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Iraq - Minimum Wages - 2011


LAST UPDATE

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SOURCES


Name of Act

Act No. 71 of 1987 promulgating the Labour Code, as amended with the Law No. 17 of 2000 from the Revolutionary Council introducing the second amendment and up to the Coalition Provisional Authority Order No.89.
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Other source used

Iraq’s Human Rights Report 2010 of the U.S. Department of State

LEGAL DEFINITIONS


Employee/worker

Worker means any person who performs work in return for wages, in the service of an employer and under the employer’s authority and supervision.
Labour Code §8

Employer

Employer means any individual or legal entity who employs one or more workers in return for wages.
Labour Code §8

Wage

The term "wages" means any amount, however calculated, which an employer engaging a worker owes to him in return for work performed.
Labour Code §41

Minimum wage

Minimum wage is the lowest rate of wages that the employer and the worker may agree and that shall not be lower than the wage for an unskilled worker.
Labour Code §47

MINIMUM WAGE FIXING


Procedure


Procedure in general

A committee responsible for proposing, at regular intervals, the minimum wage for an unskilled worker shall be established by an Order of the Minister of Labor and Social Affairs; the committee members shall be:
(a) the Director-General of the Labor Service, who shall chair the Committee;
(b) the Director-General of the Employees’ Social Security Scheme, member;
(c) a representative of the Confederation of Trade Unions, member;
(d) a representative of the Confederation of Iraqi Chambers of Commerce and Industry, member;
(e) a representative of the National Prices Office, member;
(f) two members chosen by the Minister of Labor and Social Affairs on the basis of their experience in and knowledge of various aspects of wage planning.
The Minister of Labor and Social Affairs shall submit the Committee’s proposals to the Council of Ministers for decision in this connection.
Labour Code §46

Criteria


Needs of workers and their families

Every worker shall earn a wage adequate to meet his essential needs and those of the worker’s family.
Labour Code §4

Cost of living

When determining the wages it shall be taken into account that the worker can retain a portion of his wages sufficient to enable him and his family to enjoy an acceptable standard of living.
Labour Code §4(3)

Level of wages and incomes in the country

When determining the wages it shall be taken into account the principle of equality of remuneration for the same type and the same quantity of work performed under identical circumstances.
Labour Code §4(2)

Economic development

Workers shall earn a wage in accordance to the results of economic progress.
Labour Code §4

Productivity

When determining the wages it shall be taken into account the type and amount of work performed by the worker, so that wages shall be linked to production.
Labour Code §4(1)

Coverage


Scope

The provisions of this Code apply to all workers employed in the private, mixed and co-operative sectors.
Labour Code §8(1)

Level


Minimum wage level(s) in national currency

The national minimum wage for a skilled worker was less than 12,000 dinars (approximately $10), per day and for an unskilled worker less than 5,250 dinars ($4.50) per day.
Iraq’s Human Rights Report 2010 of the U.S. Department of State

In-kind allowances

Wages shall be paid in Iraqi currency. Payment of wages in other currencies shall not release the employer from his or her obligations to the worker.

Bonuses and extra compensation shall count as wage supplements in the following cases:
(1) when they are provided for by law, work rules, or the contract of employment;
(2) when they have been granted over at least 3 years in a row and appear to be regular and general in application.

The percentage of sales or profits provided for in a contract of employment shall be deemed to be a wage supplement.
Labour Code §42(2),§43,§44

Rate of payment


» Monthly

A worker’s wages shall be paid once a month on a working day, at the workplace or in a nearby pay office.
Labour Code §42(1)

» Other

Wages may be fixed on a piece-rate basis or in accordance with any other system for determining the amount of the wage in relation to the worker’s production, as long as the wage rate does not fall below that of the minimum wage for an unskilled worker.
Labour Code §45

Scheduled frequency of adjustment

The minimum wage for unskilled workers shall be adjusted at regular intervals.
Labour Code §46(1)

Enforcement mechanisms


Labour inspection

Enterprises and other workplaces covered by the provisions of this Act shall be subject to labour inspection.
The labour inspectorate shall have the following powers:
(a) to verify the implementation of the present Act, the law on pensions and social security for workers and instructions and decisions issued pursuant to their provisions; to verify the observance of the terms of individual contracts of employment and to conduct inspections of any matters involving labour relations or the protection of workers.
(b) to provide information and technical advice to the parties to an employment relationship regarding the most effective means of observing the legal provisions.
Labour Code §114

Fines in national currency for non-respect of legislation

Any person or entity violating the provisions of this chapter, relative to wages, shall be guilty of an offense and on conviction shall be subject to a fine in anamount between six (6) times the daily minimum wage and six (6) times the monthly minimum wage per violation. If the violation concerns paying a wage that is lower than the minimum wage for an unskilled worker, the party shall be subject, in addition to paying the fine imposed, to pay the worker compensation in an amount that is two (2) times the difference between the wage paid and the minimum wage.
Labour Code §53

Other penalties

Any person who impedes the labor inspector or the inspection committee in entering the work premises for purposes of inspection or who interferes in any way with the fulfillment of the committee¿s activities shall be liable to a fine of from twelve (12) times the daily to twelve (12) times the monthly minimum wage, or to imprisonment ranging from one (1) month to six (6) months.
Labour Code §118

Results generated on: 18th April 2014 at 22:46:10.
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