The Kurdistan Region’s Ministry of Finance and Economy announced that it has submitted the July payroll list and June's trial balance report to Baghdad. 

The ministry stated that its technical team officially submitted the public sector employees' payroll alongside the June trial balance report to the Accounting Department of the Federal Ministry of Finance on Wednesday. 

KRG Reinstates 981 Over-60 Contract Workers 

According to the ministry, acting on specific ministerial directives, the names of 981 contract employees over the age of 60 have been successfully reinstated into the active payroll list. 

This administrative decision officially authorizes these individuals to continue their civil service through the end of the year.

The salary disputes and subsequent payment delays remain a prominent issue between the Kurdistan Regional Government and the Iraqi Federal Government. 

Erbil-Baghdad Agreement on Non-Oil Revenues and Salaries 

Under current federal frameworks, the KRG is obligated to transfer 120 billion Iraqi Dinars per month in non-oil revenues, such as customs, border tariffs, and local taxes, to the federal treasury in Baghdad. 

However, the KRG struggled to fulfill this non-oil revenue quota in recent months because its monthly intake plummeted significantly. 

Channel8 reported earlier that the Kurdistan Region’s average monthly non-oil revenue experienced a historic 70% contraction, plummeting from a 350 billion dinar baseline down to just 126 billion dinars during the first five months of 2026. 

Despite these structural challenges, the new Iraqi government under Prime Minister Ali Faleh al-Zaidi and Finance Minister Faleh al-Sari has committed to funding and sending salaries regularly, on equal terms with the rest of Iraq, and without discrimination.