Salary crisis resolved: Erbil, Baghdad reach agreement

Shafaq News/ The Kurdistan Regional Government (KRG) and the Iraqi government have reached a final agreement on the disbursement of public sector salaries for 2025, the KRG’s Ministry of Finance said on Monday.

The agreement follows 15 days of technical discussions between finance ministry teams from both sides to resolve outstanding issues, process requests, and finalize salary lists for employees, retirees, military personnel, and security forces in the Kurdistan region, the ministry said in a statement.

A KRG delegation, currently in Baghdad, thanked Prime Minister Mohammed Shia al-Sudani, Deputy Prime Minister Fuad Hussein, and federal Finance Minister Taif Sami for their efforts in facilitating the deal. The delegation also acknowledged the support of Iraqi parliamentary leadership and political blocs in approving budget amendments, particularly those related to oil exports.

The ministry said technical teams are finalizing the transfer of January salary payments, which are expected to be deposited in the KRG finance ministry’s bank account soon.

The agreement comes amid a prolonged salary crisis in the Kurdistan region, where government employees have frequently faced delays in salary disbursements due to financial disputes between Erbil and Baghdad. The crisis intensified after Iraq’s Supreme Court ruled in 2022 that the KRG’s independent oil sales were unconstitutional, forcing the region to rely on Baghdad for funding.

Despite agreements to integrate Kurdistan’s oil revenues into Iraq’s federal budget framework, salary payments have remained inconsistent, with repeated disputes over financial entitlements. The delays have triggered protests across Erbil and Al-Sulaymaniyah and deepened economic hardship for public sector workers.