* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.

Capital City

Iraqi Dinar (ع.د)


AST (GMT +2)

Employment Cost


Annual Leave

20 days

In-demand Specialties*
Oil & Energy, Finance, Supply Chain

The Ultimate Guide to Hiring Employees in Iraq

Simplify hiring employees in by partnering with Playroll. Our Employer of Record (EOR) handles hiring, onboarding, payroll, taxes, immigration, benefits administration, and compliance. While you maintain control of day-to-day tasks and responsibilities.


Key Considerations Before Hiring In Iraq

Employing in Iraq requires employers to own a legal entity in the country and manage payroll, tax, benefits and compliance through their own in-country resources. Grow your team in Iraq with our Employer of Record solution, ensuring streamlined, compliant business expansion with no entity.

Playroll allows you to hire employee's in Iraq quickly, easily and we even automate tax document collection, benefits, payroll and more.

Good To Know

Iraq's economy heavily relies on its oil sector, which contributes around 92% to its foreign exchange earnings. This dependence on oil underscores the nation's abundant pool of oil and energy experts and professionals.

Arabic serves as the primary language in Iraq, facilitating seamless integration with Middle Eastern companies. Additionally, Iraq's GMT +3 time zone adds to its convenience for regional collaboration.

Notably, Iraq also has a big population of English speakers: roughly 11 million people, representing around 35% of the country.

Iraq is home to some of the world's oldest civilizations, with a history that includes the ancient Mesopotamian civilizations. Its often referred to as the "Cradle of Civilization" due to its rich historical significance and contributions to human development.


Fundamental Aspects of Employment in Iraq

In Iraq, employment contracts must be in Arabic. However, in autonomous areas of Kurdistan, contracts can be drafted in Kurdish. It is common practice for contracts to include:

  • Identification of both parties
  • Commencement date
  • Job duties and responsibilities
  • Location of job

Probationary Period in Iraq

Iraqi Employers can hire employees on probation for up to three months.

Working hours in Iraq

In Iraq, regular working hours are 48 hours per week. Employees can work eight hours a day for six days each week.

Overtime in Iraq

Working hours may be increased in some cases. The increase is treated as overtime, for which the wage must be increased by 50% to 100%, depending on the type and nature of the work.

Navigating Key Aspects of Payroll in Iraq

Iraq has a robust and complex payroll and tax system, and as an employer, it pays to understand payroll process basics.

January 1st - December 31st

Fiscal Year in Iraq

January 1st - December 31st is the 12-month accounting period that businesses in Iraq use for financial and tax reporting purposes.

Payroll Cycle in Iraq

The payroll cycle in Iraq is usually Monthly, with employees being paid by the last day of the month.
1,302 IQD p/h

Minimum Wage in Iraq

The minimum wage for employees in Iraq is typically 1,302 IQD per hour, amounting to ~ 250,000 IQD per month for a typical 48 hour work week.

Minimum wages and salaries in Iraq

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

Bonus Payments in Iraq

There is no mandatory law for a 13th-month salary payment in Iraq.

Comprehensive Overview of Employment Taxes in Iraq

Understanding the tax obligations for both employers and employees is crucial when operating in Iraq's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Iraq.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 12% on top of the employee salary in Iraq.

Tax Rate Tax Type

Employee Payroll Tax Contributions

In Iraq, the typical estimation for employee payroll contributions cost is around 5%.

Tax Rate Tax Type

Individual Payroll Tax Contributions

Iraq operates a progressive income tax rate, ranging from 3% to 15%. Individual income tax is calculated based on annual income brackets.

Tax Rate Income Bracket

Pension in Iraq

Pension in Iraq is funded by social security contributions.

The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Iraq tailored to your needs.

Easily navigate payroll, taxes and contributions with Playroll.

Grow your distributed workforce today!

Understanding the Protocols for Termination of Employment in Iraq

When it comes to terminating employment in Iraq, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

In Iraq, employment can be terminated by both the employer and the employee. The employer can terminate based on substantial grounds or must pay severance if termination occurs without grounds.

Notice Period

A 30-day notice is mandatory for permanent employees. For termination during probation, at least seven days notice must be provided. Failing to do so would result in the employer compensating the employee with wages equivalent to the notice period.

Severance Pay

In Iraq, severance pay is typically two weeks' salary for each year of service. An employee is entitled to this end-of-service gratuity, except in specific cases such as:

  • Employee sentenced to over one-year imprisonment by court judgment
  • Employees using false identities or forged documents
  • Employee breaching contractual obligations
  • An employee making a severe error causing significant damage to work, workers, or production

Annual Leave Entitlements and Company Policies in Iraq

The annual leave entitlement in Iraq is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays in Iraq

There are 14 recognised national holidays in Iraq:

Holiday Date

Paid Time Off in Iraq

Maternity Leave in Iraq

Paternity Leave in Iraq

Sick Leave in Iraq

Parental Leave In Iraq

Iraq's Benefits Built Into Playroll

Competitive benefits package in Iraq

Playroll is committed to providing tailored, competitive benefits packages that are designed not only to attract but also retain top talent worldwide. Our global team of benefits experts build custom local packages to ensure your employees in Iraq's needs are met. Typically our packages contain some or all of the following benefits.

Health Insurance
Pension or 401k
Life and Disability Insurance
Vision Insurance
Dental Insurance
Discounts & Perks

Playroll Supplementary Benefits For Employment In Iraq

Make your benefits package in Iraq a talent magnet with Playroll's local plans. We offer benefits that are compliant, comprehensive, and flexible — all at competitive rates. Speak with our local territory experts to explore the localized benefits we can offer you, while you scale your team.

  • Health Insurance
  • Long-Term/Disability Insurance
  • Death Benefit
  • Workman's Compensation
  • Background Checks
  • IT Equipment Sourcing

Statutory benefits for employment in Iraq

Iraqi employees receive social security benefits, including:

Playroll allows you to provide localized benefits for employees in Iraq within minutes. All in one manageable online dashboard. If you'd like specific information about our benefits packages in Iraq create an account or contact our global expansion team, today.

Playroll Benefit Services

Playroll's Expertise in Facilitating Work Visas for Iraq

At Playroll we're all about empowering employees to work anywhere, making mobility possible for global teams. We sponsor visas and hire the employee for you, so you don’t have to worry about payroll, taxes, and more.

It's important to note, visa support can be complicated. There are many variables that affect whether sponsorship is possible, including one’s nationality, education, marital status, and the immigration policy for the country in question.

Unfortunately, this means we can’t support visas everywhere - with that being said, we handle the entire visa process in-house, and dig into your situation to give you an overview of what to expect if we're able to help with visa sponsorship in Iraq.

Playroll Immigration Support

Integrated EOR Platform

Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.

Accelerated Immigration Timeline

By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.

Hire in 50+ Countries

Accelerated Immigration Timeline

Acquiring a visa without an entity has never been easier, leverage Playroll's global coverage to sponsor and hire employees.

Playroll Visa Services

Hiring International Employees is Complex.

Playroll makes it easy!