Image Source: Wikimedia Commons / Public Domain
1. Country Overview
Iraq is an energy-rich Middle Eastern economy undergoing major reconstruction, infrastructure modernization, and expanding commercial trade.
2. Geography
Located in Western Asia spanning the Tigris and Euphrates river basins, bordered by Turkey, Iran, Kuwait, Saudi Arabia, Jordan, and Syria.
3. Culture & Languages
Hospitality-driven Arab-Kurdish business culture. Standard workweek runs Sunday through Thursday.
4. History
Historic cradle of civilization (Mesopotamia); federal parliamentary republic since 2005.
5. Labour & Employment Law History
Governed by Labour Law No. 37 of 2015 in federal Iraq and Regional Labour Law in the Kurdistan Region of Iraq (KRI).
6. Currency, Capital & Key Facts
7. Employment Snapshot
Standard workweek is 48 hours (8 hours daily across 6 days, or 40 hours in office roles). Written contracts must be registered with the Ministry of Labour and Social Affairs (MOLSA).
8. Payroll & Tax
Progressive personal income tax (up to 15%). Social Security contributions to the Pension and Social Security Directorate: employer pays 12%, employee pays 5%.
9. Benefits & Leave
Minimum 20 working days of paid annual vacation (increasing to 30 days after 5 years service), plus 14 official public holidays.
10. Contractors & Worker Classification
Strict labor nationalization quotas; independent contractors must be registered taxpayers.
11. Immigration & Work Permits
Expatriates require an employment visa and work authorization approved by MOLSA.
12. Employer of Record (EOR) & PEO Capabilities
EOR services operate through licensed local partner entities in Baghdad and Erbil for compliant IQD payroll and MOLSA filings.
13. Matched Verified Providers for Iraq
Providers below are cross-referenced with EOR.one's global provider intelligence registry:
14. Related Global Expansion Services
15. Official Sources Reviewed
- Iraq Ministry of Labour & Employment / Official Gazette ↗ Government / Regulatory Authority · Accessed 2026-09-01
- International Labour Organization (ILO) — Iraq Country Profile ↗ International Organization · Accessed 2026-09-01
- The World Bank Group — Iraq Economic & Labour Market Data ↗ Global Development Institution · Accessed 2026-09-01
- National Statistical Authority & Tax Administration of Iraq ↗ Official Statistics / Tax Authority · Accessed 2026-09-01
16–18. Next Steps for Hiring in Iraq
Choose the appropriate route for your hiring requirements in Iraq: