Economy

Kurdistan Region enrolls 182,000 workers in social security scheme, penalizes non-compliant projects

The Pension and Social Insurance Act safeguards the employment rights of workers in the Kurdistan Region.

Kurdistan Region Workers in a processing facility, likely involved in food packaging, wearing hygiene gear such as hairnets and protective clothing. (Photo: KRG)
Kurdistan Region Workers in a processing facility, likely involved in food packaging, wearing hygiene gear such as hairnets and protective clothing. (Photo: KRG)
Kurdistan KRG Ministry of Labor and Social Affairs workers

ERBIL (Kurdistan24) – The Ministry of Labor and Social Affairs of the Kurdistan Regional Government (KRG) reported significant progress in employment rights under the ninth cabinet, with 182,000 local and foreign workers enrolled in the social security and pension scheme. The ministry also penalized 1,816 projects for failing to comply with regulations that require businesses to register employees in the scheme.

The Pension and Social Insurance Act safeguards the employment rights of workers in the Kurdistan Region. This legislation allows male employees to retire after 20 years of service or upon reaching 60, while female employees can retire after 20 years or at 55.

In the past four years, 957 workers have benefited from the Social Insurance Fund (SIF), which provides pension benefits for retired employees. Regulations also stipulate that local businesses must employ at least 75% Kurdistan Region citizens, limiting foreign workers to 25%.

Employees contribute 5% of their salary to the social security scheme, while employers contribute 12%. These contributions are managed by the SIF, ensuring workers receive pension benefits upon reaching retirement age.

The KRG has taken strict measures to enforce compliance, with businesses required to register employees with the Directorate of Social Security. Failure to do so results in penalties from the Ministry of Labor and Social Affairs.