Iraq’s Digital Social Security System: Modernising Social Security Registration and Compliance

Iraq’s social security system is a cornerstone of the country’s labour law framework, designed to safeguard employees’ retirement, healthcare, and social welfare rights while ensuring employers comply with their statutory obligations. The system is principally governed by Labour Law No. 37 of 2015, which establishes mandatory social security coverage for eligible employees and promotes greater social protection within the workplace.

Recent regulatory developments, particularly the introduction of the Digital Social Security System in 2025, reflect the Iraqi Government’s continued efforts to modernise the administration of social security and facilitate compliance through digital services.

This article provides an overview of the legal framework governing social security registration in Iraq, including the obligations imposed on employers, the categories of employees subject to mandatory coverage, and the practical requirements for compliance. It also highlights the treatment of foreign employees and the regulatory developments introduced under the new digital platform.

Legal Framework for Digital Social Security in Iraq

The legal basis for mandatory social security registration in Iraq is established under Labour Law No. 37 of 2015, which serves as the primary legislation governing employment relationships between employers and employees.

Article 2 of the Labour Law provides that the legislation aims to regulate employment relationships, protect the rights of both employers and employees, promote sustainable development founded on social justice and equality, ensure decent work without discrimination, strengthen the national economy, uphold fundamental human rights and freedoms, regulate the employment of foreign nationals working or seeking employment in Iraq, and implement Iraq’s obligations under applicable Arab and international labour conventions.

To facilitate the implementation of the Labour Law, the competent authorities issued Instructions No. 18 of 2023, which establish the administrative procedures governing the registration of companies and employees under Iraq’s social security system. These Instructions simplify compliance requirements and provide practical guidance on the implementation of the statutory obligations imposed on employers.

Employees Covered by Iraq’s Digital Social Security System

Mandatory social security coverage extends to all individuals who qualify as “workers” under Labour Law No. 37 of 2015.

The definition is broad and encompasses employees engaged under written or oral employment contracts, whether employed on a full-time or part-time basis, permanently or temporarily, including individuals engaged for training or probationary purposes, provided they perform work under the direction and supervision of an employer in return for remuneration.

An employee acquires insured status upon registration with the Social Security Department and payment of the prescribed social security contributions to the Workers’ Pension and Social Security Fund. Registration entitles employees to benefit from the retirement, healthcare, and social insurance protections provided under Iraqi law.

The scope of mandatory coverage was further expanded under Instructions No. 18 of 2023 to include additional categories of workers, including employees working in the private, mixed, and cooperative sectors, employees of embassies, diplomatic missions, international organisations and associations, as well as certain family workers and domestic workers.

Digital Social Security Requirements for Foreign Employees

Iraqi law imposes specific requirements on the employment of foreign nationals and their registration under the social security system. The applicable framework is governed by Labour Law No. 37 of 2015, Instructions No. 18 of 2023, and the relevant Council of Ministers’ decisions, which seek to balance the demand for foreign expertise with the protection of the domestic labour market.

Employment of Foreign Nationals

Under Article 30 of Labour Law No. 37 of 2015, employers are prohibited from employing foreign nationals in any capacity unless the individual has obtained a valid work permit issued by the Ministry of Labour and Social Affairs, subject to the prescribed statutory fees.

Article 31 further provides that a foreign national may not commence employment in Iraq before obtaining the required work permit.

Accordingly, employing a foreign national without a valid work permit constitutes a breach of Iraqi labour legislation and may expose the employer to regulatory sanctions and legal liability.

Iraqi-to-Foreign Workforce Ratios

Pursuant to Council of Ministers Decision No. 24832 of 2024, mandatory localisation ratios apply to employers operating in Iraq.

As of 11 March 2025, companies operating in the oil sector and the private sector are generally required to maintain a workforce comprising at least 80% Iraqi nationals and no more than 20% foreign nationals, equivalent to four Iraqi employees for every foreign employee.

For licensed investment companies, the prescribed ratio is 50% Iraqi employees and 50% foreign employees, requiring at least one Iraqi employee for each foreign national employed.

Work Permit Requirements

Under Instructions No. 18 of 2023, work permits are issued by the Foreign Workers Department of the Labour and Social Security Directorate. The application process differs depending on whether the employer is performing a government contract or operates solely within the private sector.

Government Contractors

Companies contracting with Iraqi governmental entities are generally required to submit:

• A formal application on the company’s official letterhead addressed to the Labour and Vocational Training Directorate, including the company’s address, contact details, and the employee’s passport number.
• A list of employees registered through the Digital Social Security Platform.
• A copy of the foreign employee’s entry visa.
• A copy of the employee’s residency permit.
• Evidence of the relevant government contract, investment licence, or official confirmation of the contractual relationship.
• Payment of the prescribed governmental fees, including:
  • IQD 1,000,000 application fee;
  • IQD 250,000 work permit issuance fee;
  • IQD 1,000,000 residency security deposit; and
  • IQD 2,000,000 payable to the Social Security Department.
• A notarised power of attorney in favour of the company’s legal representative, together with a valid Iraqi Bar Association identity card.
• Corporate documentation, including the company’s incorporation documents and registration certificates (or, for foreign companies, the branch registration documents issued by the Companies Registrar), together with the authorised signatory’s identification documents.
• Two recent passport-size photographs of the employee.
• A copy of the employee’s passport.
• A Social Security Clearance Certificate confirming the company’s registration under the social security system and identifying the number of Iraqi and foreign employees.

Private Sector Companies

Private sector employers are generally required to submit similar documentation, including:

• A formal application on the company’s official letterhead.
• A list of employees uploaded through the Digital Social Security Platform.
• Payment of the applicable governmental fees.
• A notarised power of attorney for the company’s legal representative.
• Corporate registration documents.
• Two recent passport photographs of the employee.
• A copy of the employee’s passport.
• A certificate issued by the Social Security Department confirming the company’s social security registration and workforce composition.

Processing Time

Applications should be completed within 60 days of the foreign employee’s entry into Iraq. Failure to complete the work permit process within this period constitutes a violation of Article 30 of the Labour Law.

In practice, work permits generally require 60 to 90 days to process due to coordination between the Ministry of Labour and Social Affairs, the Directorate of Residency, the National Security Service, and other competent governmental authorities.

Validity and Renewal

A work permit is valid for one year and must be renewed annually to ensure the continued legality of the foreign employee’s residence and employment in Iraq.

The current renewal fee is IQD 1,250,000.

Company Registration Under Iraq’s Digital Social Security System

Registration of companies and their employees under Iraq’s social security system is a mandatory legal obligation imposed on employers pursuant to Labour Law No. 37 of 2015. The registration process requires the submission of a formal application, supporting documentation, and completion of regulatory inspections before a company is formally enrolled in the system.

Submitting a Digital Social Security Registration Application

The registration process begins with the submission of a formal application to the Inspection Department of the Pension and Social Security Department for Workers. The application must be submitted on the company’s official letterhead and should include the company’s legal name; its registered address; and a request for registration addressed to the Pension and Social Security Department for Workers.

Supporting Documentation

The supporting documents vary depending on whether the applicant is an Iraqi company or a registered foreign company.

Iraqi Companies

An Iraqi company is generally required to submit the following:

• Founder’s resolution.
• Certificate of Incorporation.
• Certificate of Registration issued by the Companies Registrar at the Ministry of Trade.
• Registration licence issued by the Companies Registrar.
• Financial statements or accounting records (where available).
• National ID card and residence card of the authorised manager.
• Company seal.
• Power of attorney in favour of the company’s legal representative (if applicable).
• National identification documents of employees.
• Employment contracts (if available).
• A statutory undertaking issued by the Social Security Department confirming the accuracy of the information provided and declaring that the company does not employ foreign workers, or, where applicable, copies of the relevant work permits for foreign employees.

Foreign Companies

Foreign companies registered in Iraq are generally required to provide:

• Certificate of registration issued by the Companies Registrar.
• Registration licence issued by the Companies Registrar.
• Resolution approving the registration of the foreign company in Iraq.
• Branch Manager Appointment Resolution, duly legalised by:
  • the Ministry of Foreign Affairs in the country of incorporation;
  • the Iraqi Embassy or Consulate in the country of incorporation; and
  • the Iraqi Ministry of Foreign Affairs.
• A certified list of the company’s board of directors, authenticated through the same legalisation process.
• Financial statements or accounting records (where available).
• Passport of the Branch Manager.
• Company seal.
• Power of attorney in favour of the company’s legal representative.
• National identification documents of employees.
• Employment contracts (if available).
• A statutory undertaking confirming the accuracy of the information submitted and declaring either that the company does not employ foreign workers or, where applicable, enclosing copies of the relevant work permits issued for foreign employees.

The competent authority may request additional documents or clarifications where considered necessary during the review process.

Inspection and Review Process

Following receipt of the completed application and supporting documentation, the Pension and Social Security Department for Workers conducts a series of administrative and compliance procedures before issuing a formal registration decision.

The process generally includes the following steps:

1. On-site inspection: Social security inspectors conduct a site visit to the company’s premises to verify its business activities and confirm the presence of its workforce.
2. Inspection report: The inspector prepares a detailed report recording the findings of the inspection.
3. Review and verification: The report is submitted to the Audit and Follow-up Section within the Inspection Department for review and verification.
4. Referral to the Contributions Department: Upon completion of the review, the file is transferred to the Procedures Section of the Contributions Department for further processing.
5. Issuance of the registration decision: The Director of the Contributions Department issues a formal decision registering the company under the Iraqi social security system in accordance with the powers delegated under Administrative Order No. 2360 and the applicable provisions of Instructions No. 18 of 2023.

For legal purposes, a company is deemed to be subject to the social security regime from the date of its registration with the Companies Registrar, provided that it employs one or more employees. Upon issuance of the registration decision, the company becomes officially registered with the Pension and Social Security Department for Workers and is required to comply with all statutory obligations under the applicable legislation.

Digital Social Security Registration Timeline

In practice, the registration process typically takes 30 to 45 days from the date a complete application and all required supporting documents are submitted. Processing times may vary depending on the size of the company, the completeness of the documentation, and the outcome of the inspection process.

Employee Registration on the Digital Social Security Platform

Once a company has been registered under the Iraqi social security system, the employer is under a continuing legal obligation to register all eligible employees with the Pension and Social Security Department for Workers.

Submission of Employee Information

The employer must submit a comprehensive list of its employees to the Contributions Department. The information required for each employee generally includes:

• Full name;
• Date of commencement of employment;
• National ID number or passport number (for foreign employees);
• Job title or position;
• Monthly salary.

In addition, employers are required to submit an annual workforce declaration each January to the Labour and Social Security Department. The declaration must include updated employee information, including any annual salary adjustments or changes to employment records.

The current government fee for filing the annual declaration is IQD 25,000.

Registration of Employees under the Social Security System

Following submission of the employee lists, the Pension and Social Security Department for Workers reviews the information provided and verifies it against the company’s records and inspection reports.

Once the statutory requirements have been satisfied, each employee is formally registered as an insured employee within the social security system, and the relevant social security contributions become payable.

An employee is not considered legally covered by the social security system unless the employer has submitted the required information and commenced payment of the statutory social security contributions.

Social Security Contributions

Under Instructions No. 18 of 2023, social security contributions are shared between the employer and the employee as follows:

Iraqi Employees

• Employee contribution: 5% of the employee’s monthly salary.
• Employer contribution: 12% of the employee’s monthly salary.

Foreign Employees

• Employee contribution: 5% of the employee’s monthly salary.
• Employer contribution: 20% of the employee’s monthly salary.

The employer is responsible for withholding the employee’s contribution and remitting both the employer’s and employee’s contributions to the competent authority in accordance with the applicable statutory deadlines.

Ongoing Reporting Obligations

Employers are required to notify the Pension and Social Security Department whenever a new employee is hired; or an employee’s employment terminates, whether through resignation, dismissal, or otherwise.

Such notifications must be submitted within 30 days of the relevant event.

Failure to notify the competent authority within the prescribed period may result in financial penalties under Instructions No. 18 of 2023. Furthermore, pursuant to Article 8(1) of the Instructions, where an employer fails to notify the authority that an employee’s service has terminated, the employer remains liable for all social security contributions in respect of that employee until the date the termination is formally reported.

Licensing of Private Training Centre

With the increasing demand for specialised professional skills and workforce development, the establishment of private training centres has become an important component of Iraq’s private sector. To regulate this activity, the Ministry of Labour and Social Affairs has introduced a licensing framework under Labour Law No. 37 of 2015 and Instructions No. 4 of 2019, establishing the legal requirements for operating private vocational training centres.

Legal Framework

Article 26 of Labour Law No. 37 of 2015 regulates vocational training activities and requires private companies and non-governmental organisations to obtain a licence from the Ministry of Labour and Social Affairs before conducting training activities.

The legislation also provides for:

• the issuance of training licences by the Labour and Vocational Training Directorate;
• the establishment of a specialised committee responsible for approving new vocational training programmes in response to labour market needs; and
• payment of a government application fee of IQD 1,000,000, in addition to inspection and evaluation fees.

Licensing Requirements

To obtain a licence for a private training centre, applicants must satisfy a number of legal and administrative requirements.

Eligible Applicants

Applications may be submitted by:

• Iraqi or foreign private companies that maintain a registered branch in Iraq; or
• Non-governmental organisations registered with the Iraqi NGO Directorate whose constitutional objectives include the provision of training services.

Application Requirements

Applicants are required to submit a formal application addressed to the Director General of the Labour and Vocational Training Directorate specifying the proposed training programmes; the curriculum to be delivered; and details of the proposed instructors and their professional qualifications.

The application must generally be accompanied by:

• identification documents for the company owner or head of the organisation;
• an authorisation letter for the designated representative;
• details of the qualifications and professional experience of the administrative and training staff, together with their curriculum vitae;
• evidence that instructors have completed the Ministry’s recognised “Training Methods” programme where no equivalent training qualification is available;
• a title deed or notarised lease agreement for the training premises;
• a curriculum for each training programme, deposited with the National Library or otherwise approved by the Labour and Vocational Training Directorate; and
• where a proposed training programme falls outside the approved curriculum, submission of the programme for review by the Ministry’s specialised committee.

Government Fees

The current statutory fees include:

• IQD 1,000,000 – application fee;
• IQD 750,000 – initial inspection fee;
• IQD 750,000 – evaluation and follow-up inspection fee; and
• IQD 3,000,000 – licence issuance fee.

A training centre licence remains valid for three years.

Registered non-profit organisations are exempt from these governmental fees.

Regulation and Supervision of Training Activities

Licensed training centres are subject to ongoing regulatory oversight under Iraqi labour legislation.

Key compliance requirements include:

• The relationship between the training centre and each trainee must be governed by a written training agreement setting out the objectives, stages, duration of the training programme, and the respective rights and obligations of the parties, in accordance with Article 27 of Labour Law No. 37 of 2015.
• During the training period, the Vocational Training Directorate is responsible for paying social security contributions in cases where a trainee suffers an occupational injury or dies as a result of the training.
• Training centres must comply with occupational health and safety requirements, and trainees must undergo a medical examination before commencing the training programme.

Penalties for Non-Compliance

Article 29 of Labour Law No. 37 of 2015 provides for a number of enforcement measures in the event of non-compliance.

These include:

• Administrative fines ranging from IQD 1,000,000 to IQD 2,000,000 for violations of Article 27(3) of the Labour Law.
• Immediate revocation of the training centre licence. A revoked licence may only be reissued after the relevant violations have been remedied, a new application has been submitted, and all inspection and evaluation costs have been paid.

Digital Transformation of Iraq’s Social Security System

The Digital Social Security Platform

In 2025, the Ministry of Labour and Social Affairs launched the Digital Social Security Platform, marking a significant step towards the digitalisation of Iraq’s social security administration. The platform became operational in February 2025 and is intended to streamline registration procedures, improve regulatory oversight, and facilitate electronic interaction between employers and the competent authorities.

The platform currently consists of two principal services: Project Electronic Portal; and Voluntary Pension Service.

Company Registration on the Digital Platform

To establish an account on the Project Electronic Portal, a company must provide:

• a valid corporate email address;
• a secure account password; and
• project and corporate information, including:
  • the company’s registration certificate and registration licence;
  • any work licence relating to the employment of foreign workers;
  • the appointment resolution of the branch manager or authorised manager;
  • the company’s social security registration certificate;
  • the company’s social security registration number;
  • identification documents of the authorised manager (passport for foreign nationals or Iraqi national ID and residence card for Iraqi nationals);
  • employee information, including names, identification documents, job titles and salaries; and
  • the latest payment receipt or evidence of social security contribution payments, where applicable.

Electronic Services Available

The Digital Social Security Platform enables companies to manage their social security obligations electronically through a range of online services, including:

• Application for a Social Security Clearance Certificate for submission to governmental authorities.
  • Current government fee: IQD 35,000 per certificate.
• Monthly contribution management, including:
  • registration of new employees;
  • removal of former employees; and
  • updating employee registration records within the system.
• Submission of the Annual Workforce Declaration, which must be filed each January.
  • Current government fee: IQD 25,000.
• Requesting the mandatory annual inspection of the company’s premises by the Social Security Department.

Health Insurance Through Iraq’s Digital Social Security System

A new health insurance scheme has recently been introduced for employees registered under Iraq’s social security system. Each insured employee is issued a health insurance card enabling access to healthcare services covered by the scheme.

The programme is designed to cover a range of medical expenses, including consultations, diagnostic services, surgical procedures, prescribed medication and other approved healthcare services.

Objectives of the Scheme

The principal objectives of the health insurance programme are to:

• ensure employees have access to essential healthcare services;
• reduce the financial burden associated with medical treatment; and
• enhance social protection by improving access to healthcare.

Annual Coverage Limits

The current annual coverage limits include:

Benefit	Annual Coverage
Surgical procedures	IQD 5,500,000
Medical consultations	IQD 300,000
Laboratory tests and diagnostic imaging	IQD 400,000
Prescription medication	IQD 300,000
Personal accident and death benefits	IQD 3,000,000

The introduction of the health insurance scheme represents an important development in Iraq’s labour and social protection framework, reflecting the government’s commitment to improving healthcare coverage for employees in both the public and private sectors.

Practical Considerations

It should be noted that the majority of social security services are now processed exclusively through the Digital Social Security Platform. The transition to a digital system is intended to simplify registration procedures, facilitate ongoing compliance, improve monitoring of contribution payments, and strengthen regulatory oversight.

Conclusion: Digital Social Security Compliance for Employers

Registration under Iraq’s social security system is a fundamental legal obligation for employers operating in Iraq. Compliance extends beyond the initial registration process and includes ongoing obligations relating to employee registration, payment of social security contributions, reporting requirements, and regulatory compliance.

Given the continued development of Iraq’s labour and social security framework—particularly the introduction of digital registration systems, enhanced compliance measures, and new health insurance benefits—employers should ensure that their internal employment practices remain fully aligned with the applicable legal and regulatory requirements. Early compliance can significantly reduce the risk of administrative penalties, financial liabilities, and operational disruptions.

FAQ on Iraq’s Digital Social Security System 2025