This policy applies to all State employees and employees of State Corporations and other self-financed entities. In addition the policy objective is to pay full time and long term contracted employees of Ministries, State Corporations and other self-financed entities, at the discretion of the CPA Senior Adviser. See below for more details.

All allowances, bonuses, supplements and any other additions to salaries remain suspended.

Salaries for the months of May and June will be paid at the same time.

Salaries will be paid in US dollars according to the following schedule for each month:

Note: as a guide, across all workforces and across the country as a whole, we expect the average distribution by salary grade to be approximately 60% Grade 4; 30% Grade 3; 9% Grade 2; 1% Grade 1.

Employees who have not received their full salary entitlement for April or their full $50 emergency payment shall be entitled to payment of the balance. Any double payment of April salaries or emergency payments, or any previous payment of May and June salary payments shall be deducted from May and June salary payments. For the purposes of calculating deductions and backpayments due an exchange rate of 2000 ID:1 USD shall be used.

All salary payments will be managed by Ministry of Finance officials and executed through the Rafidain and Rasheed banking systems.

The Director General of Accounts, Ministry of Finance will issue a circular to all Ministries and Departments setting out the procedure for the payment of May and June salaries. Ministries will be responsible for providing the information required for salaries to be paid to the employees of State Corporations and other self-financed entities for which they are responsible, before authorisation for payment can be issued.

All Ministries are required, as a condition for further disbursements, to provide information on actual payments made in the previous month. This should include a receipt from the bank recording the redeposit - at the earliest opportunity - of unused funds at the Treasury account in the bank from which they were withdrawn.

Ministries and departments which submitted summary payroll data for the payment of April salaries which was approved by the relevant CPA Senior Adviser and the Director General of Administration and Finance will only need to report changes to the payroll to the Ministry of Finance. Where the April payroll of a workforce in a governate outside Baghdad was approved in accordance with the established process, the Baghdad Ministry of Finance will, unless the Senior Adviser decides otherwise, delegate payroll management to the local branch of the Treasury.

Where payroll data for ministries and departments has not been approved by the relevant CPA Senior Adviser and the Director General of Administration and Finance (as in some governates), this will be required before any further payments can be made. This information should include details of any unauthorized salary or emergency payment including who the money was paid to.

The Ministry of Finance shall issue authorisation to designated banks to provide specified funds to named representatives of Ministries and Departments to pay salaries. Presentation of this authorisation, which may be transmitted electronically, at the designated bank will release the specified funds to the named representatives for the purpose of paying salaries.

Internal audit sections in each ministry shall review the payroll and salary levels for consistency with those approved for payment by the Ministry of Finance as well as the integrity of individual payments. In each accounting unit a three-person committee shall oversee distribution of salaries. A post payment audit shall be performed by the Board of Supreme Audit wherever possible.

Contracted employees are paid out of operating expenses and not out of payroll, and therefore their payment for April, May and June is authorised under a different procedure:

• Collect a payroll of the relevant contracted employees, including a breakdown of the workforce by pay. The pay levels need not necessarily be the same as the four tier scale for permanent employees.
• The Iraqi Director General of Administration and Finance and the CPA Senior Adviser approve the list.
• Submit the approved list to the CPA Ministry of Finance, who will direct the Iraqi Ministry of Finance to issue an authorisation to release funds to cover payment of the costs of the contracted employees

Jacob Nell, Adviser, Ministry of Finance, nellj@orha.centcom.mil

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