- Country Guide
- Iraq
Iraq
Last Update by Katie, 07 Aug 2024
You must log in to be able to download this document
Exchange Rate
18 Sep 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, in Arabic or Kurdish. If contracts are written, 3 copies are made and signed by the employer and staff. One copy is sent to staff and one to the Labour department
Payroll Currency
IQD
Probation
Typical practice: 1 -3 months and cannot be renewed
Contract Period
No minimum duration
Termination
-
Notice during probation for employers:
- 7 days -
Voluntary resignation:
- 30 days notice -
Involuntary termination
- 30 days' written notice (except for gross misconduct) -
Severance:
- 2 weeks wage for every completed year's service
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 |
21 working days 30 working days |
All staff with 1 year service All staff working in hazardous environments |
| Sick Leave |
30 working days per year of service A maximum of 180 can be accrued |
All staff covered by insurance |
| Maternity Leave | 14 weeks | All expectant mothers |
| Other leave |
Marriage: Up to 5 days Children's marriage: 1 day Bereavement: up to 5 days Widowed staff: 130 days Hajj (pilgrimage): One time leave |
All staff |
Reference
- https://www.numbeo.com/cost-of-living/in/Baghdad
- https://iq.opensooq.com/en/baghdad/real-estate-for-rent/apartments-for-rent/3-bedrooms
- https://ogletree.com/international-employment-update/articles/october-2018/iraq/2018-09-26/increase-in-minimum-salary/
- https://taxsummaries.pwc.com/iraq/individual/taxes-on-personal-income
- https://www.lloydsbanktrade.com/en/market-potential/iraq/taxes
- https://www.airswift.com/hiring-guide/iraq
- https://www.nrc.no/globalassets/pdf/guidelines/guide-to-employment-rights/federal-iraq-employment-rights-guide---english.pdf
Ready To Expand in Iraq?
Have any questions? We’d love to hear from you
Contact UsCountry Guide - Iraq
Last updated: 07 Aug 2024
Exchange Rate
Currency (IQD)
- 1 CNY = 0.185 IQD
- 1 USD = 1.32 IQD
Other currencies can be retrieved via the country guide link above.
Find us on WeChat
Labor Cost Calculator
To know the total employer cost for hiring a staff with certain salary, please go to our main site: https://marcopayroll.com
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
Fixed-Term
Used for project-based work or to fill positions for staff who are absent due to illness or that are on maternity leave and for casual work
Probation
Typical practice: 1 -3 months and cannot be renewed
Termination
-
Notice during probation for employers:
- 7 days -
Voluntary resignation:
- 30 days notice -
Involuntary termination
- 30 days -
Severance:
- 2 weeks wage for every completed year's service
Permanent
Probation
Typical practice: 1 -3 months and cannot be renewed
Termination
-
Notice during probation for employers:
- 7 days -
Voluntary resignation:
- 30 days notice -
Involuntary termination
- 30 days' written notice (except for gross misconduct) -
Severance:
- 2 weeks wage for every completed year's service
Public Holiday
19 days
2024
| Date | Name |
|---|---|
2025
| Date | Name |
|---|---|
Leave
| Leave Type | Entitlement | Notes |
|---|---|---|
| Annual Leave |
21 working days 30 working days |
All staff with 1 year service All staff working in hazardous environments |
| Sick Leave |
30 working days per year of service A maximum of 180 can be accrued |
All staff covered by insurance |
| Maternity Leave | 14 weeks | All expectant mothers |
| Other leave |
Marriage: Up to 5 days Children's marriage: 1 day Bereavement: up to 5 days Widowed staff: 130 days Hajj (pilgrimage): One time leave |
All staff |
Reference
- https://www.numbeo.com/cost-of-living/in/Baghdad
- https://iq.opensooq.com/en/baghdad/real-estate-for-rent/apartments-for-rent/3-bedrooms
- https://ogletree.com/international-employment-update/articles/october-2018/iraq/2018-09-26/increase-in-minimum-salary/
- https://taxsummaries.pwc.com/iraq/individual/taxes-on-personal-income
- https://www.lloydsbanktrade.com/en/market-potential/iraq/taxes
- https://www.airswift.com/hiring-guide/iraq
- https://www.nrc.no/globalassets/pdf/guidelines/guide-to-employment-rights/federal-iraq-employment-rights-guide---english.pdf
Contact Info
-
Singapore (Headquarters)
8 Marina Boulevard, MBFC Tower 1, #11-01, Singapore, 018981
+65 6653 4334 -
China (Headquarters)
79 Jianguo Road, China Central Place Tower 2, #09-52, Beijing, 100025
+86 10 6580 0555 -
China (Service Center)
23 Dagong Street, Eton Place Tower 2, Unit 1808, Dalian, 116001
-
United States
445 S Figueroa St, 31st Floor, Los Angeles, California, 90071
-
United Kingdom
71 - 75 Shelton Street, London, England GB
-
Netherlands
Vijzelstraat 68, 1017 HL, Amsterdam
-
Australia
Level 22, Salesforce Tower, 180 George Street, Sydney, NSW 2000