BACKGROUND
Informal employment is a significant challenge in both Iraq and the Kurdistan Region of Iraq (KRI). According to the 2021 Labour Force Survey (LFS), approximately two-thirds of Iraq’s workforce, totaling 5,734,000 workers, is engaged in informal employment. In KRI, 65.4% of the total workforce, or 934,400 individuals, is similarly employed informally, reflecting a nearly identical trend to the national situation where informal employment accounts for 66.6% of the workforce.
The informal sector employs 4,723,000 workers in Iraq, or 54.8% of total employment, compared to 521,400 workers (36.5%) in KRI. This suggests a relatively smaller informal sector in KRI than in Iraq as a whole. However, informal employment within the formal sector is particularly concerning. In Iraq, 1,011,000 formal sector workers are employed informally, while KRI’s formal sector has 410,900 workers in informal employment—28.8% of total formal sector employment in KRI. This is notably higher than Iraq’s national average of 11.8%, highlighting a gap in protections and benefits for workers in the formal sector.
To address this the International Labour Organization (ILO), in collaboration with the Ministry of Labour and Social Affairs (MoLSA) in the Kurdistan Region of Iraq (KRI), has been leading efforts to extend social security coverage and promote formalization across priority sectors. This initiative has involved forming a Technical Working Group (TWG), conducting data collection, engaging key stakeholders, and identifying major corporations to enhance social security registration. To consolidate and document these efforts, a consultant is required to compile a comprehensive write up for the strategy.
ASSIGNMENT OBJECTIVES
The primary objective of this consultancy is to develop a structured strategy document that outlines a clear vision and pathway for formalization and the extension of social security in the Kurdistan Region of Iraq (KRI). This strategy should:
• Be grounded in existing data and evidence.
• Align with national development priorities and socio-economic frameworks (e.g., employment, labour market policies, and social protection).
• Serve as a reference framework for decision-makers to guide future programming, advocacy, and coordination.
• Include a clear narrative on the rationale for the extension of social security to the informal sector and enhancing effective coverage and participation in the context of progressive transition to formality;
• Articulate a theory of change, strategic goals, objectives, high-level targets, and possible pillars or areas of intervention should be articulated.
SCOPE OF WORK
1. Review and Analysis of Existing Materials
• Review background materials of the Technical Working Group (TWG) on formalization and social security and data (administrative, statistical, etc) provided by the Department of Social Security.
• Analyze sector-specific documentation, findings, and evidence.
• Identify contextual opportunities, bottlenecks, and gaps.
• Map and assess relevant laws, regulations, and institutional mandates related to formalization and social protection in KRI, identify gaps and opportunities.
• Review relevant global and regional good practices in the expansion of social security to the informal sector and ensuring effective participation as a driver for progressive transition to formality, for contextual adaptation.
2. Stakeholder Engagement
• Conduct structured interviews and focus group discussions with MoLSA officials, employers’ and workers’ representatives, informal sector actors (both workers and employers), and development partners.
• Facilitate two technical validation sessions (virtual or/and in-person) to gather feedback and strengthen ownership of the strategy.
3. Development of the Strategy Document
The consultant will produce a strategy document, not just a compilation report. This should include:
• Executive Summary
• Background and Justification
• Theory of Change or Conceptual Framework (if applicable)
• Strategic Goals and Objectives
• Strategic Pillars/Areas of Intervention
• Short Summary of Sectoral Bottlenecks, Good Practices, and Opportunities
• Suggested Actions and Direction (e.g., indicative measures, not detailed activities or policy recommendations)
4. Translation and Formatting
• The final strategy document should be professionally formatted for publication and translated into Kurdish, Arabic, and English.
DELIVERABLES
The consultant is expected to submit the following deliverables:
• Inception report in English;
• First draft of the social security and formalization strategy in English;
• Final (publishable) version of the social security and formalization strategy with the feedback incorporated in English, Sorani and Arabic.
DURATION OF ASSIGNMENT
The assignment will run from 25 June 2025 to 30 November 2025, covering a total of 60 working days.
SHEDULE OF PAYMENTS
Payments will be released according to the schedule below, subject to the acceptance and approval of deliverables by the ILO.
Payment Percentage Deliverables Tentative Deadline
First Payment 12 Working Days Inception report in English Mid-July 2025
Second Payment 30 Working Day First draft of the social security and
formalization strategy in English Mid-September
2025
Final Payment 18 working Days Final (publishable) version of the social security and formalization strategy with the feedback incorporated in English, Sorani and
Arabic. End November 2025
SELECTION CRITERIA: QUALIFICATION AND EXPERTISE
The consultant should meet the following qualifications and possess the necessary expertise:
• Advanced university degree in social policy or social protection, political or social science, economics, development studies, or other related field.
• Proven experience in supporting the development of social security, labour market, employment or formalization policies, strategies or other programmatic documents in Iraq or in the Arab States.
• Demonstrated ability to conduct in-depth desk reviews, synthesize complex information, identify key patterns and gaps, and translate evidence into actionable insights.
• Proven track record in drafting high-quality policy and strategy documents, with strong structuring, argumentation, and clarity of expression
• Experience conducting stakeholder consultations and facilitating strategy validation processes.
• Previous experience working national and international stakeholders, including with the UN agencies, particularly the ILO, government institutions, workers’ and employers’ organization and others.
• Fluency in English is required; proficiency in Kurdish and some command of Arabic is an advantage.
• Due to the specific nature of the assignment, the consultant should be based in Erbil or Kurdistan region of Iraq, otherwise will not be considered.
Note: This consultancy is opened for national (Iraqi) applicants and international (non-Iraqi) applicants, already based in Erbil or Kurdistan region of Iraq.
SUPERVISION
The consultant will conduct the assignment under the overall supervision of the Chief Technical Advisor on Social Security and in close coordination with the National Social Protection Progamme Officer based in Erbil and in close collaboration with MoLSA and other key stakeholders.
APPLICATION PROCESS
Interested candidates should submit:
• A CV highlighting relevant experience.
• A short methodology (5 pages maximum) detailing their approach to the assignment. This should include: the consultant’s understanding of the assignment’s objectives and context; proposed analytical framework and data sources; and the proposed tools or methods for synthesizing information and structuring the strategy document. The methodology should also indicate how the consultant will ensure inclusivity, relevance, and government’s ownership of the proposed strategy.
• A tentative timeline outlining the proposed plan for conducting the work, including the review of background materials, stakeholder engagement, key points for interactions and feedback and the drafting process
• At least one sample of a comparable strategic or analytical document authored by the consultant.
• A financial proposal outlining the consultant’s fees.
EVALUATION PROCESS AND CRITERIA
Proposals will be reviewed and evaluated by an Evaluation Panel, to determine compliance with the requirements in the TORs.
A two-stage procedure will be utilized in evaluating the Proposals, with evaluation of each Technical Proposal constituting 70 points of the total grade being completed prior to any Financial Offer which constitute 30 points of the total grade being opened and compared.
TECHNICAL PROPOSAL
Each Technical Proposal is evaluated on the basis of its responsiveness to the Terms of Reference (TOR).
The technical proposals will be evaluated according to the criteria described below. The maximum score is 70 points, the minimum passing score is 50 points:
30 points maximum The proposed methodology (max. 5 pages) will be assessed based on the consultant’s understanding of the assignment, the suitability of the analytical framework and data sources, the appropriateness of tools and methods for structuring the strategy, and the extent to which it ensures inclusivity, relevance, and government ownership; in addition, it should demonstrate alignment with the Terms of Reference, include effective stakeholder mapping, and clearly identify risks, challenges, and opportunities.
20 points maximum Relevance of consultant’s education, qualifications and experience, including experience at the international level and in similar consultancies;
10 points maximum The proposed workplan is clear and feasible (including background review, stakeholder engagement, and drafting), ensures regularity of interactions with stakeholders while not overloading them;
10 points maximum The provided sample of a comparable strategic or analytical document authored by the consultant demonstrates a high level of quality, showcasing strong analytical skills, clear structure and articulation of ideas, relevance to the assignment’s subject matter, and the ability to present complex information in a coherent and accessible manner.
The technical proposals must be submitted in English.
FINACIAL PROPOSAL
During the second stage of the evaluation, the Financial Offers (30 points) of all Bidders which have attained at least the minimum score (50 points) during the technical evaluation will be compared. The maximum number of points – 30 points – will be assigned to the lowest Financial Proposal submitted by applicants. All other Financial Proposals will receive points in inverse proportion.
• A financial proposal for conducting this assignment, based on a total of 60 working days, should be submitted in USD or IQD1 as per the table below.
• Proposed daily fees should exclude transportation and daily allowances.
• All transportation within Erbil governorate is under the responsibility of the consultant and it would not be compensated by the ILO.
• If travel is required outside Erbil governorate (within Iraq) and is requested by the ILO and/or agreed with the ILO as being critical for the successful completion of the assignment, transportation costs and daily subsistence
1 As per June 2025 official ILO exchange rate, 1 USD = 1,310 I
allowances will be covered by the agreement as per UN regulations and standards. Once dates are known, ILO will be estimating the amount and will be sharing it.
• In case if international flight is applicable, Daily Substantial Allowances, Costs of flight and VISA will be compensated by ILO and in accordance to UN rules and regulations
• Additional costs should NOT include the cost to validation workshops and/or larger scale meetings. The financial proposal template includes the table below:
Deliverables Estimated Number of Working Days (60 working days in total) Daily Rate (USD or IQD) Total Daily Rate (USD or IQD)
Deliverable 1: Inception report 12
Deliverable 2: First draft of the social security and formalization strategy in English 30
Deliverable 3: Final (publishable) version of the social security and formalization strategy with the feedback incorporated in English, Sorani and Arabic. 18
TOTAL Working Days 60
UNGM Link: Documentation of Formalization and Social Security Extension in the Kurdistan Region of Iraq (KRI)
How to Apply:
Please submit the following by 10th of June 2025 at 17:00 Baghdad time to (iraq-procurement@ilo.org)
Please indicate the title of the consultancy in the subject of the email: RFQ-023-25: Documentation of Formalization and Social Security Extension in KRI
Required Submissions:
• A CV highlighting relevant experience.
• A short methodology (5 pages maximum) detailing their approach to the assignment. This should include: the consultant’s understanding of the assignment’s objectives and context; proposed analytical framework and data sources; and the proposed tools or methods for synthesizing information and structuring the strategy document. The methodology should also indicate how the consultant will ensure inclusivity, relevance, and government’s ownership of the proposed strategy.
• A tentative timeline outlining the proposed plan for conducting the work, including the review of background materials, stakeholder engagement, key points for interactions and feedback and the drafting process
• At least one sample of a comparable strategic or analytical document authored by the consultant.
• A financial proposal as per the above template.
