By Shavin Muhammed Ali
Introduction
The salary crisis of Kurdistan Region employees represents one of the most severe recurring financial-political crises in Iraq since 2003. It has exposed the structural tension in the relationship between the Kurdistan Regional Government (KRG) and the federal government in Baghdad, as well as the fragility of mechanisms for sharing resources and authorities. Instances of salary cuts or delays have repeatedly occurred without legal justification and have been used as a political pressure tool, which the KRG has considered a clear injustice against its citizens.
Legal and Constitutional Framework
Article 121 of the Iraqi Constitution stipulates that “the regional governments have the right to exercise executive, judicial, and legislative powers in all matters not exclusively assigned to the federal government.” Article 112 also stipulates a fair distribution of oil revenues, ensuring a just share for regions and governorates.
In several decisions—most notably the Federal Supreme Court’s ruling in February 2023—it was affirmed that the region’s salaries must be paid without political conditions and that employees should be considered Iraqi citizens who must not be discriminated against.
Nevertheless, the federal government has frequently used the salary issue as leverage against the KRG, leading to negative consequences for overall stability.
Salary Delays and Their Social Implications
From 2014 to 2024, the Kurdistan Region suffered from salary delays lasting up to five months at times, with the number of annual salary payments reduced to only nine or ten. In 2024 alone, the salaries for December, January, and April were delayed, leading to widespread protests and public discontent in most of the region’s governorates, and the cancellation of official celebrations such as Eid al-Adha in some areas.
The negative impacts included:
– Reduced purchasing power for citizens
– Increased unemployment due to the suspension of hiring
– Erosion of employee trust in the central government
– Loss of skilled professionals from the public sector
The Position of the Kurdistan Regional Government
1. Legal and Financial Commitment
The KRG, through Prime Minister Masrour Barzani, has declared full commitment to:
– Delivering non-oil revenues to Baghdad (approximately 400 billion dinars monthly in 2024)
– Providing Baghdad with electronic lists of employee names as part of the “MyAccount” project.
– Committing to deliver oil to the State Oil Marketing Organization (SOMO) as agreed upon following the Federal Supreme Court’s decision
2. Transparent Initiatives and Salary Digitization
In 2024, the region launched the “MyAccount” project to digitize salaries, registering over 750,000 employees on the platform, thereby enhancing integrity and transparency and preventing manipulation or duplication.
3. Covering Deficits with Internal Resources
Despite limited capabilities, the KRG paid at least 960 billion dinars from its internal revenues during the year.
Baghdad’s Funding Policy – Collective Punishment
Baghdad’s repeated decisions to cut salaries are perceived as:
– Collective punishment against more than one million employees in the Kurdistan Region.
– Political discrimination stemming from the positions of parliamentary blocs opposed to the region’s autonomy.
– A violation of the constitution and Federal Supreme Court rulings.
Many observers, including Iraqi parliamentarians, have argued that the federal government is politicizing a humanitarian issue and threatening stability.
Financial Agreements and Prospects for Resolution
In May 2025, the federal government announced the full transfer of May salaries after receiving the payroll lists from the region. A final agreement was also announced between the Ministries of Finance in Baghdad and Erbil, which includes:
– Monthly salary payments without delay.
– Adoption of digitization and data verification.
– Transfer of fixed amounts sufficient to cover all salary needs (approximately 895 billion dinars per month).
While this step was widely praised, past experiences have made trust fragile, especially given the continued negative rhetoric from some parliamentary blocs.
Recommendations for Resolving the Crisis
Legal: Enforce Federal Supreme Court decisions regarding the region’s salaries.
Financial: Transfer the region’s full share without conditions.
Political: Completely separate political disputes from human rights issues.
Institutional: Support the region’s digital transparency initiatives (such as “MyAccount”).
Media: Raise Iraqi public awareness about the fairness of the salary issue.
Conclusion
The salary crisis for Kurdistan Region employees epitomizes a constitutional and political struggle over the distribution of wealth and power. The regional government has demonstrated clear professional and legal commitment, while Baghdad has repeatedly used the salary file as a political bargaining chip.
The solution does not lie in “starving” citizens, but in achieving a fair and transparent partnership within the framework of the Iraqi constitution and ensuring equal respect for citizens’ rights, without regional or political discrimination.