Unpaid Wages and Unkept Promises: Why Kurdistan’s Salaries Must Be Repaid

For over a decade, public servants in the Kurdistan Region of Iraq (KRI) have borne the brunt of political dysfunction, economic mismanagement, and elite self-preservation. Teachers, doctors, engineers, and administrators who once seemed to hold the promise of building a stable future for Kurdistan are now drowning in debt, working without fair compensation, and living under increasingly dire conditions.

This is not a matter of budgetary delay. It is a systemic betrayal of constitutional, economic, and human rights.

What began in 2014—after the Kurdistan Regional Government (KRG) declared economic autonomy and Baghdad cut its 1.3 trillion IQD monthly transfers—has turned into a prolonged humanitarian and economic crisis. For more than a decade, public sector workers in the KRI have endured irregular and delayed salaries, with many owed staggering amounts—on average over $50,000 each, while higher-level employees are owed over $120,000.

This is not a matter of budgetary delay. It is a systemic betrayal of constitutional, economic, and human rights.

Legal and Constitutional Failure

Iraq is both morally and legally obligated to pay its public servants on time. Under Article 23 of the Universal Declaration of Human Rights and Article 7 of the International Covenant on Economic, Social, and Cultural Rights, to which Iraq is a signatory, the right to fair and timely remuneration is a binding human right. Domestically, Article 30 of the Iraqi Constitution guarantees citizens economic and social welfare, including income that ensures a life of dignity.

These obligations have been ignored. As of July 2025, over 10 trillion Iraqi dinars (approximately $7 billion USD) in public sector wages remain unpaid in the Kurdistan Region.

The breakdown is staggering: out of 121 months, only 58 full salaries have been paid. Eighteen months were unpaid. In 34 months, only 25% of wages were disbursed. Nine months saw 21% pay cuts, and another month saw an 18% cut. Promotions have been frozen to avoid wage increases.

Debt and Desperation

This salary backlog is a life-altering burden for 1.2 million Kurdish citizens. Without government loans or relief, civil servants have borrowed from friends, family, and banks just to cover rent, tuition, and medical bills. Many have defaulted. Divorce rates have reportedly surged due to growing financial hardship. Even if salaries resume tomorrow, the backlog must be paid—with a structured repayment plan that accounts for everyone’s arrears. Anything less leaves workers trapped in debt created by their own government’s failure.

Deterioration of Basic Services

This inconsistency is not due to a lack of resources. It is the result of years of infrastructure neglect and political priorities that prioritize elite comfort over public welfare.

Adding to the hardship is the collapse of basic public services. Many Kurdish households receive water only a few days a week. Electricity, provided by the state, is limited to a few set hours per day for the majority of the region, forcing families and businesses to rely on expensive private generators. This inconsistency is not due to a lack of resources. It is the result of years of infrastructure neglect and political priorities that prioritize elite comfort over public welfare.

While families ration water and businesses struggle with blackouts, Kurdistan’s ruling elite enjoy uninterrupted luxury, with private systems shielding them from the consequences of their misrule. The resentment this has generated is not just political—it is existential.

Who Really Controls the Economy?

While the public continues to struggle, Kurdistan’s wealth is increasingly concentrated in the hands of two families: the Barzanis and the Talabanis. These ruling families control nearly every major industry—oil, border crossings, telecommunications, fuel, energy, and logistics—and have amassed immense wealth abroad through opaque networks of businesses, real estate, and foreign bank accounts.

Their grip on the economy is reinforced by a jobs-for-votes system that uses the public sector as a political tool. Over 1.2 million civil servants, dependent on government paychecks, are subtly coerced to support ruling parties to retain their livelihoods. The private sector remains stifled, intentionally underdeveloped to preserve economic dependence and political dominance.

Failed Governance and Political Calculus

Recently, Baghdad agreed to resume salary payments—but only under conditions: handover of the KRI’s oil file, border and internal revenues, and introduction of a banking-based salary pay system to improve transparency. These are reasonable steps. Yet KRG leaders oppose them, fearing a loss of control over the region’s lucrative revenue streams.

Meanwhile, both sides blame each other as ordinary people continue to suffer. Despite the KRI’s oil wealth and trade income, the region cannot maintain consistent payments or basic services. This is not just a financial issue—it is a failure of governance and political will.

A Potential Solution: Independent Oversight

There is a viable path forward. In post-conflict and fragile states like Liberia, Kosovo, and Bosnia, third-party financial oversight—often administered by the IMF, World Bank, or UNDP—has enabled fair, depoliticized revenue management. In Kosovo, internationally overseen budgeting restored fiscal stability. In Sierra Leone and South Sudan, escrow systems helped rebuild public trust.

Iraq and the KRI could adopt a similar model: an independent auditor to monitor oil and customs revenues, with salary disbursements tied to verified metrics. An escrow mechanism could ensure that public servants are paid regardless of internal disputes.

Conclusion: Dignity Demands Action

It is the result of deliberate policy decisions and elite self-interest

The economic crisis in Kurdistan is not caused by sanctions, war, or natural disaster. It is the result of deliberate policy decisions and elite self-interest. People in the Kurdistan Region have worked with dignity. They have endured hardship. They have kept hospitals, schools, and ministries running under impossible conditions. Ignoring these arrears is a clear violation of constitutional and international obligations that Iraq has committed to—not to mention a contributing factor to the global refugee crisis

This backlog represents years of hardship for Kurdish citizens: delayed healthcare, mounting debts, missed rent payments, and financial insecurity have been forcing many to flee the country. As the recent ITV documentary The Crossing demonstrated, due to economic despair, many Kurds have been risking their lives on dangerous migration routes in search of stability and opportunity.

Given such human impact, the 23 trillion dinars ($15.7 billion) in unpaid salaries must not be treated as forgotten debts—they must be repaid. Both Baghdad and the KRG are legally responsible for ensuring that public sector workers receive the money they are owed. Without a structured repayment plan, however, the crisis will remain unresolved even if salaries continue to be paid in drabs moving forward.

Thus, it is time to pay the KRI’s civil servants what they are owed. This is not a matter of generosity. It is a matter of justice and of survival for a region on the brink of losing its most valuable asset: the trust of its people.