How much end-of-service gratuity does an Iraqi private-sector employee receive? Under Labor Law 37/2015: half-month wage per year of service — flat, with no tier increase after 5 years (unlike most MENA). Based on LAST wage. Dual IQD/USD payroll is common practice; EoS computed on full documented wage including USD portions. Worked examples below.
Built around how MENA teams actually manage this day-to-day.
Half-month wage per year of service — flat rate. No tier increase after 5 years (unlike UAE 21+30, Saudi half+full, Kuwait 15+1M, Qatar 3W+1M). Simplest EoS formula in MENA. Partial years prorated. Some sectors (banking, oil) contract for more generous schemes.
Iraqi businesses commonly pay senior staff, IOC contractors, and NGO employees in USD alongside IQD operational wages. Both must be documented in contract. EoS computed on FULL combined wage (USD + IQD converted at agreed rate). At termination, EoS paid in matching proportion or converted per contract terms.
Unlike Saudi (33/66/100% brackets) and Kuwait (Article 51), Iraq has NO resignation reductions. Both resignation + employer-termination pay full EoS. Only exception: gross misconduct under Article 37 of Law 37/2015 (specific grounds for immediate termination without EoS).
Federal Iraq (Baghdad, Basra, Mosul, etc.) follows Law 37/2015. Kurdistan Region (Erbil, Sulaymaniyah, Duhok) follows KRG Labor Law 71/2007 — EoS formula similar but some operational differences (social security, tax collection). Multi-site businesses must manage dual compliance.
Article 37 of Law 37/2015 lists grounds for immediate termination without EoS: assault, repeated absence without cause, drunkenness at work, revealing employer secrets, falsifying documents. Must be properly documented with investigation. Similar to Article 44 UAE or Article 80 Saudi.
Law 37/2015 doesn't specify exact days for EoS payment post-termination (unlike UAE 14 days, Saudi 1 week, Egypt 30 days). Standard practice: pay in final payslip or within 30 days. Delays may trigger labour-court claim or Ministry of Labour complaint.
Formula: 3 × 0.5 month = 1.5 months. Gratuity = 1.5 × 1,000,000 = IQD 1,500,000. Flat rate regardless of tenure length.
Formula: 7 × 0.5 month = 3.5 months. Gratuity = 3.5 × 1,500,000 = IQD 5,250,000. No tier increase after 5 years — flat half-month per year continues.
Total monthly wage: IQD 800,000 + USD 500 (at IQD 1,310/USD → IQD 655,000) = IQD 1,455,000 effective. Formula: 5 × 0.5 month = 2.5 months. Gratuity = 2.5 × 1,455,000 = IQD 3,637,500. Paid in matching IQD + USD proportion or converted per contract.
Monthly wage: USD 2,000. Formula: 10 × 0.5 month = 5 months. Gratuity = 5 × 2,000 = USD 10,000 (or IQD 13.1M at IQD 1,310/USD).
KRG formula similar: half-month per year flat. 15 × 0.5 = 7.5 months. Gratuity = 7.5 × 3,000 = USD 22,500. KRG applies same formula as federal 37/2015.
Per Law 37/2015: half-month wage per year of service, FLAT with no tier increase after 5 years (unlike most MENA countries). Simplest EoS formula in the region. Based on LAST wage. Partial years prorated. No resignation reductions (unlike Saudi + Kuwait). Only exception: gross misconduct under Article 37.
In practice yes, legally no. Iraqi law accepts dual-currency wages provided both are documented in contract. EoS is computed on the full combined wage (USD + IQD converted at contract rate). Common contract approach: state both currency portions + conversion methodology. Senior staff + IOC contractors + international NGO employees typically have USD-dominant wages.
Similar but not identical. KRG operates under Kurdistan Labor Law 71/2007 which has a comparable half-month-per-year EoS formula but differs in some operational specifics (social security collection, income tax rates). Baghdad + Basra + Mosul etc. follow federal 37/2015; Erbil + Sulaymaniyah + Duhok + Halabja follow KRG 71/2007.
No. Both resignation + employer-termination pay full EoS under Law 37/2015. Only exception: Article 37 gross misconduct (immediate termination for cause). This makes Iraq's EoS calculation simpler than Saudi (with 33/66/100% brackets) or Kuwait (with Article 51 reductions).
Yes. Law 37/2015 formula pre-configured — half-month per year flat, tenure day-precision, dual IQD/USD payroll support with configurable exchange rates per period, Article 37 misconduct flag for HR, KRG 71/2007 regional variant available via entity setting. Offline-capable mobile biometric critical for Iraqi internet reliability.
This page summarizes key provisions of Iraqi Labor Law No. 37 of 2015 (end-of-service provisions) for general informational purposes only. This is not legal advice. Labor laws are amended periodically; AttendUX makes no warranty about completeness or current validity. For your specific situation — including employment terminations, disputes, cross-border cases, or policy design — consult a labor-law attorney licensed in the relevant jurisdiction and verify with the Iraq Ministry of Labor and Social Affairs.
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