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Country hiring guide

Hiring in Iraq 🇮🇶

Young population with oil-dominated economy and a limited, largely public formal labour market. Employer on-costs run ~12% on top of gross salary. Here is what to know before your first Iraq hire.

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OverviewFacts & statsEmployer costsLeaveTermination
Capital cityBaghdad
CurrencyIraqi dinar (IQD)
LanguagesArabic and Kurdish (both official)
Population~45 million
Payroll frequencyMonthly; no statutory 13th salary
VAT standard rateNo VAT (selective sales taxes apply)
Employer burden*~12% of gross
TGTC flat EOR fee$499/mo · Tier B
Overview

Employing in Iraq

Employment in Iraq runs under its national labour code, which sets the floor for wages, working hours, leave, and notice. Here are the essentials before you make an offer.

Minimum wage

  • IQD 350,000/month (federal)
  • Kurdistan IQD 450,000/month

Payroll cycle & extra pay

  • Monthly payroll
  • No statutory 13th salary

Public holidays

  • ~14 national holidays

Onboarding & probation

  • Probation up to 3 months
  • Governed by Labour Law No. 37/2015
Employer costs

What you pay on top of salary

Employer on-costs in Iraq run ~12% of gross salary. Employers pay ~12% social security (higher in oil sector) covering pension and injury.

Employer contribution*Rate
Social security (employer)12% non-oil private sector
Social security (oil sector)~25%*
Employee share5% (for reference)

Passed through at cost

These statutory costs are paid at cost on top of TGTC's flat $499/mo fee, so you always see the real employer cost, not a marked-up percentage.

Employee-side taxes

Employees pay their own income tax and social-security share, withheld at source. Under an EOR, TGTC runs that payroll withholding for you.

Types of leave

Statutory leave in Iraq

Annual leave

  • 21 days paid per year

Maternity & parental leave

  • 14 weeks paid
  • Up to 9 months if complications*

Sick leave

  • 30 days full pay
  • Up to 180 days with insurance

Other leave

  • Pilgrimage (Hajj) leave
  • Marriage leave*
Employment termination

Ending employment in Iraq

Notice

  • 30 days (<5 yrs), 60 (5-10), 90 (10+)
  • 7 days during probation

Severance

  • Two weeks salary per year served

Probation

  • Up to 3 months
  • Short notice during probation

Contractor risk

  • Misclassification triggers social security dues, penalties

*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.

Hire in Iraq without setting up an entity

TGTC employs your hire in Iraq on a compliant local contract, runs payroll and benefits, and passes statutory costs through at cost. One invoice, flat $499 per month.

Get a Iraq quote