Iraqi Ministry of Finance Begins Disbursing May 2025 Salaries for Kurdistan Region Employees

Peregraf

The Iraqi Ministry of Finance announced on Tuesday the start of salary disbursements for public sector employees in the Kurdistan Region for May 2025, following recent commitments made by the Kurdistan Regional Government (KRG) under a federal agreement.

This development comes in line with Cabinet Resolution No. (550), issued during an emergency session of the Council of Ministers on July 17, which obligates the KRG to transfer the current daily oil production from its fields to the federal Oil Marketing Company (SOMO) and continue these transfers until full compliance with both the resolution and the Federal Budget Law is achieved.

In a show of initial compliance, the KRG has already submitted a portion of its non-oil revenues—amounting to 120 billion Iraqi dinars—to the federal government. The Ministry of Finance confirmed that relevant authorities are actively implementing the resolution’s other provisions.

The federal ministry reiterated its commitment to fulfilling its constitutional and legal duties towards the Kurdistan Region, provided that the KRG continues to adhere to the terms outlined in the Federal Budget Law, the rulings of the Federal Supreme Court, and decisions issued by the Council of Ministers.

Also on Tuesday, the KRG Ministry of Finance confirmed the transfer of the 120 billion dinars in non-oil revenue for May 2025 to Baghdad, in line with the new financial and oil-sharing agreement.

Under the terms of the agreement, the KRG is expected to deliver 230,000 barrels of oil per day and transfer monthly internal revenues to the federal treasury in exchange for the release of salaries. However, despite meeting its non-oil revenue obligations, employees across the Kurdistan Region have yet to receive salaries for both May and June—exacerbating public dissatisfaction amid an ongoing financial crisis.

The salary release by Baghdad marks a step toward resolving the protracted budgetary and oil revenue disputes between Erbil and the federal government. Still, observers warn that full resolution depends on sustained cooperation and mutual adherence to the agreed terms.