Expand your global workforce in Iraq
Your guide to the employment landscape, working customs and local labor laws in Iraq
Capital
Baghdad
Currency
Iraqi Dinar (IQD)
Languages
Arabic and Kurdish
GDP per Capita
$6,247.25
Employer Tax
12%
Payroll Frequency
Monthly
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.
Major economic hubs:
Baghdad, Basrah, Al Mawsil Al Jadidah, Al Basrah Al Quadimah
Skills in demand:
Finance, Supply Chain, Marketing, Production, English Language Training
Iraq
Top local universities in Iraq
University of Babylon
Ranking:
Local: 1
World: 4418
University of Baghdad
Ranking:
Local: 2
World: 5277
University of Kufa
Ranking:
Local: 3
World: 5700
University of Mosul
Ranking:
Local: 4
World: 5892
University of Mustansiyrah
Ranking:
Local: 5
World: 5933
Top Local Job Boards:
Number of LinkedIn users:
1,876,000
Top Recruitment Agencies:
Where to find talent
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
Top Recruitment Agencies:
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 |
Employ in Iraq
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.
Probation
The probation period for Iraqi employees is up to three months.
Public and Provincial Holidays
| Date | Name | Type |
| January 1 | New Year’s Day | National Holiday |
| January 6 | Army Day | National Holiday |
| March 5 | Rebellion Anniversary | |
| March 6 | National Day of Tolerance and Coexistence | National Holiday |
| March 11 | Anniversary of Signing of the March 11, 1970 Agreement | Local Holiday |
| March 14 | Birth Anniversary of the Immortal Barzani | Local Holiday |
| March 21 | Nowruz | National Holiday |
| March 22 | Nowruz Holiday | Local Holiday |
| March 23 | Nowruz Holiday | Local Holiday |
| March 30 | Eid al-Fitr | National Holiday |
| March 31 | Eid al-Fitr holiday | National Holiday |
| April 1 | Eid al-Fitr holiday | National Holiday |
| April 2 | Yazidi New Year | Local Holiday |
| April 9 | Fall of the Defunct Dictatorial Regime and the Liberation of Iraq Day | Local Holiday |
| April 9 | Baghdad Liberation Day | Local Holiday |
| May 1 | Labor Day | National Holiday |
| June 6 | Eid al-Adha | National Holiday |
| June 7 | Eid al-Adha holiday | National Holiday |
| June 8 | Eid al-Adha holiday | National Holiday |
| June 9 | Eid al-Adha holiday | National Holiday |
| June 14 | Eid al-Ghadeer | National Holiday |
| June 26 | Islamic New Year | National Holiday |
| July 5 | Ashura | National Holiday |
| July 14 | Republic Day | National Holiday |
| September 4 | The Prophet’s Birthday | National Holiday |
| October 3 | Iraqi Independence Day | National Holiday |
| December 10 | Anniversary of Victory over ISIS | National Holiday |
| December 25 | Christmas Day | National Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 21 days | Yes |
| Sick Leave | 30 days | Yes |
| Maternity Leave | 14 weeks | Yes |
Leave Compliance
Public and Provincial Holidays
Payroll in Iraq
Payroll cycle
Payroll in Iraq is released on a monthly basis.
Minimum wage
The minimum wage in Iraq varies from IQD 450,000 per month and Iraqi Kurdistan is IQD 280,000.
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.
How taxes work
Employer Payroll Tax:
| Fund | Contribution |
| Social Security | 12% |
Employee Payroll Tax:
| FundTax Type | Contribution |
| Social Security | 5% |
Employee Income Tax:
Income of resident taxpayers 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% |
VAT:
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.
Bonus
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
Employee offboarding
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 employment permit in Iraq.
Your employment toolkit for Iraq
Expand into
150+ countries
Expand globally and hire talent in 150+ countries without having to set up an entity. Use Multiplier's Employer of Record to manage the complete employee experience while having the flexibility to enter new markets.
Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration