Shafaq News/ The head of the European Union mission in Iraq, Thomas Seiler, on Tuesday, considered excluding of certain private sector workers from Iraq’s Social Security and Pension Law as "unfair."
During the launch of a social security awareness campaign, Seiler said, "One year ago, the Iraqi Parliament passed Law No. 18 of 2023 concerning retirement and social security for workers, and today we celebrate the launch of an awareness campaign to expand social security to include the private sector…If Iraq can fully implement this law, it will establish a system that promotes security and dignity for all workers in the country."
However, Seiler noted that further steps are necessary, including issuing regulations to simplify the social security registration process, pointing out additional obstacles, such as the requirement excluding social security beneficiaries from social welfare programs, saying it "is not fair for informal workers in agriculture, construction, services, and manufacturing, who often have unstable incomes that are insufficient to meet basic needs."
About SOCIAL SECURITY LAW
On December 1, 2023, Iraq’s government enacted a new social security law, reforming the country’s social insurance pension program for private-sector workers. Key changes include expanded coverage, new registration fees for foreign nationals, an increased combined contribution rate, adjusted covered earnings, updated retirement options, and revised benefit calculations. The law also broadens social protections by introducing paid maternity leave and public unemployment insurance. Approved by Iraq’s parliament on May 17, the law followed years of negotiations among government, employer, and worker representatives.
Key Provisions:
- Expanded Coverage: The law now includes self-employed individuals, informal-sector workers, and contributing family members, extending beyond the previously covered formal private-sector employees.
- Foreign National Fees: Employers must pay a one-time registration fee for each foreign national: 750,000 dinars (US$573) for registrations before December 1, or 2 million dinars (US$1,528) thereafter.
- Increased Contribution Rate: Combined contributions rose from 17% to 25% of monthly earnings for non-oil and gas sector employees, with the government covering the additional 8% for Iraqi employees. Rates remain higher in the oil and gas sector.
- Retirement Options: Men can retire at age 60 with 20 years of contributions or at 63 with 15 years, while women can retire at 55 or 58 under similar terms.
- Benefit Calculations: Pensions are now based on average earnings over the last 5 years of employment, with the maximum monthly pension capped at 80% of reference earnings.
The law also introduces paid maternity leave and public unemployment insurance, marking a significant step in expanding social protection.