Iraqi Kurdistan: No changes to salary payments planned for 2026
Shafaq News– Erbil
The Kurdistan Region’s Ministry of Finance and Economy on Sunday denied reports of a new mechanism for salary payments in 2026, confirming it has received no instructions from Baghdad on payroll or pensions.
In a statement, the ministry clarified that no revised agreement exists and that salary procedures remain unchanged. There are no technical or administrative obstacles to submitting payroll data or trial balances, it added, stressing that any payments for 2026 depend on formal guidance from Baghdad.
Politicizing the issue, the ministry warned, undermines public confidence among employees and retirees, while cautioning against circulating “misleading claims,” including references to figures such as 120 billion Iraqi dinars ($81M).
Salary disputes have persisted since March 2023, when Kurdistan’s oil exports via Turkiye’s Ceyhan port were halted following an international arbitration ruling in Baghdad’s favor. The federal government subsequently linked salary payments to the transfer of oil revenues and classified funds sent to the Region as temporary “advances” rather than standard budget allocations, according to statements issued at the time by Iraq’s Oil Ministry.
Exports through Ceyhan resumed in late September 2025 under a federal–Regional arrangement later extended toward year’s end. Kurdistan Regional Government (KRG) spokesperson Peshawa Hawramani previously explained that the deal was initially set for three months and renews automatically unless either side objects.
Under the current revenue-sharing formula, the KRG must transfer oil and non-oil revenues to Baghdad in return for financial entitlements, primarily salaries. Kurdish officials, however, report receiving only about 41% of owed funds over the past three years, describing the shortfall as an “investment blockade” that has intensified fiscal pressure across the Region.
Read more: Into 2026, Baghdad and Erbil face the same disputes—with higher stakes
