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The Iraqi Governing Council and the CPA Administrator have approved new salary scales to Iraqi civil servants and other Iraqi government employees.  These instructions will explain the new structure and provide implementing instructions for the transition from the current four grade structure.


            The new salary scale is the result of extensive study and interaction of a Salary Task Force composed of representatives of the Iraqi Ministries and government and out side pay experts brought in for the project. The Iraqi working group studied the issue for over a month and made valuable recommendations that form the basis for the plan.


            The plan takes into consideration all those who are currently receiving salary payments under the four grade program. Their salaries will remain at their current levels unless their experience, productivity and performance will cause them to be slotted at a higher grade. Those grand-fathered under this save pay formula will remain at their pay level until promotions and longevity increases catch up to them.  Thus all current Iraqi government employees will receive the same or greater pay under this system compared to the current system.


            The new system is based on pay for work. No one will receive special bonuses or stipends. The workers pay will be based entirely on the base salary in the scale and not/not on other supplementary pays. The workers will be expected to work a normal Iraqi work week of at least 35 hours in order to be paid. Shift workers, those working overtime, and other similar issues will be compensated within salary scale limits by management decisions.


            Transition to the new pay scale will take place over the next few months starting in most cases on 1 October 2003.  The Iraqi task force is working on bench-mark job positions to aid managers in their decision about where an individual is placed on the scale. As Ministries and commissions and State owned industries complete their slate of employee assignments, the Ministry of Finance and Ministry of Planning will work together to ensure worker distribution conforms to the affordability percentage per grade. If they do not, then the situation will be considered by the Iraqi Salary Working group to resolve the distribution either by reclassification of some workers or a nation-wide cross-leveling. Once these classifications are finalized then the new salary scale will enter into effect the next month for that particular organization. No one can be paid under the new scale and job classification until the end of October pay dates, as the salaries will be paid in the new Iraqi dinar. All wages will be paid in Iraqi Dinars. Those payments taking place after October 15 will be paid with the new Iraqi dinar on a one-for-one basis.



            Workers receiving their first month’s pay under the new salary system will be required to provide recognizable photo identification. In subsequent payments, a bank account number where workers would like future wages to be deposited will be required.

            Ministries will provide workers’ names, identification numbers to both the Ministry of Planning and the Ministry of Finance, and a new grade/step classification for each employee.  Once it is ascertained that the Ministry or Agency’s list and grade structure is completed and approved by the Ministry of Finance, the salary funds will be included in the Ministry or Agency’s operating budget for each remaining month in 2003 and will be the basis for a salary budget line in the 2004 budget.




A.  Wednesday 3 September – The Iraqi Salaries working group finalizes benchmark jobs.


B.  Thursday 4 September - A CPA Administrator order will be issued making the salary scale official. These instructions, the Administrator’s order, and the salary scale will be released to CPA Senior Advisors at the weekly CPA economic meeting. 


C.  Sunday 7 September – A press conference will take place at 1000 announcing the order and providing details on the new system. It will launch a broader strategic information plan that will disperse more information in coming weeks.   


D. Saturday 6 September – 1 October - Ministries, Agencies, and commissions should be instructed to start the classification of employees into the new scale. Upon completion, they will provide copies to the Ministry of Planning and the Iraqi Salary working group for examination. This will ensure proper adherence to national-wide grade dispersion and affordability. Once approved, a copy will be provided to the Ministry of Finance for a final financial review.


E. 1 October- 1 January. Upon approval of the above ministries and working group, the employees may be informed of their new salary. Employees can appeal their salary assignment in writing through their management as outlined in the Administrator’s order, but they will continue to be paid at their initial classification until their appeal is adjudicated.  Those employees who do not continue/come to work at the new scale will be free to leave the civil service. Military, Police, firefighters, security guards and essential medical personnel will only be allowed to leave their duties with permission of their respective ministers.  Employees of the CTF-7, such as security guards and municipal workers will be integrated into the new scale starting 1 October. Short term contract workers will continue to be paid according to their contracts by the contractor.


F. 1 October – 1 January. Salaries for approved Ministry/Commission salary classification plans will be implemented no later than the first day of the month following approval.  Employees will be paid their new salary on the last work day of the month. Employees paid under the four grade pay system will be paid at that rate or the new scale whichever is higher. Employees who are paid under the four grade scale will remain at that rate until promotion or longevity/productivity allow for movement to a higher step or grade.


G. 30 October- 30 January. The first few payments will be in cash. Subsequent payments will be by direct deposit to an Iraqi bank account of the employees choosing. A full month’s pay will be issued for a full month’s work. Overtime may be paid by individual ministries or handled through compensatory time off. Their anticipated additional costs should be reflected in their 2004 budget proposals as a separate line under salaries and compensation.


G. 1 October – indefinite. New hires after the date of the CPA implementing order will be paid at the new salary rate as of 1 October. USAID (and their contractors) and CTF-7 will use the new scales for new hiring after 1 October.  NGOs, independent contractors and international organizations will be encouraged to use the rates. Accordingly, some jobs will start at a lower rate than under the current four grade scale.


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