KRG confirms fulfillment of employee salary obligations, awaits federal funds

Shafaq News/ On Wednesday, the Kurdistan Regional Government (KRG) reiterated its fulfillment of financial obligations, emphasizing that it is now waiting for Baghdad to provide the necessary funding to pay employee salaries.

The KRG announced in a statement that "the KRG continues its efforts with the federal government to provide financial entitlements for employees, and it is awaiting the transfer of salaries for October, November, and December at the earliest opportunity."

The Regional government’s council also called on the federal government in Baghdad to find a permanent solution to the salary deficit issue in its next session, which will be held in Baghdad on Thursday, in accordance with the powers granted to it and under Article 60 of the Iraqi Public Budget Law.

On Monday, Rebaz Hamlan, Iraq's Deputy Minister of Finance, announced significant progress in paying salaries for Kurdistan Region employees. He also confirmed that “Baghdad has disbursed October's salaries (761 billion dinars) and will release November's (759 billion dinars) by week's end.”

The Kurdistan government has also transferred funds to cover part of the salary shortfall, with a monthly need of 996 billion dinars, leaving a gap of 235 billion dinars. The December salary list has been sent to Baghdad, and payments are expected after final audits, according to Hamlan.

Earlier, Al-Sulaymaniyah province and its suburbs are witnessing widespread strikes in several institutions due to a two-month delay in salary payments.

Salaries Issue

The payment of salaries to Kurdistan's civil servants has been a longstanding and complex problem. The KRG has struggled with a severe financial crisis, exacerbated by the suspension of its oil exports in March 2023 due to a court ruling in a dispute between Iraq and Turkiye.

In February 2024, Iraq’s Federal Supreme Court instructed the KRG to provide detailed salary data to facilitate the release of the region's share of the federal budget. However, payment delays have continued, with the KRG accusing Baghdad of inconsistent disbursements.

In September 2024, high-level meetings between Baghdad and Erbil were held to resolve ongoing issues, including salary payments. While Baghdad has since disbursed salaries, delays remain frequent, leaving the Kurdistan Region dependent on local revenues and its contested 12.6% share of the federal budget.