Policy Paper

Extending social security to wage workers in the manufacturing sector in Federal Iraq and the Kurdistan Region of Iraq

This policy paper explores options to extend social security coverage to wage workers in the manufacturing sector in Federal Iraq and the Kurdistan Region of Iraq. Despite being one of the largest private-sector employers, the sector is characterized by widespread informality: virtually all employees remain outside social security protection, even when working in formal businesses. The report proposes practical measures such as simplifying and digitalizing registration, strengthening labour inspection and enforcement, offering flexible contribution arrangements, and building trust through transparent governance, administration, and communication. By providing evidence-based recommendations, the paper supports Iraq’s efforts to reduce informality, improve income security, and advance the right to social protection in line with international labour standards.