🇮🇶 Iraq — SAP SF EC Cloud Payroll 6×6×6 Framework

Iraq — SAP SuccessFactors EC Cloud Payroll

6-Chapter Configuration & Curriculum Framework

Country Profile: Iraq | Module: PYIQ | Currency: IQD | Molga: 99
Key Statutory: Social Security Law No. 39 (1971), Income Tax Law No. 113 (1982), Iraqi Labour Law No. 37 (2015), No modern WPS but MOL reporting required

CHAPTER 1–6 — Configuration Framework

Key Configuration Items

  1. Currency IQD (large denomination); Molga 99; Friday–Saturday weekend
  1. Social Security: employee 5% + employer 12% of gross salary
  1. Income Tax: Iraqi progressive tax (3%–15% on taxable income bands)
  1. Personnel Areas: IQ01=Baghdad, IQ02=Basra, IQ03=Erbil, IQ04=Mosul, IQ05=Kirkuk, IQ06=Najaf
  1. Kurdistan Region (KRI): separate tax authority (KRI Tax Commission) — additional PA
  1. EOSB: Iraqi Labour Law calculation based on years of service

Wage Types

  1. Basic Salary (IQ01): basis for social security and tax
  1. Transport (IQ11), Food (IQ12), Danger/Hardship Allowances (IQ13) — common in oil sector
  1. Social Security Employee (IQ60): 5% of gross
  1. Social Security Employer (IQ61): 12% of gross
  1. Income Tax Wage Type (IQ70): progressive 3–15% on taxable income
  1. EOSB Provision (IQ50): per Labour Law Article 68

EC Integration

  1. National ID (NIN) → IT0185; Kurdish/Arab dual-identity handling
  1. Baghdad vs KRI tax routing: separate PCR for KRI Tax Commission
  1. Oil sector employees: hardship/danger allowances replication → IT0014
  1. MOL reporting: monthly headcount and payroll data for labour compliance
  1. Foreign worker permit → IT0185 expiry alert
  1. USD/IQD dual-currency contracts: configure conversion rate handling

PCC KPIs

  1. Social Security contribution accuracy: 5%+12% for all employees
  1. Income Tax progressive calculation accuracy per band
  1. KRI vs Baghdad tax authority routing validation
  1. IQD large-number handling (millions denomination) in payslip
  1. Oil sector: danger allowance entitlement validation
  1. MOL monthly reporting compliance

Testing & Go-Live

  1. Income Tax: test all bands (3%/5%/10%/15%) with boundary salary values
  1. Social Security: 5%+12%; verify IQD rounding on large numbers
  1. KRI employees: verify KRI Tax Commission PCR routing
  1. EOSB: Iraqi Labour Law calculation for various service years
  1. Oil sector: hardship allowance trigger conditions and amounts
  1. AMS: annual tax table update; social security rate monitoring