Payroll Cycle

Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Iraq

Your quick guide on talent and labor compliance norms in Iraq
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Iraqi Dinar (IQD)
Arabic and Kurdish
Payroll Frequency
GDP per Capita
Employer Tax

Supplementary Guide for Employment and Expansion in Iraq

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 Langauge Training

Local Universities

The top local universities in Iraq are listed below:

University of Babylon


Local: 1

World : 3,681

University of Baghdad


Local: 2

World : 4,166

University of Technology


Local: 3

World : 5,653

University of Mosul


Local: 4

World : 569

University of Mustansiyrah


Local: 5

World : 626

Salary Data

No. Job Title Average Salary (in IQD) Average Salary (in USD)
1 Accounting Manager 3,050,000 IQD $2094.30
2 Graphic Designer 1,360,000 IQD $933.85
3 Business Development Manager 3,350,000 IQD $2272.64
4 Business Analyst 2,770,000 IQD $1879.17
5 IT Manager 3,600,000 IQD $2471.96

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. 

Probation Period

The probation period for Iraqi employees is up to one month.

Public and Provincial Holidays

Date Name Type
1st January New Year’s Day Public Holiday
6th January Armed Forces Day Public Holiday
5th March Rebellion Anniversary Provincial Holiday (Kurdistan)
6th March National Day of Tolerance and Coexistence Public Holiday
21st March Spring Day Public Holiday
9th April Baghdad Liberation Day Provincial Holiday (Kurdistan)
1st May Labor Day Public Holiday
2nd - 4th May Eid al Fitr Public Holiday
9th - 12th July Eid al Adha Public Holiday
14th July Republic Day Public Holiday
30th July Islamic New Year Public Holiday
8th August Ashura Public Holiday
3rd October National Day Public Holiday
8th October Prophet Muhammad’s Birthday Public Holiday
10th December Victory Day Public Holiday
25th December Christmas Day Public Holiday

Employee Leaves

Type of Leave Time Period Mandatory
Annual Leave 21 days Yes


Payroll Cycle:

Payroll in Iraq can be distributed either monthly, bi-weekly or semi-monthly depending on the employment contract.

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Minimum Wage:

The minimum wage in Iraq is set at 250,000 IQD per month.

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Overtime Pay:

Overtime pay in Iraq is set to 150% over base pay.

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Health Examination Clause


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
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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

Termination Process

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.

Notice Period

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

Severance Pay

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.

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