The new Iraq salary deal between Erbil and Baghdad has entered its first phase. The Kurdistan Regional Government (KRG) plans to start paying public sector workers this Sunday. These payments mark the beginning of a fresh revenue-sharing agreement aimed at easing financial tensions.
According to a source from the KRG Ministry of Finance, the region will send 120 billion IQD in local revenue to Baghdad. The funds will move through the Central Bank’s Erbil branch. In return, Baghdad promises to release 960 billion IQD for May salaries on Monday. Workers across the Kurdistan Region will begin receiving wages from Tuesday through Thursday.
The same process will repeat next week. Another 120 billion IQD will go to Baghdad on Sunday. Later that week, the federal government will send another 960 billion IQD to cover June salaries. This step-by-step method hopes to build trust and improve salary flow in the coming months.
The Iraq salary deal comes after top-level talks in Baghdad. Prime Minister Mohammed Shia al-Sudani and President Abdul Latif Rashid met last week to end the ongoing financial dispute. Both leaders agreed to move forward with joint plans that secure salary payments and stabilize government relations.
In addition, the KRG Council of Ministers fully approved the framework before its rollout. Officials said this shows the region’s commitment to cooperation with Baghdad. They also confirmed the process will help solve salary delays and boost public trust.
Although July salaries are not finalized yet, early signs suggest a partial payout in August. The KRG said it will continue discussions with Baghdad to finalize details on oil exports, revenue flow, and payment dates. Both sides view this as a critical step toward a long-term solution.
Kurdish employees across health, education, and security sectors have waited months for wages. Many hope the Iraq salary deal brings relief and stability. Previous tensions between the regional and federal governments often disrupted these payments. However, this new approach might offer a path to consistent support.
In conclusion, the Iraq salary deal shows real progress. It reflects a shared goal between Erbil and Baghdad to fix salary issues, build economic trust, and protect public services.