Order 30: Reform of Salaries and Employment

COALITION PROVISIONAL AUTHORITY ORDER NUMBER 30

REFORM OF SALARIES AND EMPLOYMENT CONDITIONS OF STATE EMPLOYEES

Pursuant to my authority as Administrator of the Coalition Provisional Authority (CPA), under the laws and usages of war, and consistent with relevant U.N. Security Council resolutions, including Resolution 1483 (2003),

Understanding that the salaries of public workers under the former regime were paid through a complicated system largely composed of incentive pay that rewarded loyalty to the former regime over meritorious service,

Realizing that service in state agencies and state owned enterprises is important public service that requires appropriate compensation for efforts of workers to encourage the best qualified to choose public service,

Noting that salary and conditions of employment reform is essential to guarantee fairness within the public system to ensure that state employees receive appropriate compensation for their efforts, but also to provide incentives for meritorious service or sanctions for failure to perform appropriately,

Recognizing the need to establish a transparent system of compensation for those employed in public service,

I hereby promulgate the following:

Section 1 Definitions

“Base Salary” means base compensation for public employment exclusive of any Special Pay.

“Geographic Allowances” means any special payment made to a Public Service Employee as a result of the location the employee performs duties.

“Grade” means the position level specified for any public service position set forth in the Salary Table attached as Annex A.

“Public Service Employees” means all national government employees serving in any capacity in any national governmental agency or instrumentality including ministries, whether at the national, governorate or municipal level, and state-owned enterprises.

CPA/ORD/8 September 2003/30

� “Public Service Employees” does not include municipal or local employees appointed by Coalition Forces.

“Risk Allowances” means any special payment made to a Public Service Employee as result of the hazardous nature of their employment.

“Special Pay” means any special payment or incentive payment including family allowances, staff bonuses, university service allowance, scientific status allowances, qualification allowances, position allowances, vocational allowances, transportation allowances, geographic allowances, risk allowances, or any other legal compensation other than Base salary paid in connection with public service.

“Salary Table” means the table of payments of monthly salaries paid to Public Service Employees set forth in Annex A to this Order which shall be effective from 1 October 2003 until 30 September 2004.

Section 2 Purpose and Objectives

1) Salary reform for Public Service Employees is necessary to encourage the best qualified to choose careers in public service. A system of pay based upon complicated incentives lacks transparency and unfairly results in widely disparate levels of pay for the same work. The public sector salary system is reformed to foster transparency in payments and to regularize payments to ensure that individuals are compensated at comparable levels for comparable work across all areas of public service.

2) Reform of conditions of employment reform for Public Service Employees is also necessary to encourage the best qualified to choose careers in public service. The conditions of public service employment are reformed to enable the best qualified employees to rapidly advance to positions of greater responsibility, but also to allow for the removal of Public Service Employees who regularly fail to achieve the minimum standards expected of their Grade and position.

Section 3 Salary Reform

1) Effective 1 October 2003, all existing laws, regulations, orders, or other enactments establishing salaries, Special Pay, or other monetary incentives for Public Service Employees are hereby suspended. The CPA Director of Management and Budget, in coordination with the interim Minister of Finance, may grant limited exceptions to this suspension until 31 December 2003 for public agencies unable to implement this Order by the prescribed dates.

CPA/ORD/8 September 2003/30

� 2) Effective 1 October 2003, all Public Service Employees shall be paid in accordance with the Salary Table except in cases where the CPA Director of Management and Budget has granted an exception to the implementation of this Order in accordance with Section 3(1) above or where the CPA Director of Management and Budget has authorized the public agency to implement the Salary Table prior to 1 October 2003.

3) As set forth in the Salary Table, the salary paid to an employee will be based upon the Grade of the employee as determined by the classification of the employee’s position and the employee’s employment Step as determined in part by the employee’s length of service and in part by performance.

4) The CPA Director of Management and Budget may authorize the payment of Risk Allowances for particularly hazardous duties or Geographic Allowances. The only basis for approval of Geographic Allowances is a demonstrated history of an inability to fill the position at the authorized salary. Following the implementation of the salary reform provisions contained herein, all such Risk Allowances and Geographic Allowances must be approved by the CPA Director of Management and Budget.

5) No Base Salary of Public Service Employees for the same position will be reduced by the implementation of the salary provision of this Order. In the event a Public Service Employee’s prior Base Salary for the same position is more than the amount specified in the Salary Table, the pre-existing salary of the Public Service Employee will continue to be paid. The Base Salary of such employees will not be increased until the Public Service Employee is entitled to increased compensation as defined by the Salary Table. This provision does not affect the removal of Special Pay or other incentives as detailed elsewhere in this Order.

Section 4 Implementation of Salary Reform

1) All Ministers, state owned enterprise Directors, or other heads of public agencies shall establish salary Grade classifications for existing positions within their agency in accordance with the guidelines issued by the Ministry of Finance.

2) All such salary Grade classifications will be submitted to the Ministry of Finance for review and approval prior to implementation. The Ministry of Finance may reject or revise the salary Grade classifications presented by other agencies. The salary Grade classifications of the Ministry of Finance shall be consistent with the guidelines issued by the Ministry of Finance.

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� 3) Based on the budget of the agency and the agreed upon salary Grade classifications, total annual salary budgets will be developed by each ministry, state owned enterprise, or other agency for approval by the Ministry of Finance. The Ministry of Finance may reject or revise the total annual salary budget presented by other agencies. The total annual salary budget of the Ministry of Finance shall be consistent with the guidelines issued by the Ministry of Finance. All ministries, state owned enterprises, or other agencies shall deliver the total annual salary budget to the Ministry of Finance no later than September 15 of each year.

Section 5 Impact of De-Baathification Removals

Public Service Employees who lost their civil service positions as a result of the implementation of CPA Order 1, De-Ba`athification of Iraqi Society, are not entitled to retirement benefits.

Section 6 Reform of Conditions of Public Employment

HIRING AND PROMOTION PRACTICES

1) No ministry, governorate or municipal administration, state owned enterprise, or any other governmental agency is required to employ any person solely as a result of the person’s training or qualifications. All employment decisions will be based upon the needs of the agency.

2) Persons formerly employed by a state agency have no special entitlement to resume their employment. All employment decisions will be based on the needs of the agency. Prior employment with the agency may be a factor in deciding to rehire a former employee to fill a vacancy.

3) Persons from outside the agency may be hired to fill vacancies. Hiring decisions will be based on an individual’s qualifications without regard to race, religion, tribal membership, gender, or regional origin. The best-qualified person will be hired for the position.

4) Duty assignments within an agency are at the discretion of agency heads; provided, however, except as required by exigencies of the work requirements, the majority of the duties of Public Service Employees will be tasks appropriate for their employment Grade.

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� 5) Promotions of Public Service Employees will be based upon the employee’s potential for service, ability to assume more complex duties or responsibilities, and ability to perform at the higher Grade. Longevity of service, without the consideration of other qualifications, shall be an inappropriate basis for promotion.

6) Public Service Employees may only be promoted in the event there is a vacancy in the next higher Grade. Promotions in Grade prior to the occurrence of a vacancy in that Grade are not authorized.

EMPLOYMENT CONDITIONS

7) All Public Service Employees are expected to report to work in accordance with the reasonable instructions of their agency. Public Service Employees who fail to report to work without the authorization of their senior supervisor within the agency have no entitlement to be paid for days they do not work. The managers of Public Service Employees may withhold one day’s pay for each day in which the employee failed to report to work for a substantial portion of the work day. One day’s pay shall be calculated by dividing the total monthly pay specified in Salary Table for the employee by the number of scheduled work days in the month.

8) Public Service Employees who fail to report to work for five consecutive days or ten days in a month, except as authorized by their senior supervisor or as a result of verifiable medical incapacitation, may be dismissed from their employment. No public notice shall be required. Supervisors shall make reasonable attempts to notify employees in person. If the Supervisor cannot, through reasonable attempts, locate the employee after ten days, notice can be delivered to the employee’s last known address and shall be sufficient to terminate the employment. No proof of actual notice shall be required. Public Service Employees may appeal such a dismissal in accordance with the procedures specified in Section 7.

9) Senior agency officials may withhold Step increases in salary in the event the performance of the employee does not meet reasonable expectations of performance for the position held. Public Service Employees whose Step increases are withheld under this provision may appeal this determination to the Ministry of Finance or in accordance with the procedures specified in Section 7.

10)Managers and agency heads will exercise oversight and control over the implementation of this Order to ensure fairness within the system. Employees who fail to adhere to the rules set forth herein may fail to meet the reasonable expectations of performance described above and may be subject to disciplinary measures.

CPA/ORD/8 September 2003/30

� ORDER NUMBER 30

ANNEX A REFORM OF SALARIES AND EMPLOYMENT CONDITIONS OF STATE EMPLOYEES Salary Table Monthly Salary Amounts in Thousands of Iraqi Dinars (000)

Grade Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 SUPER A 2250 2233 2316 2400 2483 2566 2650 2733 2817 3000 SUPER B 1500 1583 1666 1750 1833 1916 1999 2083 2166 2249 1 740 760 780 800 820 840 860 880 900 920 2 574 589 605 620 636 651 667 682 698 713 3 444 456 468 480 492 504 516 528 540 552 4 342 352 361 370 379 389 398 407 416 426 5 264 271 278 285 292 299 306 314 321 328 6 204 209 215 220 226 231 237 242 248 253 7 157 162 166 170 174 179 183 187 191 196 8 125 128 132 135 138 142 145 149 152 155 9 102 105 107 110 113 116 118 121 124 127 10 83 86 88 90 92 95 97 99 101 104 11 69 71 73 75 77 79 81 83 84 86

CPA/ORD/1 September 2003/30