Peregraf
Iraqi President Abdul Latif Rashid and the President of Iraq’s Federal Supreme Court, Justice Jassim Mohammed Aboud, held a high-level meeting in Baghdad to address the growing crisis over public sector salaries in the Kurdistan Region.
According to a statement from the Presidency, the two officials discussed continued coordination and cooperation between the federal authorities to ensure the rule of law and judicial independence—both seen as vital in resolving pressing national issues. At the center of the talks was the unresolved payment of financial entitlements to employees of the Kurdistan Regional Government (KRG), a crisis that has persisted into mid-June.
President Rashid emphasized the need for a constitutional and legal resolution, calling the salary issue a humanitarian priority. "We must find a final and lawful solution to ensure the rights of KRG employees are protected and respected," he said.
Justice Aboud, echoing these sentiments, stressed that the Federal Court remains committed to its constitutional duties and to reinforcing national unity. "The salary crisis must be resolved in accordance with the law," he affirmed.
This meeting comes at a critical juncture: 15 days into June, salaries for May remain unpaid in the Kurdistan Region. The Iraqi Finance Ministry has already informed the KRG that the Region's full 12.67% share of the federal budget—allocated for 2025—has been exhausted, citing both oil and non-oil revenue reports audited by the Financial Supervision Bureau.
In a formal letter dated May 28, Finance Minister Taif Sami detailed the Region’s revenue records from 2023 to 2025 and referenced the KRG’s ongoing failure to implement the Iraqi Tawteen process, which mandates salary payments through federal banking channels. The lack of compliance with this directive was a key reason behind the federal government’s suspension of salary transfers.
Only four months of salaries have been paid so far in 2025, leaving public employees in limbo. A source within the KRG’s Ministry of Finance told Peregraf on May 27 that May salaries are unlikely to be distributed before Eid al-Adha. The Ministry reportedly classified the wages as a "liability," effectively delaying payment until mid-July or later.
The ongoing salary crisis has deepened economic hardship for thousands of civil servants and their families across the Kurdistan Region, raising tensions between Erbil and Baghdad at a time of increasing regional uncertainty.