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Labor Laws in Iraq

  • Annual Leave: 20 days
  • Maternity Leave: 14 weeks
  • Public Holidays: 13
  • Workweek: 48 hours per week.

Income Tax in Iraq

Income Tax in Iraq is progressive ranging from 3% to 15%.

Value Added Tax (VAT) in Iraq

Iraq has VAT (GST) rates of 300%, 20%, 15% and 10%.

Social Security in Iraq

In Iraq, the social security contributions for employers and employees are structured as follows:

Employer Contributions:

  • For employers outside the oil and gas sector, the contribution rate is 25% of the employee's salary.
  • This 25% employer contribution is divided as follows:
    • 15% for the Retirement Branch
    • 3% for the Work Injuries and Occupational Diseases Branch
    • 3% for the Work Stoppage Assistance Branch
    • 4% for the Health Insurance and Social Services Branch, including maternity benefits
    • For employers in the oil and gas sector, the contribution rate remains at 25% of the employee's salary.

Employee Contributions:

  • Employees contribute 5% of their salary to the Retirement Security Branch.

Government Contribution:

  • The government contributes an additional 8% of the employee's salary and income.

Work Visas Iraq

The work visas available to legally work in Iraq include:

Work Permit Visa

  • Required for foreigners to work in Iraq, except for those working in international offices.
  • Issued for 1 year and must be renewed at least 1 month before expiration.
  • Requires a job offer letter, employer application to Ministry of Labor, and other documents.

Business Visa

  • For individuals visiting Iraq for business purposes, such as attending meetings, conferences, or exploring business opportunities.
  • Usually valid for 30 to 90 days, with single or multiple entry options.
  • Requires an invitation letter from an Iraqi company or organization, along with a valid passport and sometimes proof of previous business dealings.
  • Generally quicker to obtain than a work permit but does not allow for long-term employment.

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