What you'll learn
- Country Introduction
- Tax Breakdown for Employers
- Statutory Leave Laws
- Minimum Wage and Working Hours
- Termination Process
- Additional Information
Iraq is a country in the Middle East region bordered by Turkey, Iran, Kuwait, Saudi Arabia, Jordan, and Syria. Iraq’s economy is driven by the oil sector, and the country is taking steps to facilitate an entrepreneurial atmosphere and make it easier to do business there.
Paid Leave and Statutory Leave
Parental Leave
Pregnant employees in Iraq can take a minimum of 72 days of paid maternity leave. While there is no provision for paternity leave, either parent can take 3 days of unpaid leave each year to care for a child under the age of 6.
Sick Leave
Employees can take up to 30 days of paid sick leave each year, as long as they can show medical proof. Employees are able to take another 180 days if still sick that are covered by social security.
Paid Leave
Iraq has 14 public holidays, and employees can take at least 20 days of paid time off each year that are accrued each month. Employees can also request leave for bereavement, marriage, and a few others.
Wage Requirements and Working Hours
Te minimum wage in Iraq is around IQD 518,000 per month, with a workweek of 40 hours per week (maximum of 48 per week). Employees must be granted at least 24 hours per week for rest. Overtime is paid at 150%-200% of the regular salary, and has a maximum of 120 hours per year.
Termination Process
Process
Employers can terminate an employment contract for reasons of resignation, mutual agreement, contract expiration, extensive illness, company closure.
Notice Period
The notice period for termination is at least 30 days, with notice in writing. Employees can resign as long as they provide 30 days notice as well (if an employee resigns without notice they might have to pay the employer a monetary equivalent of the notice period).
Severance Pay
Severance pay is usually calculated as 2 weeks of wages for each year of service.
Additional Information
N/A
★ 12% - Social Security
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Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.
