As a firm we have a strong commitment to our corporate sustainability principles, and this year we joined the United Nations Global Compact, an initiative dedicated to promoting responsible business practices and advancing the United Nations Sustainable Development Goals (SDGs). Our goals include Education, gender equality, climate action, justice for all, and sustainable partnerships. You can learn about our actions plans and targets, here.
In this edition, we feature an entire section dedicated to COP28 where we share insights and intelligence through conversations we have had with leading experts from across the region. This includes articles and podcasts that delve into the most pertinent topics, such as COP28’s call to action for corporates, ESG reporting, and the UAE’s Net Zero vision.
Beyond the focus on Energy and Climate we feature articles covering important updates that look into a variety of areas, such as UAE consumer protection law, an overview of the Federal Civil Family Law for Non-Muslim Foreigners in the UAE, and from Kuwait we discuss the management of companies. As always, in our final section we continue to share with you real life judgements that provide context to the legal landscape in the region.Read the full edition
Iraq has recently announced the Social Security Law No. 18 of 2023 (“New Law“), which has been officially published in Gazette No. 4734 on August 28, 2023. This pivotal piece of legislation is set to come into effect on December 1, 2023, effectively replacing the former Social Security Law No. 39 of 1971 (“Old Law“).
Here are the key highlights and changes introduced by the New Law:
PSSD Contribution Rate: The monthly PSSD contribution rate remains unchanged at 17% of the salary amount, with employees contributing 5% and employers contributing 12%. This rate is consistent with the provisions of the Old Law. Employers are still obligated to remit this contribution to the Ministry of Labour – Social Security Authority (MLSA) on behalf of their employees.
Delay Fines: A revised delay fine structure, imposing a 1% fine of the contribution amount for delays occurring after 120 days from the following month of the contribution due date.
Penalties for Non-Compliance: Fines ranging from 1,000,000 IQD to 5,000,000 IQD for non-compliance, in addition to requiring payment of five times the due contribution amount.
Retirement Age: The New Law introduces updated retirement age criteria: For men, retirement age varies from 50 to 63 years, depending on years of service. For women, retirement age ranges from 50 to 58 years, also based on years of service.
Foreign Employees Fees: Employers must pay 2,000,000 IQD for each foreign employee entering Iraq and an additional 750,000 IQD after adjusting the foreign employee’s legal status.
In light of these significant legislative changes, we strongly recommend that you undertake a comprehensive review of your existing practices and policies to ensure full compliance with the New Law ahead of its enforcement date on December 1, 2023.
As the leading law firm in the Middle East & North Africa Region, we are well-versed in these substantial legal developments. Our team of experts is readily available to assist you in navigating this transition smoothly, ensuring your organisation is adequately prepared and fully compliant with the New Law.