GENTA

IRAQ - Obligation to pay employees in Iraqi dinars., 2024/02/06

How to ensure Payroll Management in Iraq following the authorities' decision that all salaries of Iraqi employees must be paid in Iraqi dinars since January 1, 2024:

In order to uphold the sovereignty of the country, which cannot function with the use of two different currencies, the Central Bank and the Prime Minister have decided to prohibit the use of the dollar for the payment of salaries to Iraqi employees (https://en.964media.com/2892/).

Now, international companies operating in Iraq must, on their own or by outsourcing the payroll function to a local specialized company:

• Have a dedicated Iraqi legal entity for payroll management or outsource the function to a local specialized company.
• Ensure payment of salaries in Iraqi dinars (IQD).
• Assist employees in opening a bank account to facilitate the payment process.

To learn more, please feel free to contact our experts at contact@genta-international.com.

Download