KRG meets on urgent salary crisis

Shafaq News/ The Kurdistan Regional Government (KRG) Council of Ministers will meet on Wednesday to address several key issues, with salary payments for public employees expected to top the agenda.

Sources familiar with the matter shared with Shafaq News that the meeting may result in the adoption of a new salary disbursement mechanism or the introduction of alternative arrangements intended to ease the current challenges.

Tensions surrounding salary delays intensified after Iraq’s Finance Ministry halted May 2025 salary transfers to the Kurdistan Region. The ministry attributed the suspension to the KRG’s alleged failure to transfer oil and non-oil revenues as stipulated in the federal budget law.

In response, the KRG accused Baghdad of failing to meet its financial commitments, describing the move as politically driven. The suspension affects more than 1.2 million public employees across the Region.

Last week, Iraqi Prime Minister Mohammed Shia al-Sudani authorized the release of May salaries for Kurdistan Region employees, with disbursement framed as a temporary federal loan.