After ten years of salary deferrals and deductions, estimates show that each employee in the Kurdistan Region has lost between 40 to 50 million dinars due to decisions made by the co-operated KDP-PUK government to delay and cut salaries.
Like previous years, the fate of two months’ salaries for Kurdistan Regional Government employees has become uncertain this year. The Iraqi government only paid October’s salary, leaving November and December salaries in an unclear and ambiguous situation.
In its final meeting of the year, the Iraqi government decided to continue the agreement between Erbil and Baghdad as it is, which means Kurdistan’s oil will continue to be sold through SOMO, with the KRG transferring 120 billion dinars monthly to Baghdad. In return, Baghdad would send employee salaries. However, there are no signs of the final two months’ salaries arriving.
Delayed Salaries from Previous KRG Cabinets:
2015: Four months’ salaries were lost
2016: All twelve salaries were delayed, with employees receiving only 75% of their payments
2017: 11 salaries were delayed, and one month was not paid at all
2018: 11 months’ salaries were delayed
2019: Employees received all 12 salaries (Baghdad sent 400 billion dinars monthly that year)
2020: A disastrous year where only one full salary was paid, four were delayed, and seven months were never paid, despite oil revenues and additional Baghdad transfers
2021: Employees received only six salaries, with six months delayed
2022: Employees received their salaries but with delays; no salary was paid on time
2023: Three months’ salaries were lost
2024: December salary still unpaid
2025: Two salaries remain unpaid so far, while Baghdad sends full monthly allocations
In total over these 10 years, employees have not received 18 full months’ salaries, and 44 months were paid with delays and deductions.
Now there are two scenarios in front of the Erbil-Baghdad agreement: either renew the current agreement (which the Iraqi government wants to extend), or negotiate a new long-term agreement. Under the first scenario, the agreement continues until a new government is formed. The new government would then either continue the same arrangement (oil and 120 billion dinars from non-oil revenues in exchange for salaries for one year), or—according to statements by Iraq’s new Prime Minister and the KRG’s new Prime Minister—make changes and reach a different agreement.
However, for Iraq’s incoming government, the Erbil-Baghdad agreement regarding KRG employee salaries won’t be straightforward. If Baghdad’s government is weak and cannot control parliament, or if the factions forming the government intervene, they could disrupt any agreement—as happened in 2021 when parliament overturned the Erbil-Baghdad agreement.
The Kurdistan Regional Government has remained passive regarding the loss of two months’ salaries and places blame on the Iraqi government, when it should take responsibility and apply serious pressure to ensure full payment of all salaries to Kurdistan Region employees.
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