Salary payments for public employees in the Kurdistan Region are expected to begin in the middle of this week. The payments will coincide with the federal government’s monthly salary distribution across Iraq.
According to officials, Erbil and Baghdad have agreed to synchronize salary payments each month. As part of the arrangement, salaries for Kurdistan Region employees will be released alongside those of federal employees.
To complete the process, the Kurdistan Regional Government (KRG) has already sent its payroll lists and audit reports to Iraq’s Ministry of Finance. However, Baghdad is still waiting for reports on the Kurdistan Region’s non-oil revenues and oil export revenues before finalizing the transfer.
A source at the Kurdistan Region’s Ministry of Finance and Economy said salary payments are expected to begin on Tuesday. The source added that Baghdad may again apply the “offset” system used last month.
Under this system, the federal government deducts Kurdistan’s share of non-oil revenues before transferring the remaining salary funds. As a result, the payment mechanism directly affects the amount of funding sent to the region.
Meanwhile, a KRG delegation is holding talks in Baghdad to reduce the planned deduction of 120 billion Iraqi dinars. The delegation has presented a detailed financial report showing that the Kurdistan Region’s non-oil revenues have declined.
Based on those figures, regional officials are asking the federal government to lower the deduction and provide additional financial support.
If Baghdad continues using the offset mechanism, the decision could affect the salaries of around 87,000 teachers and contract employees. Their salaries rely heavily on the Kurdistan Region’s domestic revenues.
Consequently, the KRG may have to use most of its local income to cover the funding gap. Officials hope ongoing negotiations will produce a solution that ensures timely salary payments while reducing pressure on the regional budget.
