirement, provided they have served at least 25 years. Employees with less than 25 years and one day of service are excluded. The additional six months’ pay for unused leave is paid in full upon retirement—for example, an employee earning 500,000 dinars per month will receive three million dinars for leave.
The new policy has resulted in the retirement of around 30,000 employees across various sectors. To reduce the impact on critical services, the KRG extended the retirement age for specific professions. University professors, forensic and psychiatric doctors, consultants, and civil aviation pilots can now work beyond 60.
Additionally, some employees—such as those reinstated by the federal government, or former Kurdish political detainees—can retire at 65 under special provisions.
Despite the reform, the KRG continues to delay pension payments, worsening retirees’ financial and psychological stress.
“Many pensioners face anxiety and depression due to the sudden loss of routine and professional identity,” psychologist Leila Abbas told Peregraf. “Without proper preparation, retirement feels like the beginning of decline, not rest.”
Meanwhile, the Iraqi Parliament is considering an amendment to raise the retirement age again—from 60 back to 63—creating further uncertainty about future reforms.