--- title: "Hiring in Iraq 2026 | Employer of Record Guide" description: "Hire in Iraq through Teamed's EOR. 12% employer social security, 21 days statutory leave, payroll remittance within 15 days of month end. The Iraq guides, one per layer." canonical: https://www.teamed.global/country-hiring-guides/iraq --- Iraq · Country overview Served by Teamed via an Iraq-licensed EOR entity # What do you need to know to hire in *Iraq*? Iraq employer social security runs at 12% under the 2023 Social Security Law. Statutory leave is 21 days, end-of-service gratuity is 2 weeks per year of service, and payroll runs monthly. Each guide below takes one layer. Last reviewed 13 June 2026 · Iraq guide ## How does Teamed handle Iraq hiring for you? Teamed becomes your legal [employer of record](/lp/employer-of-record) in Iraq for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. Payroll, contracts, and the full Iraq employment law stack run on **one platform**. **Real HR and legal experts** manage every Iraq hire, from the first offer letter to the final settlement. **An actual person**, not a chatbot or a pooled queue, handles your Iraq team alongside EOR, contractor onboarding, and entity payroll on **one platform**. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice. An Iraq contractor who converts to direct hire keeps their record, and that same employee can **graduate** from EOR to your own Iraq entity without re-onboarding. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips. EOR is the right model for a first Iraq hire, **until it isn't**. Three things you won't find on any other Iraq EOR guide - **Iraq's end-of-service gratuity is owed after just one year of service.** The rate is 2 weeks of pay for every completed year. It applies on dismissal and on resignation. Most competitor guides miss that it is payable in both scenarios. [The termination guide](/country-hiring-guides/iraq/termination-and-severance) covers when and how it applies. - **Iraq payroll tax remittance is due within 15 days of the month end.** Employers must file a monthly statement and forward withheld income tax to the General Commission of Taxes within that window. Missing it creates penalties under Iraq's Direct Deduction provisions. Most EOR guides describe the rates but omit the filing deadline. - **The 2023 Social Security Law changed Iraq employer contributions to 12%.** Workers Retirement and Social Security Law No. 18 of 2023 raised the employer rate and reorganised the contribution structure. Many EOR guides still show the pre-2023 rates. The tax and payroll guide has the current figures. Answer.cite this Hiring in Iraq adds 12% employer social security on top of gross salary, under Workers Retirement and Social Security Law No. 18 of 2023. Iraq runs monthly payroll. Employers must remit withheld income tax within 15 days of the month end. Statutory leave is 21 days after one year of service. Teamed runs Iraqi payroll, contracts, and compliance through an EOR entity with the required Iraqi registrations. This page is the map. Each guide below is the detail. At a glance · Iraq IQD · Arabic · Monthly payroll Currency IQD Employer social security 12% Law No. 18 of 2023, non-oil sector Employee social security 5% withheld from net salary Annual leave 21 days after one year of service Sick leave 30 days at full pay per year, up to 180 days total Minimum notice 30 days up to 5 years service Top income tax 15% on income above IQD 1,000,000/year End-of-service gratuity 2 weeks per year after 1 year service, on dismissal or resignation ![A wide illustration of Baghdad at golden hour: the Al-Shaheed Monument reflected in the Martyr's Memorial lake, palm trees lining the waterfront, and a warm amber sky above the city.](/images/country-guides/iraq-hiring.webp) Iraq · per employee · per month · flat $ 599 Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk. Zero FX Fixed No setup fee No exit fee 48-hour onboard ## How much does it cost to hire an employee in Iraq in 2026? An Iraq hire adds 12% employer social security on top of gross salary. There is no mandatory employer pension separate from social security. The total on-cost above salary is lower than many Middle East peers. Employer social security under Workers Retirement and Social Security Law No. 18 of 2023 is 12%. Employees contribute 5% from net salary. There is no separate mandatory pension contribution. The income tax top rate is 15%, with a progressive structure starting at 3% on the first band. Teamed's Iraq price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, taxes, and benefits passed through at cost on every invoice. The full breakdown, with worked examples at current statutory rates, is in the cost guide. [Read the full Iraq cost breakdown](/country-hiring-guides/iraq/cost-breakdown) ## Do you need an Iraq entity to hire employees in Iraq? No. An Employer of Record runs Iraq payroll and contracts from day one. Your own Iraq entity becomes cheaper than EOR somewhere around 5 to 8 employees, depending on salary and registration costs. Registering an Iraqi company requires Ministry of Trade approval, notarisation, and engagement with the Iraqi Companies Registrar. The process typically takes several months and carries ongoing accounting, payroll, and annual filing requirements. An [Employer of Record](/lp/employer-of-record) is faster and cheaper at low headcount. Teamed runs Iraqi payroll, contracts, and social security compliance from day one. The crossover point depends on Iraqi salary levels and your local registration costs. The EOR vs entity guide runs those numbers. Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Iraqi entity on **one platform** under Teamed's Graduation Model, with tenure preserved. [Read the full Iraq EOR vs entity guide](/country-hiring-guides/iraq/eor-vs-entity) ## What are the key employment law rules in Iraq in 2026? Iraq Labour Law No. 37 of 2015 is the governing framework. The 2023 Social Security Law updated employer contributions to 12% and reorganised the retirement program. Iraq Labour Law No. 37 of 2015 governs contracts, working time, leave, and termination. Standard working hours are 8 hours a day and 48 hours a week. Employers must give written contracts. Probation is capped at 3 months, with 7 days notice required to end employment during that period. Workers Retirement and Social Security Law No. 18 of 2023 replaced the previous social security regime. Employers remit 12% and deduct 5% from employees. Payroll tax remittance is due within 15 days of the month end. The hiring guide covers day-one obligations in full. [Read the full Iraq hiring guide](/country-hiring-guides/iraq/hiring-guide) ## What benefits must you provide Iraq employees in 2026? The statutory floor is 21 days of paid annual leave after one year of service. Sick leave runs at 30 days per year at full pay, accumulating to a maximum of 180 days total. Statutory annual leave is 21 days per year under Iraq Labour Law No. 37 of 2015, accruing after one year of service. Sick leave is 30 days at full pay per year, and employees can accumulate up to 180 days of sick leave in total. Maternity leave is paid at full salary for the statutory period under the Labour Law. Sources conflict on the exact duration; Teamed applies the figure stated by the tier-2 law firm source. There is no separate paternity leave entitlement under Iraqi national law. The benefits guide covers each entitlement and the employer obligations. Read the full Iraq benefits guide ## What are payroll taxes in Iraq in 2026? Employer social security is 12% under Workers Retirement and Social Security Law No. 18 of 2023. Employee social security is 5%, withheld from net salary. Iraq has no separate mandatory pension contribution. Iraq social security covers retirement and disability. The employer contributes 12% and the employee contributes 5% of net salary. There is no separate employer pension scheme. Social security contributions apply in the non-oil sector; different rates may apply in the oil and gas sector. Income tax is progressive, starting at 3% on the lowest band, 5% on the second, 10% on the third, and topping out at 15% above IQD 1,000,000 per year. Personal deductions exist for marital status. Employers must remit withheld tax within 15 days of each month end and file a monthly statement. The tax and payroll guide sets out every band and threshold. [Read the full Iraq tax and payroll guide](/country-hiring-guides/iraq/tax-and-payroll) ## How do you terminate an employee in Iraq? Iraq statutory notice for dismissal is 30 days for employees with up to five years of service. Notice scales with tenure at longer service bands. End-of-service gratuity is 2 weeks of pay per completed year, owed after 1 year of service. Notice under Iraq Labour Law No. 37 of 2015 is 30 days for employees with up to five years of service. Notice scales upward for longer-serving employees. The employer must give written notice. During the 3 months probation period, only 7 days notice is required. End-of-service gratuity is 2 weeks of pay for every completed year of service. It applies after 1 year of continuous service, on both dismissal and resignation. Iraqi law does not require a separate social justification finding before dismissal, but procedural rules apply. The termination guide covers the full process. [Read the full Iraq termination and severance guide](/country-hiring-guides/iraq/termination-and-severance) ## What should you know before hiring in Iraq? Two things catch US buyers out. The first is that end-of-service gratuity is owed on resignation, not just on dismissal. The second is the 15 days payroll remittance window. Miss it and you are immediately in penalty territory. **End-of-service gratuity applies on resignation as well as dismissal.** The rate is 2 weeks of pay per year. Employees who resign after 1 year of service are entitled to the full gratuity. US buyers used to at-will employment often miss this. Brief your finance team before the first Iraq hire. **The payroll remittance deadline is 15 days from month end.** Iraq requires employers to forward withheld income tax and file a monthly statement within that window. The income tax system is progressive with a top rate of 15%. The Kurdistan Region operates additional employment rules on top of the federal framework. The hiring guide and the tax and payroll guide both cover these points. [Read the full Iraq hiring guide](/country-hiring-guides/iraq/hiring-guide) ## Frequently asked questions How much does it cost to hire an employee in Iraq? Plan on gross salary plus 12% employer social security under Workers Retirement and Social Security Law No. 18 of 2023. There is no separate mandatory employer pension. Teamed's Iraq fee is one flat number per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide has worked examples. Can a US company hire in Iraq without an entity? Yes. An Employer of Record like Teamed runs Iraqi payroll, contracts, and social security compliance through its own registered entity. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed. Registering your own Iraqi company typically takes several months and requires Ministry of Trade approval. What is Iraq's employer social security rate in 2026? Employer social security is 12% under Workers Retirement and Social Security Law No. 18 of 2023. Employees contribute 5% from net salary. There is no separate mandatory pension contribution. The social security system covers retirement and disability. Different rates may apply in the oil and gas sector. What are Iraq statutory notice periods? The statutory minimum notice for dismissal is 30 days for employees with up to five years of service. Notice scales upward for longer tenure. During the 3 months probation period, either party needs only 7 days notice to end the employment. The termination guide covers the full notice structure. What is Iraq's end-of-service gratuity? End-of-service gratuity under Iraq Labour Law No. 37 of 2015 is 2 weeks of pay for every completed year of service. It is owed after 1 year of continuous service, on both dismissal and resignation. Employees who resign are entitled to the full gratuity just as dismissed employees are. What is the minimum annual leave for an Iraq employee? Statutory minimum paid annual leave is 21 days per year under Iraq Labour Law No. 37 of 2015, accruing after one year of service. Sick leave is 30 days at full pay per year, accumulating to a maximum of 180 days in total. Teamed Legal Operations Iraq requires operational care, but the statutory framework under Labour Law No. 37 of 2015 is codified and consistent. The two things buyers most often miss are the end-of-service gratuity on resignation and the 15-day payroll remittance window. Both are manageable. Neither is optional. A note from Tom Price-Daniel Iraq has a clear statutory framework. Social security runs at 12 percent for the employer. End-of-service gratuity accrues from year one, on dismissal and on resignation. Most of the cost surprises in Iraq come from not reading those two rules before the first hire. Read the right Iraq guide before that hire, not after the first payroll penalty. Tom Price-Daniel · Co-founder, Teamed ## Keep reading - [Iraq hiring guide, offer to payslip](/country-hiring-guides/iraq/hiring-guide)guide - [Iraq employer cost breakdown 2026](/country-hiring-guides/iraq/cost-breakdown)guide - [EOR vs entity in Iraq](/country-hiring-guides/iraq/eor-vs-entity)guide - [Iraq termination and severance](/country-hiring-guides/iraq/termination-and-severance)guide - [Iraq tax and payroll](/country-hiring-guides/iraq/tax-and-payroll)guide - [Employer of Record overview](/lp/employer-of-record)core - The Graduation Modelcore - [Teamed pricing, Zero FX Fixed](/pricing)core - [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator/iraq)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Iraqi Ministry of Labour and Social Affairs and the General Commission of Taxes for Iraq, or speak to a qualified professional, before relying on any specific framework.