Iraqi parliamentary leadership urges government to resume KRG salary payments, warns of Eid crisis

BAGHDAD — The Iraqi parliament’s leadership on Wednesday called on the federal government to reverse its decision to halt salary payments for public employees in the Kurdistan Region, warning that the move could cause economic hardship as Eid Al-Adha approaches.

Eid Al-Adha, a major religious holiday marked by increased spending on food, clothing, and animal sacrifices, often places added financial pressure on households — making salary delays especially burdensome for the region, which has a large public sector.

In a statement, the presidency of parliament said it “expresses its deep regret” over the decision by the Ministry of Finance, describing it as harmful to citizens and a step that would “cause an economic crisis.”

The appeal comes amid escalating tensions between Erbil and Baghdad after the federal finance ministry ordered a suspension of salary transfers to the Kurdistan Regional Government last week.

The parliamentary statement said the decision violated the Iraqi constitution and rulings from the Federal Supreme Court, both of which “guarantee the rights of all citizens in all governorates.”

The leadership urged the federal government to reconsider the move, particularly in light of the upcoming holiday. “We are on the verge of Eid Al-Adha,” it said. “The livelihood and entitlements of the people should not be linked to political issues and technical matters.”

The presidency called for renewed dialogue between Baghdad and Erbil, describing it as “the optimal path for resolving the issues and addressing the files” between the two governments.

Earlier Wednesday, the KRG cabinet condemned the salary suspension, calling the measure “unconstitutional and illegal” and describing it as “a collective punishment of the Kurdistan Region residents.”

In May, Iraq’s Finance Ministry said it would suspend transfers beginning that month, citing the KRG’s failure to submit verified records of oil and non-oil revenues. The ministry also claimed 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 strongly deny.

Public sector employees in the Kurdistan Region have endured years of irregular salary payments amid persistent disputes over budget allocations and oil revenue sharing between the federal and regional governments.