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[size=36]ILO: Enacting the Social Security Law in Iraq is a Historic Step Towards Protecting Workers[/size]
Local | 06:41 - 05/11/2024
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Mawazine News - Baghdad
The Director of Social Protection at the International Labor Organization, Igor Bosk, confirmed today, Tuesday, that the Social Security Law in Iraq guarantees the preservation of workers’ rights and their economic flexibility, while he linked the success of implementing the law to relying on simplified instructions and rapid procedures, noting that the enactment of the Social Security Law in Iraq is a historic step towards protecting workers and achieving social justice.
"Social security is not just a safety net, but a transformative tool that enables workers to be active contributors to their own well-being, rather than passive recipients of aid," Bosk said in a televised interview followed by Mawazine News, noting that "this empowerment enhances dignity, resilience and economic participation.
Bosk stressed that "a strong social security system enhances formal employment and encourages active participation in the labor market, which are essential elements for Iraq's long-term growth and stability."
He considered that "the social security system forms the backbone of a comprehensive social protection framework, as it shifts from providing temporary relief to sustainable protection against various risks throughout life stages, such as old age, illness, disability and unemployment."
A historic step
Bosk pointed out that "the Iraqi parliament took a historic step by enacting Law No. 18 on retirement and social security, an achievement that was guided by the technical expertise of the International Labor Organization, and is in line with the Social Security Convention on Minimum Standards No. 102 ratified by Iraq," adding that "the focus now shifts to implementation."
He stressed "the importance of passing a law similar to Law No. 18 in the Kurdistan Region of Iraq,” expressing “the ILO’s readiness to support this effort.”
Regarding the public sector in Iraq, Bosk pointed out that “about a third of the workforce works in the public sector, with more than 50% of civil servants enjoying generous pensions and comprehensive social security coverage,” stressing that “the new law is a significant improvement in social security benefits for the private sector, contributing to narrowing the gap between public and private sector workers, thus creating a more balanced and attractive labor market across all sectors.”
Challenges and opportunities
Despite the progress made, Bosk pointed out that “there are still significant challenges facing the implementation of social security in Iraq,” saying: “Currently, only about 6% of private sector employees are covered by social security, with a slightly higher rate of 16% in the Kurdistan Region.”
“Expanding coverage – particularly in the informal economy – is a major challenge. According to the 2021 Labour Force Survey, around two-thirds of Iraqi workers work in informal jobs, equivalent to around 5.7 million people working in informal jobs,” he added, stressing that “social security is essential to regularizing these jobs, especially in sectors such as agriculture, construction, manufacturing and services.”
He added that “structural issues discourage the working poor from enrolling in social security, as many fear losing crucial social benefits or facing heavy taxes.”
He pointed out that “employers’ reliance on the informal economy and weak unions and labor inspections compound these challenges, calling for bold reforms and sustained commitment.”
Instructions and procedures required
One year after the enactment of the new retirement and social security law, Bosque called for the need for “clear and simplified instructions for registration; in order to enable social security offices to effectively expand coverage,” and stressed, “the importance of simplifying registration procedures, administrative processes and disbursement procedures; in order to make social security benefits faster, more transparent and easier to access.”
“By implementing digital systems and ensuring checks and balances, we can reduce bureaucratic delays, enhance efficiency, and build trust among users, fostering a more responsive and accountable social security system,”
he stressed. “The fund that receives contributions from employers and workers must be managed according to the highest standards of governance and accountability, to ensure transparency and reliability in the management of these funds,” Bosk
noted. “Good management of the fund not only provides benefits to current beneficiaries, but also ensures the sustainability of the system for future generations,” he
added. “Many older people in Iraq, particularly women who were unable to participate in the formal labor market, remain without adequate social security coverage, so designing a social pension that meets their specific needs will be a crucial step towards ensuring comprehensive protection for all, regardless of previous employment status,” he added.
The importance of the national campaign
Bosk stressed that “a successful transition to a comprehensive social security system depends largely on effective communication,” indicating that “the campaign we are launching today is essential to bridge the knowledge gap, ensuring that both workers and employers understand the registration process and the benefits provided by social security, and how to access them.”
He stated that “awareness of workers’ rights and tangible benefits, such as old-age income security, survivor and disability benefits, health coverage, maternity protection, work injury compensation, and unemployment protection, will enable them to seek formal jobs and demand proper registration.”
He continued by saying: “For employers, they can clearly communicate about the registration process, their responsibilities, and the long-term benefits, such as a more stable and productive workforce, and reduced resistance to legalizing labor relations.”
He stressed the “importance of the important role of this campaign in employing a multi-level communication strategy that engages with local communities and leverages social media platforms and mainstream media to reach the largest number of individuals.”
In conclusion, Bosk considered that “building a comprehensive understanding and collective commitment through this campaign will contribute to building a strong and comprehensive social security system in Iraq,” stressing, “Together we can make social security the cornerstone of a just and prosperous future for all Iraqis.”
Last July, Prime Minister Mohammed Shia al-Sudani stressed, while hosting a group of businessmen specialized in the oil industry, the need for private sector companies to adhere to the retirement and social security law for workers; in order to expand care for them in this sector, and increase the number of insured persons.
Bosk stressed that "a strong social security system enhances formal employment and encourages active participation in the labor market, which are essential elements for Iraq's long-term growth and stability."
He considered that "the social security system forms the backbone of a comprehensive social protection framework, as it shifts from providing temporary relief to sustainable protection against various risks throughout life stages, such as old age, illness, disability and unemployment."
A historic step
Bosk pointed out that "the Iraqi parliament took a historic step by enacting Law No. 18 on retirement and social security, an achievement that was guided by the technical expertise of the International Labor Organization, and is in line with the Social Security Convention on Minimum Standards No. 102 ratified by Iraq," adding that "the focus now shifts to implementation."
He stressed "the importance of passing a law similar to Law No. 18 in the Kurdistan Region of Iraq,” expressing “the ILO’s readiness to support this effort.”
Regarding the public sector in Iraq, Bosk pointed out that “about a third of the workforce works in the public sector, with more than 50% of civil servants enjoying generous pensions and comprehensive social security coverage,” stressing that “the new law is a significant improvement in social security benefits for the private sector, contributing to narrowing the gap between public and private sector workers, thus creating a more balanced and attractive labor market across all sectors.”
Challenges and opportunities
Despite the progress made, Bosk pointed out that “there are still significant challenges facing the implementation of social security in Iraq,” saying: “Currently, only about 6% of private sector employees are covered by social security, with a slightly higher rate of 16% in the Kurdistan Region.”
“Expanding coverage – particularly in the informal economy – is a major challenge. According to the 2021 Labour Force Survey, around two-thirds of Iraqi workers work in informal jobs, equivalent to around 5.7 million people working in informal jobs,” he added, stressing that “social security is essential to regularizing these jobs, especially in sectors such as agriculture, construction, manufacturing and services.”
He added that “structural issues discourage the working poor from enrolling in social security, as many fear losing crucial social benefits or facing heavy taxes.”
He pointed out that “employers’ reliance on the informal economy and weak unions and labor inspections compound these challenges, calling for bold reforms and sustained commitment.”
Instructions and procedures required
One year after the enactment of the new retirement and social security law, Bosque called for the need for “clear and simplified instructions for registration; in order to enable social security offices to effectively expand coverage,” and stressed, “the importance of simplifying registration procedures, administrative processes and disbursement procedures; in order to make social security benefits faster, more transparent and easier to access.”
“By implementing digital systems and ensuring checks and balances, we can reduce bureaucratic delays, enhance efficiency, and build trust among users, fostering a more responsive and accountable social security system,”
he stressed. “The fund that receives contributions from employers and workers must be managed according to the highest standards of governance and accountability, to ensure transparency and reliability in the management of these funds,” Bosk
noted. “Good management of the fund not only provides benefits to current beneficiaries, but also ensures the sustainability of the system for future generations,” he
added. “Many older people in Iraq, particularly women who were unable to participate in the formal labor market, remain without adequate social security coverage, so designing a social pension that meets their specific needs will be a crucial step towards ensuring comprehensive protection for all, regardless of previous employment status,” he added.
The importance of the national campaign
Bosk stressed that “a successful transition to a comprehensive social security system depends largely on effective communication,” indicating that “the campaign we are launching today is essential to bridge the knowledge gap, ensuring that both workers and employers understand the registration process and the benefits provided by social security, and how to access them.”
He stated that “awareness of workers’ rights and tangible benefits, such as old-age income security, survivor and disability benefits, health coverage, maternity protection, work injury compensation, and unemployment protection, will enable them to seek formal jobs and demand proper registration.”
He continued by saying: “For employers, they can clearly communicate about the registration process, their responsibilities, and the long-term benefits, such as a more stable and productive workforce, and reduced resistance to legalizing labor relations.”
He stressed the “importance of the important role of this campaign in employing a multi-level communication strategy that engages with local communities and leverages social media platforms and mainstream media to reach the largest number of individuals.”
In conclusion, Bosk considered that “building a comprehensive understanding and collective commitment through this campaign will contribute to building a strong and comprehensive social security system in Iraq,” stressing, “Together we can make social security the cornerstone of a just and prosperous future for all Iraqis.”
Last July, Prime Minister Mohammed Shia al-Sudani stressed, while hosting a group of businessmen specialized in the oil industry, the need for private sector companies to adhere to the retirement and social security law for workers; in order to expand care for them in this sector, and increase the number of insured persons.
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