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Iraq's economy heavily relies on its oil sector, which contributes around 92% to its foreign exchange earnings. This dependence on oil underscores the nation's abundant pool of oil and energy experts and professionals.
Arabic serves as the primary language in Iraq, facilitating seamless integration with Middle Eastern companies. Additionally, Iraq's GMT +3 time zone adds to its convenience for regional collaboration.
Notably, Iraq also has a big population of English speakers: roughly 11 million people, representing around 35% of the country.
Iraq is home to some of the world's oldest civilizations, with a history that includes the ancient Mesopotamian civilizations. Its often referred to as the "Cradle of Civilization" due to its rich historical significance and contributions to human development.
In Iraq, employment contracts must be in Arabic. However, in autonomous areas of Kurdistan, contracts can be drafted in Kurdish. It is common practice for contracts to include:
Iraqi Employers can hire employees on probation for up to three months.
In Iraq, regular working hours are 48 hours per week. Employees can work eight hours a day for six days each week.
Working hours may be increased in some cases. The increase is treated as overtime, for which the wage must be increased by 50% to 100%, depending on the type and nature of the work.
The minimum wage in Iraq ranges from 250,000 IQD to 350,000 IQD monthly.
There is no mandatory law for a 13th-month salary payment in Iraq.
Iraq operates a progressive income tax rate, ranging from 3% to 15%. Individual income tax is calculated based on annual income brackets.
Pension in Iraq is funded by social security contributions.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Iraq tailored to your needs.
In Iraq, employment can be terminated by both the employer and the employee. The employer can terminate based on substantial grounds or must pay severance if termination occurs without grounds.
A 30-day notice is mandatory for permanent employees. For termination during probation, at least seven days notice must be provided. Failing to do so would result in the employer compensating the employee with wages equivalent to the notice period.
In Iraq, severance pay is typically two weeks' salary for each year of service. An employee is entitled to this end-of-service gratuity, except in specific cases such as:
There are 14 recognised national holidays in Iraq:
Iraqi employees receive social security benefits, including:
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
By leveraging dedicated support from in-house legal and compliance experts for case by case questions and more.
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