The foundations of Social Security contributions deductions in the Iraqi Workers’ Retirement and Social Security Law No. 18 of 2023.
The foundations of social security contributions deductions in the Iraqi Workers’ Retirement and Social Security Law No. 18 of 2023.
First: Percentage of deductions and S.S contributions:
Article (14/Second) of the Retirement and Social Security Law for Workers No. 2023 stipulates the following:
- Deduction rate from the registered in the S.S worker’s salary:
5% shall be deducted from the total wages and allowances received by the worker (Article 14/II-A) of the Retirement and Social Security Law.
- Percentage of employers’ contributions:
- The percentage of employers’ contributions for their registered workers shall be 12% of the total wages and allowances received by the worker (Article 14/II-B-1) of the Retirement and Social Security Law.
- 25% on employers in the private and mixed sectors who practice a business whose profits result from the sale of oil and other hydrocarbons produced in Iraq and exported from it or the sale of fields and interests related to crude oil or other hydrocarbons. (Article 14/II-B-2) of the Retirement and Social Security Law.
Second: The Tax base on which the percentage of social security contributions is imposed:
According to the text of Article (15) of the Retirement and Social Security Law No. 18 of 2023, the S.S deductions from the worker’s wage and employers’ contributions are calculated on the basis of the total (wage) and the allowances that the worker actually receives, taking into consideration that the wage approved in determining them may not be less than the minimum wage prescribed in the profession of the worker or the maximum wage, whichever is higher, provided that the wage adopted in determining the contribution rate does not exceed five times the minimum wage.
The Retirement and Social Security Law for Workers included the following definitions:
- Article 1 / 11 defines the (Wage):- (All the amounts received by the worker in cash and in-kind and all kinds of allocations for his work).
- Article (15) defines the (minimum wage in the profession of the worker): – The wage specified for the worker’s profession under the collective agreement binding on the employer stipulated in Article (62 / First) of the Iraqi Labor Law in force No. 37 of 2015.
- (the minimum wage), it means: – (the wage prescribed by law or the wage prescribed in the employer’s project in accordance with the individual or collective labor contract, whichever is more).
Article (63 / First) of the Labor Law stipulates the formation of a committee to propose the minimum wage for the worker periodically to be presented to the Council of Ministers for issuance by a decision specifying the minimum wage at a certain amount that is currently (350 thousand dinars per month) according to the latest decision of the Council of Ministers issued No. 178 of 2013.
Third: The effective date of the Retirement and Social Security Law for Workers No. 18 of 2023:
The Retirement and Social Security Law for Workers was considered effective after 90 days from the date of its publication in the Official Gazette, and since it was published in the Official Gazette No. 4734 on 28/8/2023, it will be effective as of 26/11/2023.
You can find the Arabic translation of the article in the link below: