Iraqis Reject Salary Deductions for Gaza, Lebanon Support: Here’s Why

In a move that ignited widespread debate in Iraq, the Cabinet voted to deduct one percent from the salaries of employees and retirees, labeling it as a “voluntary donation to Lebanon and Gaza.” The decision grants Prime Minister Mohammed Shia' al-Sudani the authority to distribute the funds equally or according to priorities.

The government's decision, made on November 27, 2024, stated: “A voluntary deduction of one percent from the salaries, allowances, and pensions of employees for six months, starting December 1, 2024, to support the Palestinian and Lebanese peoples.”

“If an employee or retiree does not wish to donate, they must submit a formal request to the minister or head of a non-ministerial entity, expressing their refusal to donate. The minister or head will then ensure their name is removed from the donor list.”

‘An Arbitrary Decision’

The Cabinet's vote met fierce opposition from most political factions in parliament, with critics arguing that “what is taken with shame feels like it’s taken by force,” as it stripped Iraqis of control over their own finances, opting for a forced deduction instead.

“Iraqis are widely known for their generosity and compassion, particularly towards Gaza, Lebanon, and other Arab nations. Their commitment to collecting donations through political parties and civil society organizations has always been clear,” stated MP Raad al-Dahlaki, a member of the Azm Alliance (Sunni).

“However, the Cabinet's decision to deduct one percent from the salaries and pensions of employees and retirees, directing the Ministry of Finance to enforce the deductions, with employees required to submit a request if they don't wish to contribute, is misguided.”

“Many Iraqis feel reluctant to submit a request refusing to donate, making the deduction feel as though it was taken by force. The decision should have been handled differently, by first informing employees about the donation option and only deducting from their salary if they agree,” he added.

“The government's decision, as it stands, is arbitrary towards employees. We urge parliamentary leadership to approach the Cabinet and grant employees, especially retirees with insufficient pensions, the freedom to choose.”

Al-Dahlaki emphasized that “Iraqis are generous, and if given the freedom, they may even donate their entire salary.”

In the same context, representative of the Kurdistan Democratic Party Majid Shankali said during a television interview on November 26 that “the form of the decision is entirely administratively flawed. A voluntary donation should involve sending a letter to all state institutions, inviting anyone who wishes to contribute to submit their name, allowing deductions to be made from their salary.”

“But to have the salary deducted directly by the Ministry of Finance, then tell the employee they must submit a request if they don't want to donate [..] how can this be considered a voluntary and optional donation?”

The MP mentioned that “the total salaries of employees and retirees amount to around 80 trillion Iraqi dinars annually. If we deduct one percent, that means more than 800 billion dinars, or over 600 million dollars a year.”

Similarly, Ali Mashkoor, a member of the Coordination Framework (Shiite), said during a television interview that he “opposes the decision entirely, because the employee should not have a sum deducted from their salary by a government decision.”

“Those who wanted to donate have already donated long ago, and we all sent aid to Beirut and Gaza. We didn’t need a government decision; we acted out of humanity and made a voluntary choice. Therefore, what the government has done is not the right decision."

In Mashkoor's view, the decision “impacts the livelihoods of citizens. It's wrong for the government to intervene and impose mandatory donations. Why turn a good deed into a burden? Not everyone wants to donate, but many do out of humanitarian, religious, and national reasons.”

Gaza as a Cover

Regarding the reasons for Iraqis' anger over the salary deductions, Sinan al-Wasfi, an employee at the Iraqi Ministry of Education, said, “What the government is doing is an outdated method that was used by the previous regime [under Saddam Hussein] to collect donations for government projects or wars.”

“The current government is using the same methods Iraq was supposed to have moved on from, aiming to build an international reputation at the expense of Iraqis, especially those with limited incomes. However, we don’t expect these large sums to fully go towards supporting the people of Lebanon or Gaza,” he told Al-Estiklal.

He pointed out that most employees in the institution he belongs to do not want to donate, and they hesitate to request exemption for fear of being accused of opposing the resistance in Lebanon, or something along those lines.

“The government is not trustworthy when it comes to delivering the funds forcibly deducted from salaries, and it might use this money to fund Hezbollah in Lebanon to rebuild what it lost during the war, with nothing going to Gaza,” he added.

“However, if the salary is deducted against our will, I consider it a sacrifice in the name of God, supporting our Muslim brothers in Gaza, who are continuously being massacred, besieged, and in desperate need of everything that can keep them alive.”

Iraqi media figure Omar al-Janabi described the Iraqi government's decision to deduct a percentage from salaries as a “scam, fraud, and blatant theft from the wages of employees and retirees.”

“Al-Sudani [the Iraqi Prime Minister] supports Hezbollah and Iran in every way, even forcing citizens into paying large sums,” he posted on X.

“In Iraq, there are more than five million employees, and if two dollars are deducted from each employee's salary monthly, this means funding Iran's armed wings with ten million dollars every month, against the will of the Iraqi people.”

“How can a retiree or an ordinary employee ask the minister for an exemption? How can they even reach the minister? And who will protect them from the minister's militia and the government's repercussions?” he wondered.

Iraqi media figure Othman al-Mukhtar similarly posted on X, saying, “The Sudani government imposed a 1% salary deduction from Iraqi employees and retirees in favor of Hezbollah militias, while adding the word 'Gaza' for misdirection, of course.”

“The total monthly salary for employees and retirees in Iraq exceeds 4 billion dollars, so you can imagine the amount that will be diverted.”

On the other hand, al-Mukhtar pointed out, “Over 252,000 Sunni Iraqi homes in the north and west have been destroyed, and their owners have been waiting for years for the compensation they deserve, but the government keeps delaying it.”

“The sectarian mentality can see southern Lebanon, 1,200 kilometers away, but fails to acknowledge cities like Baiji or Mosul, which are devastated.”

Extra Burden

On another note, economist Ahmed Eid argues that employees are contracted by the state to receive a salary in exchange for their work, and their pay should not be tampered with unless they fully agree to it.

“Although this decision has humanitarian dimensions, it overlooked its economic and social repercussions on citizens, failing to strike a balance between supporting foreign causes and addressing local challenges,” he told Shafaq News.

“This decision has multiple social and economic effects. Socially, for example, it strengthens the concept of human solidarity between nations, highlighting Iraq's role in supporting humanitarian causes. However, employees may perceive Hezbollah as the sole beneficiary of this decision, using the funds to cover its military and weaponry expenses.”

“This decision has sparked division among citizens, with many feeling it adds an extra burden on a segment already struggling with tough living conditions. Many had been hoping the government would focus on raising salaries, especially as the living standards for numerous Iraqi ministry employees continue to deteriorate,” Eid added.

“Iraq faces challenges in achieving fiscal balance due to its heavy reliance on oil revenues and the stagnation of the non-oil sector. As a result, any additional deductions could heighten economic pressure on individuals and spark criticism of government spending priorities, particularly at a time when the local economy needs investments to boost productivity and create job opportunities.”

From a legal perspective, Iraqi legal expert Taher al-Taie believes that salary deductions in this manner represent a constitutional and legal violation, despite the government's attempt to legitimize this violation by adding the word “voluntary.”

In an interview with Iraqi network Alssaa on November 29, al-Taie explained, “Article 28 of the Constitution stipulates that 'no taxes or fees may be imposed except by law,' whereas the deduction was not through a law but rather a decision by the Cabinet.”

“To sidestep the reality that this is a mandatory deduction and a constitutional violation, the government labeled it 'voluntary,' requiring those who refuse to file a formal exemption request.”

This is not the first time the Iraqi government has resorted to deducting a percentage of employees' salaries after 2003. It had previously implemented such a decision, directing funds to the Popular Mobilization Forces (PMF), adding the phrase “aid to displaced persons,” as it is currently doing with Gaza.

In 2016, the government decided to deduct 4.8% of the total salaries and allowances of all state employees, public sector workers, and retirees. Sixty percent of this amount went to support the PMF, while the remaining 40% was directed to displaced persons fleeing battles against ISIS.

In October 2016, the government announced that it had approved the 2016 financial budget with total expenditures amounting to 106 trillion dinars, against projected revenues of 83 trillion dinars, resulting in a budget deficit of 23 trillion dinars (about $20 billion).

The following year, in the 2017 budget, the parliament voted to reduce the salary deduction from 4.8% to 3.8%, and the deductions ended in 2019.