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Iraq Employment Guide

Your quick guide on talent and labor compliance norms in Iraq




Iraqi Dinar (IQD)


Arabic and Kurdish

Payroll Frequency


GDP per Capita


Employer Tax


Talent Overview

Iraq is one of the easternmost nations in Asia. It is rich in petroleum reserves and is the world’s fourth-largest petroleum producer. The economy of Iraq is largely dominated by the oil sector, which provides around 92% of its foreign exchange earnings. Textile, chemicals, and leather are a few other industries that are prominent in Iraq. Iraq’s GDP fell sharply due to the Covid-19 pandemic. However, in 2021 and 2022, as oil prices surged, Iraq’s GDP witnessed a surplus of 8.3%, bringing it up to the 51st position in the global GDP rankings.

Major economic hubs:

Baghdad, Basrah, Al Mawsil Al Jadidah, Al Basrah Al Quadimah

Skills in demand:

Finance, Supply Chain, Marketing, Production, English Language Training

Map 21

Local Universities

The top local universities in Iraq are as follows:

Uni1 32

University of Babylon


Local: 1

World: 4418

Uni2 31

University of Baghdad


Local: 2

World: 5277

Uni3 32

University of Kufa


Local: 3

World: 5700

Uni4 31

University of Mosul


Local: 4

World: 5892

Uni5 30

University of Mustansiyrah


Local: 5

World: 5933

Salary Data

Job Title Average Monthly Salary (in IQD) Average Monthly Salary (in USD)
Financial Manager 4,100,000 3,132
General Manager 3,780,000 2,888
Business Development Manager 3,350,000 2,560
Financial Analyst 2,690,000 2,055
Business Analyst 2,770,000 2,116
Project Manager 2,470,000 1,887
Talentsource 61

Talent Sourcing Tips

Top Local Job Boards:

Bayt, HawaJobs, Tanqeeb

Number of LinkedIn users:


Top Recruitment Agencies:

MSelect Recruitment, RIRP, Haleema Enterprises

Employing in Iraq

The employer must know the employment laws, statutory benefits, and deductions to hire an individual from Iraq. The section below mentions all the necessary details the employer needs to know while hiring an individual from Iraq.

Employee Contract

Employment contracts in Iraq are required to be in Arabic. However, it can also be drafted in Kurdish for organizations in autonomous parts of Kurdistan.


The probation period for Iraqi employees is up to three months.

Public and Provincial Holidays

Date Name Type
1 Jan New Year’s Day National holiday
6 Jan Army Day National holiday
5 Mar Rebellion Anniversary Regional holiday
6 Mar National Day of Tolerance and Coexistence National holiday
11 Mar Anniversary of Signing of the March 11, 1970 Agreement Regional holiday
14 Mar Birth Anniversary of the Immortal Barzani Regional holiday
21 Mar Nowruz National holiday
22 Mar Nowruz Holiday Regional holiday
23 Mar Nowruz Holiday Regional holiday
3 Apr Yazidi New Year Regional holiday
9 Apr Baghdad Liberation Day Regional holiday
9 Apr Fall of the Defunct Dictatorial Regime and the Liberation of Iraq Day Regional holiday
10 Apr Eid al-Fitr (Tentative Date) National holiday
11 Apr Eid al-Fitr holiday (Tentative Date) National holiday
12 Apr Eid al-Fitr holiday (Tentative Date) National holiday
1 May Labor Day National holiday
16 Jun Eid al-Adha (Tentative Date) National holiday
17 Jun Eid al-Adha holiday (Tentative Date) National holiday
18 Jun Eid al-Adha holiday (Tentative Date) National holiday
19 Jun Eid al-Adha holiday (Tentative Date) National holiday
7 Jul Islamic New Year (Tentative Date) National holiday
14 Jul Republic Day National holiday
16 Jul Ashura (Tentative Date) National holiday
15 Sep The Prophet’s Birthday (Tentative Date) National holiday
3 Oct Iraqi Independence Day National holiday
10 Dec Anniversary of Victory over ISIS National holiday
25 Dec Christmas Day National holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 20 days Yes
Sick Leave 30 days Yes
Maternity Leave 62 days Yes


Payroll 1

Payroll Cycle

Payroll in Iraq is released on a monthly basis.

Payroll 2

Minimum Wage

The minimum wage in Iraq varies from IQD 250,000 to IQD 350,000.

Payroll 3

Overtime Pay

The standard working hours in Iraq are 8 hours per day and 48 hours per week. The overtime pay is set to 150% over base pay.


13th Month Pay:

There is no statutory law for the 13th-month pay in Iraq.

Employee Benefits:

  • Sick Leaves
  • Maternity Leave
  • Social Security

Fringe Benefits:

Employers can provide their employees with additional benefits upon mutual discussion. Some of these benefits may include

  • Transportation allowance
  • Mobile allowance
  • Meal Vouchers


Employer Payroll Tax:

Fund Contribution
Social Security 12%

Employee Payroll Tax:

FundTax Type Contribution
Social Security 5%

Employee Income Tax:

Income tax in Iraq ranges from 3% to 15%, depending on the annual income.

Annual Income Tax Rate (%)
0 – 250,000 3%
250,001  – 500,000 5%
500,001 – 1,000,000 10%
Above 1,000,000 15%


There is no VAT in Iraq; however, sales tax is levied on certain goods and services, and it ranges from 10% to 300%, depending on the nature of the goods.

Offboarding & Termination

Employment in Iraq can be terminated both by the employee and the employer. The employer can terminate the employment on substantial grounds. If the employment is terminated without any grounds, the employer must pay a severance to the employee. An employer may also terminate the contract during the probation period (three months), in this case, the notice given will be only seven days. If the employer/employee terminates the employment without a notice, then the other party will be entitled to compensation amounting to the salary of 30 days.

A 30-day notice is mandatory for both permanent employees and employees on probation.

Severance pay in Iraq is set to 2 weeks’ pay for every year of service.

Visa and Immigration

Non-Iraqi employees must obtain a work permit before being employed in Iraq. This permit is valid for one year at a time and can be renewed one month before the expiration date. Non-citizens must show proof of employment before applying for a work permit in Iraq.

Visa 62
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Minimum Wage

Overtime Pay

Visa & Immigration