Iraqi government resumes public sector raises and promotions

BAGHDAD — The Iraqi government has resumed public sector raises and promotions, exempting them from restrictions imposed under a previous Finance Ministry directive that had suspended such measures pending approval of the 2026 federal budget.

The Ministry of Finance said Sunday that Finance Minister Faleh Al-Sari directed all ministries, entities not affiliated with a ministry and governorates to grant due raises and promotions to state employees and complete the necessary administrative and financial procedures in accordance with existing regulations.

The minister also ordered that raises, promotions, cases related to political dismissal and the recognition of academic qualifications be excluded from the provisions of ministerial circular No. 137137, ensuring those entitlements are not affected by the organizational measures outlined in the directive.

“The release of raises and promotions comes within the framework of the ministry’s commitment to employees’ rights and entitlements and its keenness to enhance job stability,” the ministry said.

The move reverses part of a policy introduced in December 2025, when the Ministry of Finance suspended appointments, raises, promotions and employee service transfers until the 2026 budget was approved. At the time, the ministry said the measures were intended to control spending and regulate financial commitments pending the budget’s passage.

Sunday’s decision allows ministries and governorates to resume processing raises and promotions that had been put on hold under the earlier restrictions. It also confirms that political dismissal cases and the calculation of academic qualifications will not be subject to the limitations contained in the previous circular.

The ministry instructed government institutions to complete all related administrative and financial procedures in line with applicable laws and regulations.

Under Iraq’s public-sector employment system, an annual raise (alawa) is a routine salary increase granted to employees after completing the required period of service, while a promotion (tarfiya) advances an employee to a higher grade on the government pay scale, typically resulting in a larger increase in salary and benefits.