Baghdad transfers funds for Kurdistan Region salaries, ‘solution’ for chronic delays promised

ERBIL — The Kurdistan Regional Government confirmed Wednesday that Baghdad has transferred funds for January 2025 salaries, offering relief to public sector employees who have faced repeated wage delays.

In a Facebook post, KRG spokesperson Peshawa Hawramani stated, “The Federal Ministry of Finance has deposited 958,012,332,759 Iraqi dinars (approximately $638.67 million USD) into the account of the KRG Ministry of Finance. The salary distribution process will begin soon.”

For months, public servants in the Kurdistan Region have endured late payments, with December 2024 salaries still outstanding. The federal government’s transfer follows prolonged negotiations aimed at settling financial disputes between the KRG and Baghdad. Officials announced on Tuesday that they had reached an agreement to resolve these issues.

On Monday, KRG Finance and Economy Minister Awat Sheikh Janab held a press conference in Baghdad, declaring, “We can say that the salary issue for 2025 is resolved. The distribution program for January salaries will begin on Tuesday, and we hope this marks the last time salaries are delayed. Employees have faced uncertainty for nearly 12 years, and we are pleased to say these issues have come to an end.”

While Baghdad’s transfer addresses January wages, the fate of December 2024 salaries remains unclear. Similar lags in late 2023 affected October, November, and December payments, raising concerns that the December backlog could also go unpaid.

The KRG Ministry of Finance and Economy said on Monday that, following 15 days of talks, technical teams from both sides finalized eligibility lists for employees, retirees, security forces, and social welfare beneficiaries. The ministry’s statement thanked Iraqi Prime Minister Mohammed Shia al-Sudani, Deputy Prime Minister Fouad Hussein, and Finance Minister Taif Sami for helping to conclude the February 3 agreement.

Officials pledged to prevent further disruptions, stressing that the KRG “seeks to ensure that Kurdistan’s employees receive their salaries on time, just like employees in other Iraqi regions.”

Years of delayed payments have led to protests and strikes across Sulaymaniyah and Halabja. Outside the UN compound in Sulaymaniyah, teachers have been on hunger strike for seven days, calling for punctual salary disbursements, a shift of civil service salaries to state-owned federal banks, and the restoration of suspended promotions.

On Sunday, the Iraqi Parliament passed amendments to the federal budget law for 2023, 2024, and 2025, potentially clearing the path for restarting oil exports from the Kurdistan Region and addressing salary shortfalls. According to lawmaker Narmin Maarouf, “The Kurdistan Region’s oil exports through the Ceyhan port are set to resume, but sales will be conducted through [Iraq’s] State Oil Marketing Organization.”