Kurdistan Regional Government Council of Ministers, headquartered in Erbil.
'Collective punishment'
KRG slams federal salary halt as ‘unconstitutional,’ vows to seek international support
ERBIL — The Kurdistan Regional Government’s Council of Ministers on Wednesday condemned the Iraqi Ministry of Finance’s decision to suspend salary payments to public sector employees in the region, calling the move “unconstitutional and illegal” and describing it as “a collective punishment of the Kurdistan Region residents.”
The cabinet met in Erbil, led by Prime Minister Masrour Barzani and Deputy Prime Minister Qubad Talabani. In an official statement, it said the region had “met all its obligations” and had “transparently submitted all financial data” to joint audit teams involving both federal and regional authorities.
Tensions between Erbil and Baghdad escalated last week after Iraq’s Finance Ministry ordered a halt to salary transfers for KRG public sector employees, prompting sharp criticism from Kurdish leaders across the political spectrum.
The cabinet stressed that “no excuse or justification should be used to block the salaries of Kurdistan Region employees for the coming eight months,” especially in the days leading up to Eid al-Adha, which begins Friday. It described the finance ministry’s move as “a political decision that imposes sanction on the region.”
The cabinet urged the federal cabinet to review the decision in light of recent Federal Supreme Court rulings and said public sector workers in the Kurdistan Region should not be “deprived of their entitlements.”
It also announced plans to send a formal letter to the international community and foreign diplomatic missions, outlining the constitutional, legal, and financial dimensions of the dispute. The letter will seek international support for resolving the issue “within the constitutional framework.”
Iraq’s Finance Ministry said in May that it would suspend salary transfers to the KRG, accusing the regional government of failing to provide verified data on oil and non-oil revenues. It also claimed that the KRG had exceeded its allocated share of the 2025 federal budget by more than 19 trillion dinars as of April — an allegation KRG officials deny.
Public sector employees in the Kurdistan Region have faced years of salary delays and reductions due to long-standing disputes between Erbil and Baghdad over budget allocations and control of oil revenues.
