Baghdad will release Kurdistan salaries following the latest revenue-sharing agreement, officials confirmed on Wednesday. The Kurdistan Regional Government (KRG) completed all preparations to distribute public sector salaries for July and August. This step comes after the KRG transferred 120 billion Iraqi dinars, roughly $91 million, to the federal government.
Earlier, the Iraqi cabinet had instructed the Finance Ministry to cover June wages. This approval was conditional on Erbil transferring its non-oil revenues. The arrangement allowed the federal government to ensure salary payments while the interim budget framework continues.
KRG Spokesperson Peshawa Hawrami explained that the funds reached the federal Finance Ministry’s account. The ministry will first disburse July salaries and then move on to August payments. Hawrami highlighted that an interim three-month oil revenue agreement remains active between Baghdad and Erbil. This temporary framework guarantees continued cooperation until the federal government finalizes a new annual budget.
On September 23, the Iraqi cabinet approved the July salary payments, reflecting the progress of ongoing fiscal coordination. Salaries for August and September will be released once further arrangements on revenue transfers are completed. This structured approach ensures transparency and financial stability for public sector employees in the Kurdistan Region.
Observers noted that releasing Kurdistan salaries strengthens trust between the regional and federal governments. Analysts predict smoother coordination for future salary payments, which is vital for public services and employee confidence. The agreement underscores Baghdad’s commitment to respecting financial obligations to the Kurdistan Region while maintaining national fiscal balance.
In addition, officials stated that monthly revenue transfers will continue until Iraq adopts a new federal budget. This step safeguards employee payments and demonstrates collaboration on both political and economic fronts. The release of Kurdistan salaries also signals that the federal and regional authorities are prioritizing citizens’ financial welfare.
The agreement comes amid ongoing negotiations on oil revenue distribution, which affects budget planning nationwide. By coordinating transfers and salary disbursements, both Baghdad and Erbil aim to avoid public sector delays. Experts say these moves may improve long-term economic stability and strengthen federal-regional relations.
With these payments, thousands of public sector workers in the Kurdistan Region will receive overdue wages. The federal government and KRG continue working closely to ensure timely salary releases for upcoming months, demonstrating a shared commitment to accountability and transparency.
