Retirement file papers and common reasons for delay
The papers a State employee retirement file rests on, and why some files are delayed: age mismatches, unrecorded service, unpaid contributions.
Read →Retirement transactions
The retirement gratuity, the monthly lump sum and the end-of-service award
In briefAn employee with less than fifteen years of pensionable service receives the retirement gratuity instead of a pension, calculated as the last basic salary times two times the years of service. The end-of-service award is a separate right for those with twenty-five years of service, paid in addition to the pension, not instead of it.
Three terms sound alike but have different rules: the "retirement gratuity" (al-mukafa'a al-taqa'udiya), the "lump sum" (al-mablagh al-maqtu') and, third, the "end-of-service award" (mukafa'at nihayat al-khidma). Confusing them leads an employee to expect an amount that is not due, or to miss a choice the law grants only once. The short rule: the gratuity and the lump sum replace a pension for those with short service, whereas the end-of-service award is added to the pension for those with long service.
The retirement gratuity: for service under fifteen years
Article 1 of the Unified Retirement Law defines the retirement gratuity as the amount granted to the employee instead of a pension. Article 22 applies it to anyone whose pensionable service is under fifteen years — the minimum for a pension under Article 21.
It is calculated as the employee's last basic salary, multiplied by two, then by the number of years of pensionable service. A fraction of a year of six months or more counts as a full year. The basic salary, as the law defines it, excludes allowances.
The gratuity has an effect many people overlook: once received, no further service can be added to pensionable service unless the person is reappointed to a pensionable post. If the employee has earlier service that could be added, such as military or contract service, it is better to raise it before retirement, because an addition may lift service to fifteen years and turn the entitlement from a gratuity into a pension.
The lump sum: a one-time choice
Under Article 1, the lump sum is an amount paid monthly to someone with pensionable service of ten years or more but less than fifteen. Paragraph VI of Article 21 gives a person retired on reaching the statutory age, with service in that range, a choice between the lump sum and the gratuity, and the choice is made once. The amount steps up with length of service as the text sets out.
The practical difference is that the gratuity is paid at once, while the lump sum is monthly income. Choosing between them is a personal decision that depends on the retiree's circumstances; the office explains the effect of each option and does not decide for the client.
Twenty-five years or more: the end-of-service award
The end-of-service award is a separate right in paragraph IX of Article 21, as replaced by the amending Law No. 26 of 2019. It is granted to a retiree with at least twenty-five years of service, calculated on the full last salary with allowances multiplied by twelve. The same rule applies to an employee who died in service with the same length of service, and it is paid to the survivors.
The National Pension Authority has stated that the reward is calculated on the last total salary for twelve months, while the Ministry of Finance says it arrives together with the first pension payment. Under Article 32, the State's general budget bears this reward, while the State Employees' Pension Fund bears the gratuity and the lump sum.
Quick comparison
- Retirement gratuity: service under fifteen years; replaces the pension; paid once; last basic salary × 2 × years of service.
- Lump sum: ten to under fifteen years of service for a person retired at the statutory age; chosen instead of the gratuity; monthly.
- End-of-service reward: twenty-five years of service or more; in addition to the pension; last total salary with allowances × 12.
A private-sector worker's end-of-service benefit is a different matter, governed by another law. See State employee pensions vs. private-sector pensions.
Reappointment after receiving the gratuity
Article 23 deals with someone who took the gratuity and then returned to a pensionable post: the earlier service is counted after the gratuity is returned and the contribution difference paid, and the sum can be repaid through salary deductions spread over a period fixed in the text.
Legal basis and sources
- Unified Retirement Law No. 9 of 2014, as amended, Articles 1, 21, 22, 23 and 32
- Law No. 26 of 2019, First Amendment to the Unified Retirement Law
- Ministry of Finance — National Pension Authority (end-of-service award paid with the first pension)
- Iraqi News Agency — the National Pension Authority on the end-of-service award
Frequently asked questions
How is the retirement gratuity calculated?
Last basic salary without allowances, times two, times the number of years of pensionable service, with a fraction of six months or more counted as a full year, under Article 22.
Does the end-of-service award replace the pension?
No. It is paid to those with twenty-five years of service in addition to the pension, while the Ministry of Finance says it comes with the first pension payment.
Can I add service after receiving the retirement gratuity?
Not unless you are reappointed to a pensionable post, in which case the gratuity is returned under Article 23.
Related topics and articles
- 01What counts as pensionable service, and how is earlier service added?What counts as pensionable service under Iraq's Unified Retirement Law: contributions, military, contract and advocacy service, exclusions, transfers.
- 02State employee pensions vs. private-sector worker pensions: what is the difference?How a State employee pension (Law No. 9 of 2014) differs from a private-sector worker pension (Law No. 18 of 2023): body, conditions, service transfer.
- 03Early retirement in Iraq: when can a State employee request retirement?Conditions for requesting retirement before the statutory age in Iraq under Article 12 of the Unified Retirement Law: age or service, mothers, timing.
- 04Retirement on health grounds and the medical committee in IraqWhen an Iraqi State employee is retired on health grounds: the official medical committee, effects on service and pension, work injury, the 30-day appeal.
- 05A deceased employee's pension: survivors' rights after the death of an employee or pensionerWho receives a deceased employee's pension in Iraq, each survivor group's conditions, the distribution shares, and when a share stops or returns.
Pension contributions and the deduction from a civil servant’s salary
Article 17 deducts 25% of salary (10% employee, 15% treasury) into the Fund. Self-funded bodies late over 6 months face a 3% monthly fine.
Read →Transferring a pension after death or between banks
After death, successors request allocation under Article 25. Shares follow Article 28. A bank change follows the Authority’s instructions, not a statute.
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