Supreme Court mandates direct payment of salaries to KRG employees

The Federal Supreme Court issued a landmark ruling today, mandating the federal government to directly pay employees of the Kurdistan Regional Government. This verdict settles the debate regarding Baghdad's obligation to cover KRG salaries, but it also undercuts Erbil’s political authority and constrains the scope of federalism.

The Supreme Court's decision follows a lawsuit filed by Kurdish lawyers against PM Sudani and KRG PM Masrour Barzani last year, citing delays in salary payments for Kurdistan Region employees.

It stipulates that direct salary payments must be implemented for all public sector employees in the Kurdistan Region, including pensioners and those on the social security network. Comparable to federal Iraq, where employees receive their monthly salaries via bank transfer following approval by the Ministry of Finance, the ruling requires identical treatment for KRG employees.

In January, Baghdad sanctioned the transfer of 618 billion IQD to the KRG to cover salary payments. Despite providing loans to Erbil last year, employees went unpaid between October and December 2023.