- Country Guide
- Iraq
Iraq
Last Update by , 07 Aug 2024
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Exchange Rate
22 Jan 2025
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 | Army Day |
| 21 Mar | Nowruz |
| 30 Mar - 01 Apr | Eid al-Fitr |
| 09 Apr | Baghdad Liberation Day |
| 01 May | Labor Day |
| 07 Jun - 10 Jun | Eid al-Adha |
| 14 Jun | Eid al-Ghadeer |
| 26 Jun | Islamic New Year |
| 05 Jul | Ashura |
| 14 Jul | Republic Day |
| 05 Sep | The Prophet's Birthday |
| 03 Oct | Iraqi Independence Day |
| 10 Dec | Anniversary of Victory over ISIS |
| 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
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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.
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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
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