The Eco-Iraq Observatory announced on Tuesday (August 11, 2026) its rejection of a proposed law granting employees extended leave, warning that it "could become an open-ended financial privilege at the expense of the budget and public funds," at a time when the country is suffering from inflated current expenditures.
In a statement, the Observatory said that "the proposed law submitted by the Parliamentary Finance Committee, which allows employees to take extended leave while receiving 50% of their nominal salary, presents an unbalanced model."
It added that "the proposal means paying a government salary to an employee who does not perform any actual service to the state, while simultaneously allowing them to work in the private sector."
It pointed out that "extending leave to several years while continuing to pay a portion of the salary is not merely an administrative procedure, but could create significant and accumulating financial obligations for the budget, especially if the number of beneficiaries expands." The Eco Iraq Observatory stressed the need to reject any legislation that expands the financial privileges of employees without a clear study of its cost, the number of beneficiaries and its impact on public spending, stressing that "the state cannot address the inflation of the payroll by adding new salaries for employees on leave."
An economic observatory rejects the proposal for extended employee leave and warns of financial burdens on the budget.
