Arabia Standard Time (UTC+03:00)

Undoubtedly, payroll is a critical process for any organization. The pay cycle in Iraq refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

In Iraq, employees get paid on a monthly basis.

13th and 14th month salaries are not a statutory requirement.

The minimum wage in Iraq is IQD 350,000 (approximately $293.29).

Overtime is generally limited to four hours per day for non-industrial work or one hour per day for industrial work, subject to maximums of 40 hours in a 90-day period and 120 hours in a one-year period.

Overtime worked during a normal working day (work performed beyond eight hours) is to be remunerated at one and a half times the normal rate of pay. Work done at night, on a weekly rest day, or on a holiday must be remunerated at twice the amount of normal pay. Employees working on a rest day or a holiday are to be given another rest day during the week to replace it.

Tax records must generally be kept for a minimum of five years. Employment records regarding workers' wages, deductions, and overtime must be maintained; however, no guidance is provided on the length of time such records must be kept.

All documents must be kept in Arabic except in the region of Kurdistan, where documents can be kept in Kurdish languages.

Both Law 37/2015 (the Iraqi Labour Law, which governs employment relationships in most of Iraq) and Law 71/1987 (the Kurdish Labour Law, which regulates employment relationships in the semi-autonomous Kurdistan Region (comprising the Duhok, Erbil, and Sulaymaniyah provinces)) establish a system for hiring workers.

Prospective employers must notify their local employment office of a vacancy. The employer may hire any individual if the employment office does not locate a viable candidate. Employers may publicly advertise a position in Iraq only after engaging the employment office and receiving a negative or no response.

Employers must be mindful of this distinction during the hiring process in order to ensure that foreign workers have obtained proper documentation, such as work and residency permits. The legal definition of a ‘worker’ encompasses local and foreign workers and the law requires employers to treat workers equally. To this extent, most rules concerning employment relationships – including with regard to sick and annual leave, working hours, and termination – are the same for both foreign and Iraqi workers.

Any new employee should provide the following information:

• Name
• Current and Permanent address
• Nationality Identification
• Identification number - Iraq national ID card
• Contact number
• Copy of passport
• Work permit (for ex-pats)
• Driving Licence

As long as the contract of employment is so specified, a worker may be subject to a trial period of a maximum of 3 months in order to test his occupational skills, good conduct, and assiduousness at work.

Public Holiday

Iraq recognizes the following public holidays:

• January 1: New Year's Day
• January 6: Iraqi Army Day
• March 21: Festival of Spring
• April 21: Eid al-Fitr
• May 1: Labor Day
• June 27 – Jul 1: Eid al-Adha
• July 14: Republic Day
• July 19: Islamic New Year
• September 26: Mawlid al-Nabi
• October 3: Sovereignty Day
• December 25: Christmas

Employers must reimburse employees for the number of days an employee misses due to sickness, but only after an employee obtains a medical certificate for sick leave which includes the number of days of sick leave that can be taken according to a physician. Employers must reimburse employees for the number of days the physician has noted up to a maximum of eight days at one time. Employers must reimburse employees for up to 30 days of paid sick leave in a year, and after 30 days, Social Security covers sick pay.

Female employees are entitled to up to 14 weeks of maternity leave, of which six weeks must be after the female employee has given birth. This time period can be extended for multiple births or difficult births up to a total period of nine months. Employers must remunerate employees with full pay during the normal allowed period of maternity leave. Extra leave taken will be remunerated as sick leave. Nursing mothers are entitled to a paid break of an hour each day.

The Labor Law does not grant fathers paternity leave. Any parent (male or female) is entitled to unpaid leave for up to three days to tend to a sick child under six years of age.

In Iraq, any parent (male or female) is entitled to unpaid leave for up to three days to tend to a sick child under six years of age.

Employees generally are entitled to 21 days of paid annual leave. Employees working in positions harmful to their health are entitled to 30 days of paid leave annually. The amount of leave an employee is entitled to each year increases by two days after five and after ten years of service, and then by three days for every subsequent five years of service. A worker shall take his annual leave all at one time.

Women with one or more children under six years old may take three days of leave without pay to care for a sick child.

Employees are entitled to five days of paid leave for their marriage, one day of paid leave for the marriage of their child, or five days of paid leave for the death of a parent, spouse, spouse's parent, sibling, or child.

In Iraq, if the employee is involved in some hazardous activity like heavy equipment operation, etc., he will be entitled to 30 days of paid leave.

Employees generally may terminate a contract with 30 days' notice. If 30 days' notice is not given, the employee owes the employer compensation equal to their salary for the time of notice not given.

Employees are also generally entitled to severance pay of two weeks of wages for each year of service. If an employee dies, the worker's family is entitled to two months of wages, provided that the employee worked for the employer for at least a year.

Foreign workers are required to obtain a visa for foreign nationals before arriving in Iraq to work at an Iraqi Consulate.

Foreign workers must also obtain a work permit, regulated by the Ministry of Labor and Social Affairs, before engaging in employment in Iraq. A multiple entry visa can be applied for once a foreign worker is in Iraq, which is regulated by the Ministry of the Interior in Iraq.

Employers may review workers’ or potential workers’ criminal records if their request to do so is explicit and agreed upon in the employment contract or pre-employment agreement. The law requires security companies to:

• review a potential worker’s criminal record before hiring them, and
• file a copy of this document with the Ministry of Interior.

Employers may review workers’ or potential workers’ criminal records if their request to do so is explicit and agreed upon in the employment contract or pre-employment agreement. The law requires security companies to:

In general, nothing prohibits employers from requesting workers’ or potential workers’ medical histories. 

Employee drug use is governed by the Iraqi and Kurdistan Labour Laws only to the extent that it affects workers while they are in the workplace. However, if drug screening is written into an employment or pre-employment agreement, once signed, the worker must abide by it.

Neither the Iraqi nor the Kurdish Labour Laws require employers to conduct credit checks on potential employees. In practice, it is unlikely that banks in Iraq will permit a credit check on an individual.

Both the Iraqi and Kurdish Labour Laws require workers to have the proper documentation, including a work permit, in order to work. Therefore, enquiring about a potential worker’s proof of immigration should be viewed as complying with the law.

It is uncommon for employers or potential employers to check the social media accounts of workers or potential workers. However, to the extent that this information is public, there should be no limitation on reviewing it. Employers cannot force workers to divulge their social media passwords.