Iraq’s Federal Supreme Court is set to hear two critical lawsuits on Monday concerning the delayed payment of salaries for public employees in the Kurdistan Region, amid ongoing financial and political tensions between Baghdad and Erbil.

Soran Omar, a member of the Iraqi parliament from the Kurdistan Justice Group (Komal), confirmed on Thursday that the court will review two cases aimed at ensuring salary payments are no longer tied to disputes between the federal government and the Kurdistan Regional Government (KRG).

The first lawsuit demands that salary disbursements be treated as an independent issue, separate from political disagreements and operational expenditures. It names Iraqi Prime Minister Mohammed Shia’ al-Sudani and Finance Minister Taif Sami as defendants.

The second lawsuit calls for executive orders to enforce the timely payment of salaries for public employees in the Kurdistan Region. Omar noted that the court could issue rulings on both cases during Monday’s session.

The dispute escalated in late May when Iraq’s Finance Ministry suspended all budget transfers to the KRG, including salaries for more than 1.2 million public employees. Baghdad accused the KRG of exceeding its 12.67% share of the 2025 federal budget and failing to deliver its agreed-upon oil shipments.

In early June, the Federal Supreme Court acknowledged receiving multiple complaints from Kurdistan Region employees seeking court intervention to secure their salaries. Previous rulings had mandated that both the federal government and the KRG ensure regular salary payments, regardless of political disagreements. However, hearings were delayed due to internal turmoil within the court.

The Federal Supreme Court recently underwent leadership changes after former Chief Justice Jassim al-Umairi retired, officially citing health reasons. His departure followed the resignation of six permanent and three reserve judges in mid-June, reportedly in protest against his leadership.

Last week, Judge Munther Hussein was sworn in as the new head of the court, prompting the resigned judges to withdraw their resignations. The restructuring has renewed hopes that the court will now prioritize resolving the salary crisis.

On Wednesday, the court confirmed it would hear a case demanding that the Finance Ministry ensure "monthly and uninterrupted" salary payments to Kurdistan Region employees, in line with federal budget laws. The lawsuit also seeks an immediate resumption of payments starting this month.

A separate case calls for a legal separation between salary obligations and broader fiscal disputes. Both lawsuits will have their first hearings on Monday, July 14.

A ruling in favor of the plaintiffs could compel Baghdad to release funds for KRG salaries, easing financial strain on public sector workers. However, the broader budget and oil disputes between Erbil and Baghdad remain unresolved.