When does an insured worker become entitled to a pension under Law No. 18 of 2023?
Someone working for a private, mixed or cooperative company does not retire under the Unified Retirement Law that governs State employees. Their pension is governed by Law No. 18 of 2023 on workers' retirement and social security, administered by the Department of Workers' Pension and Social Security. How the two systems differ is set out in State employee pensions vs. private-sector pensions. This page answers a narrower question: at what point does an insured worker actually have a right to a pension? The Law Office of Ali Barakat, in Baghdad, al-Yarmouk, handles workers' files on this.
Six age-and-service combinations
Age alone is not enough, and nor is service alone. Article 29 sets out six cases; meeting any one of them is sufficient:
| Who | Age | Minimum insured service |
|---|---|---|
| Man | 63 | 15 years |
| Woman | 58 | 15 years |
| Man | 60 | 20 years |
| Woman | 55 | 20 years |
| Man | 50 | 30 years |
| Woman | 50 | 25 years |
The longer the service, the lower the age required. Age is established only from official documents (article 34), so anyone whose papers carry a wrong birth date should have it corrected before applying.
Article 31 gives a separate route to a working mother, whether married, widowed or divorced, who has custody of her children. She may ask to be retired once she has fifteen years of insured service, at least three children all aged fifteen or under, and she leaves work to look after them.
Periods left out of the count
This is where most surprises come from. Article 32 excludes every stretch of time with no contributions paid on it, even if the worker really was working, with an exception for injury and death. A worker whose employer failed to pay can bring a claim against the employer to make it pay. For that reason it is wise to check your insured-service record with the department regularly rather than in your final year.
Reaching the age without enough service
Article 33 helps someone who has reached an article 29 age but lacks the service. They may buy service, or add unregistered labour service or service outside the law's coverage. The added period cannot exceed five years, and the worker must pay contributions for it covering the worker's portion and the employer's portion together, seventeen per cent in total, based on their average pay over the last five contribution years.
Someone who never qualifies for a pension may still be paid a single lump-sum award under article 46 when their service ends and one of its triggers applies, such as reaching fifty-five, a woman resigning because of marriage or childbirth, or leaving Iraq for good.
How the pension is worked out
Article 35 takes average monthly pay over the last five years, multiplies it by 2.5 per cent, then by the count of insured months, and divides the result by twelve; a part month at the end counts as a whole one. Article 36 then sets a floor and a ceiling: never below the statutory minimum pay for a worker, and no higher than eighty per cent of average pay, partial-disability pensions excepted.
Pensions and compensation paid under this law are exempt from every tax and charge (article 45), and a pension cannot be sold or assigned to anyone else (article 38).
Combining pensions and moving between systems
Two full pensions cannot be drawn together, nor a full pension with an end-of-service award unless a text allows it, nor a full pension with social assistance (article 37). Where the worker qualifies for more than one, the better one is granted. Article 39 allows insured service to be transferred to another pension scheme created by law, and the other way round; the scheme being left pays across what corresponds to that period.
Do not delay the application
Under article 100, a pensioner who lets more than two years pass after becoming entitled before applying receives the pension only from the application date, unless there was a legitimate excuse; minors and those treated like them are excepted. Delay can cost months of pension. If the application is refused, the route to challenge it is explained in objecting to social security decisions.
Legal basis and sources
Frequently asked questions
I am 60 with 18 years of insured service. Do I qualify?
If you are a man, not yet: at sixty the law asks for twenty years, and your present service will be enough at sixty-three. A woman with the same record qualifies under the second case, fifty-eight with fifteen years.
I worked for years without being registered. Does that count?
Not until the contributions are paid; a claim against the employer can compel payment.
Is tax deducted from the pension?
No. Article 45 exempts it from all taxes and charges.
Related topics and articles
- 01State 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.
- 02The reach of Law No. 18 of 2023: which groups fall under Iraq's workers' social securityThe reach of Workers' Pension and Social Security Law No. 18 of 2023: private, mixed and cooperative sector workers, trainees and probationers, the self-employed and employers, informal work, family members in the business, Iraqis at embassies and organisations, Iraqis abroad, and foreign workers.
- 03Objecting to decisions of the workers' social-security departmentObjecting to a Director General decision before the Fund board (art. 7), and a medical objection within thirty days under article 87.
- 04The employer's duties in workers' social securityEmployer duties under Law No. 18 of 2023: yearly particulars, payment time limits, clearance, contractors and work injury.
- 05Opening a social-security file at the first hire after a company is formedFirst-hire social-security file after a company is formed: coverage, wage base, particulars and the security document.