Kurdistan finance ministry denies new payroll decision from Baghdad

ERBIL — The Kurdistan Regional Government’s Ministry of Finance and Economy said it has not received any decision or guidance from Baghdad regarding salary disbursement for 2026, rejecting what it described as inaccurate media interpretations.

In a statement, the ministry said that reports circulating in parts of the media about changes to salary payments are “incorrect interpretations,” adding that “so far, no decision or guidance has reached the Kurdistan Region’s Ministry of Finance from the federal Ministry of Finance regarding salary spending mechanisms for the 2026 fiscal year.”

The ministry said that “so far, there is no new agreement or decision concerning salary distribution,” stressing that the current process remains in place.

It added that, as in previous years, the ministry is continuing “to implement all steps related to salary distribution,” and said there are “no obstacles” to submitting the trial balance report and payroll lists while awaiting “the outcome of Point One,” referring to any new federal decision or guidance on salary spending for 2026.

The ministry called on individuals and media outlets “that are not familiar with these agreements, instructions and procedures” not to publish misleading information about payroll lists or the issue of “120 billion dinars,” warning against what it described as attempts to exploit the concerns of employees and pensioners “for personal or political gain.”

The statement said the ministry’s doors remain open to “any individual or entity that needs accurate information” regarding salaries and financial procedures.

Ongoing disputes over public sector salary payments between the federal government and the Kurdistan Regional Government have repeatedly flared in recent years. In late December 2025, Baghdad transferred funds to the Kurdistan Region for October public sector salaries after renewed revenue-sharing arrangements were implemented, with the KRG also remitting 120 billion Iraqi dinars (about $81.6 million) in non-oil revenue to federal accounts. Earlier, in October 2025, the federal government transferred nearly 946 billion Iraqi dinars (about $643.5 million) to cover August salaries following an agreement that required Kurdish crude deliveries and non-oil revenue transfers. These payments followed a pattern of salary delays linked to disputes over oil exports, budget allocations and revenue compliance.