Introduction:

In May 2023, the Iraqi Parliament passed a new law for retirement and social security for workers, replacing Law No. 39 of 1971. The new law introduces important and positive changes to several legal articles, expanding the coverage of the social security system to include new categories that were not covered by the previous law. The new law significantly broadens the legal coverage of the social security system to include all workers, including informal and self-employed workers, as well as private sector workers and their families. Additionally, the law provides healthcare insurance obtained from public, cooperative, and private service providers. It also facilitates the transition of workers between the public, private, cooperative, and mixed sectors while maintaining retirement benefits, allowances, and promotions earned in each sector.

The new law also imposes restrictions on employing foreign labor by introducing new fees. A work permit fee of 2 million dinars per foreign worker entering Iraq and a registration fee of 750,000 dinars for foreign workers in the social security system were introduced. These fees increase the cost of employing foreign workers, thereby encouraging employers to hire local labor.

The enactment of the new law addresses the changing needs of the Iraqi market since the previous law was passed in 1971. It is in line with the International Labor Organization (ILO) Convention on Social Security (Minimum Standards), 1952 (No. 102), which was officially ratified by the Iraqi government in March 2023. The ILO welcomed the new law, describing it as a prominent step in expanding worker support by covering a wide range of risks. For instance, the inclusion of unemployment benefits is crucial in preventing unemployed workers from falling into poverty and providing them with support while seeking new employment opportunities. Similarly, maternity benefits provide support to women before, during, and after childbirth, potentially improving their health status.

Read more: Workers’Retirement