KRG Employees Face Over 70 Days Without Salaries

Economy 01:39 PM - 2025-07-13

Iraqi dinars.

The Iraqi federal government and the Kurdistan Regional Government (KRG) continue to grapple with unresolved financial disputes, as public employees in the Kurdistan Region have now gone without salaries for approximately 73 days. The fate of their May and June payments remains uncertain, deepening concerns over the welfare of thousands of civil servants.

In a bid to address the impasse, Iraqi Prime Minister Mohammed Shia’ Al Sudani has established a ministerial committee tasked with resolving outstanding financial obligations between the federal government and the KRG. The committee comprises six ministers, including the Deputy Prime Minister and Minister of Planning, who will lead discussions alongside the Ministers of Construction and Housing, Higher Education, Justice, Health, and Industry.

The Prime Minister’s media office issued a statement on 8 July 2025 confirming the committee’s mandate to examine two proposals—one from federal authorities and another from the KRG—regarding the delivery of oil and non-oil revenues, as well as the payment and settlement of regional public sector salaries. The committee is expected to engage with all relevant stakeholders and submit recommendations to the Council of Ministers for prompt decision-making.

Dire Conditions for Kurdistan Region Employees

Harem Kamal Agha, head of the Patriotic Union of Kurdistan (PUK) bloc in the Iraqi Parliament, described the situation as “dire,” urging both Erbil and Baghdad to urgently resolve the crisis. He highlighted that much of the dispute stems from demands by oil companies operating in the region, warning that public employees should not be made victims of these political and economic tensions.

Echoing this concern, PUK lawmaker Bryar Rashid called on the Iraqi Parliament to take a firm stance on the prolonged salary delays. “Employees in the Kurdistan Region have not received their salaries for over 73 days,” Rashid told PUKMEDIA, noting that the issue was raised during a recent parliamentary session.

Background and Ongoing Challenges

The salary crisis in the Kurdistan Region is part of a decade-long standoff rooted in disputes over oil revenue sharing, budget allocations, and constitutional interpretations. While the Kurdistan Region’s share of the federal budget is legally set at 12.67%, repeated disagreements and legal rulings have complicated the transfer of funds.

The situation worsened after the Iraqi federal government suspended the disbursement of the KRG's share of the national budget in May, asserting that the Region’s full share of the national budget for 2023, 2024, and 2025—approved by Parliament—had already been disbursed. 

Recent attempts to resolve the crisis include the formation of the current ministerial committee and political assurances from Iraqi officials to release Kurdistan’s financial entitlements. However, the deadlock persists, with both sides emphasising the need for dialogue and mutual understanding to reach a sustainable solution.



PUKMEDIA