PM’s office announces directive to transition private sector salaries to digital banking

BAGHDAD — Prime Minister Mohammed Shia Al-Sudani’s office announced directives on Monday to shift private sector salaries to electronic payments, aligning them with the digital payroll system currently used in the government sector. The Ministry of Labor and Social Affairs, in coordination with the Central Bank of Iraq and various private sector institutions, has been tasked with establishing a framework to facilitate this transition.

The government’s statement emphasized a comprehensive modernization initiative across Iraqi institutions, mandating all ministries to eliminate cash payments in favor of electronic methods for collections and other transactions. Each ministry and institution is required to submit a detailed transition plan by Dec. 31, 2024, aiming for full implementation of the plans by July 1, 2025.

Iraq’s public sector already uses the Qi Card system, an electronic payment platform developed in partnership with Rafidain Bank, for salary disbursement. This system allows salaries to be deposited directly onto employees’ Qi Cards—debit-style cards that can be used at ATMs, for in-store purchases, and for online transactions across Iraq. The Qi Card system has improved efficiency in salary distribution, reduced dependence on cash, and expanded financial inclusion for government employees.

In addition to transitioning salaries, all government ministries and institutions are instructed to move away from cash transactions in collections and other financial activities, with a full shift to digital payments by mid-2025.