Iraq

Last Update by Katie, 07 Jun 2024

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Exchange Rate

13 Jun 2024

 

Cost of Living

Indicative value for a working adult in a city: Baghdad

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (IQD)
McDonalds Set Meal 7,000
Monthly Train and Bus Tickets 30,000
3 Bedrooms Rental (City Center) 1,250,000
3 Bedrooms Rental (Outskirt) 800,000

Current Inflation Rate

1%

Wage

Minimum Wages

  • The monthly minimum wage is 350,000 IQD, effective from 2018.

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (IQD)
Entry-Level
Fresh Graduate
1,200,000
Mid-Level
5 Years
2,100,000
Experienced & Managerial Level
10 Years
3,300,000
Specialized & Senior-Level
15 Years
4,500,000

Annual Salary Growth

4%

Statutory Contribution

Foreign workers can provide sufficient proof to the PSSO to get an exemption from social security contributions.

Country Level

Type Employer Rates Employee Rates Notes
Social Security and Pension (SSPC) 12%
25% for oil or gas business
5% All staff no maximum or minimum threshold

Other Benefit

Other common employment benefits in Iraq include:

Income Tax

Residents

  • Tax period: 1st January - 31st December
    Filing Due Date: 31st May
  • Residents are taxed on worldwide income, non-Iraqi nationals taxed on income generated in Iraq

Country Level

Taxable Income Rate
Up to 250,000 IQD 3%
250,000 - 500,000 IQD 5%
500,000 - 1,000,000 10%
Over 1,000,000 15%
Kurdistan Region 5% on income

Working Hours

Statutory

40 Hours
8 hours a day, 5 days a week (during Ramadan workdays reduced to 6 hours)

Typical practice

40 Hours
Sunday - Thursday (Weekend is Friday and Saturday)

Overtime

Up to 4 hours a day: 50% extra pay

Employment Contract

Permanent

Contract Format

Can be verbal or written.

Probation

Typical practice is 1 month, can be extended once, but cannot go over 3 months in total.

Termination

  • Notice during probation:
    - 7 days'
  • After probation for staff and employers:
    - 30 days' written notice
    - Except in cases of gross misconduct
  • Severance:
    - 2 weeks wage for every completed year

Public Holiday

19 days

Country Level

Date Name
01 Jan New Year's Day
06 Jan Armed Forces Day
06 Mar National Day of Tolerance and Coexistence
21 Mar Nowruz
10 Apr - 12 Apr Eid al-Fitr
01 May Labor Day
16 Jun - 19 Jun Eid al-Adha
07 Jul Islamic New Year's Day
14 Jul Republic Day
16 Jul Ashura
15 Sep Birth of the Prophet
03 Oct Independence Day
10 Dec Victory Day
25 Dec Christmas Day

Leave

Leave Type Entitlement Notes
Annual Leave 20 working days
30 working days
All staff with 1 year service
All staff working in hazardous environments
Sick Leave 30 working days per year
A maximum of 180 can be accrued
All staff covered by insurance
Maternity Leave 14 weeks All expectant mothers
Bereavement Leave Up to 5 working days per event All staff with death of a parent, spouse, spouse's parent, sibling, or child.
Marriage Leave Up to 5 working days All staff for the first marriage

Reference

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