Baghdad ordered by Iraqi Supreme Court to cover public sector salaries in Kurdistan

The top court in Iraq has issued a directive instructing the federal government to assume responsibility for paying public sector salaries in the autonomous Kurdistan region.

This decision comes amidst mounting grievances from civil servants who have endured months without pay, prompting legal action and protests against both regional and national authorities.

Broadcasted on state television, the Supreme Court’s ruling mandates that the central administration directly allocate funds to government workers, employees of public institutions, social benefit recipients, and pensioners in Kurdistan. Court chief Jassem al-Omeiri emphasized the necessity for public entities to coordinate directly with the federal finance ministry to implement this significant change.

Originating from Sulaimaniyah, the second-largest city in the autonomous region, the case was brought forth by civil servants, including hundreds of teachers who have recently mobilized to demand compensation for unpaid salaries dating back to last year. Despite a prior agreement in September from Baghdad to increase funds allocated to Iraqi Kurdistan, disruptions in oil exports stemming from disputes between the federal government and Turkey have severely impacted the region’s financial stability.

Previously, Kurdistan enjoyed independent funding derived from oil exports, partially covering its salary obligations. However, complications arising from disputes with Turkey, the conduit for oil exports, have led to a cessation of this vital revenue stream since late March. Subsequently, negotiations between Iraqi Kurdistan and Baghdad resulted in an agreement stipulating that Kurdish oil sales would be channeled through the federal government, with the region receiving a designated portion of Iraq’s public spending.

In addition to assuming responsibility for public sector salaries, the Supreme Court’s ruling also mandates the Kurdish administration to relinquish control over all oil and non-oil revenues to the federal government, alongside undergoing a comprehensive audit of relevant financial accounts. As Kurdistan grapples with the absence of oil revenues, the region’s primary income stream now relies heavily on taxes collected at border crossings with neighboring countries, particularly Iran and Turkey, significant trade partners of Iraq.