Iraqi Labor Law No. 37 of 2015 governs private-sector + mixed-ownership-enterprise employment across federal Iraq. The Kurdistan Regional Government (KRG) has slight variations under its own regional labor framework. Dual IQD/USD payroll is common practice (senior staff, IOC contractors, international NGOs). This guide covers every provision — federal + KRG differences highlighted.
Built around how MENA teams actually manage this day-to-day.
Max 48 hours per week, 8 hours per day. Iraq does not federally mandate Ramadan reduced hours (private sector), though many employers apply it voluntarily. Weekly rest: Friday (shortened from Thursday-Friday historical). Rest periods: 30+ min after 5 consecutive hours.
Simple: 50% premium on all overtime regardless of day or night (similar to Saudi). Max 4 hours per day exceptional overtime. Weekly total working + overtime cannot exceed 60 hours. Rest-day work: 100% premium plus day-off-in-lieu or 150% if no in-lieu.
Maximum 3 months probation (shortest in MENA alongside Egypt). Must be written in employment contract. During probation, either party may terminate with 7 days written notice. No EoS during probation period.
Half-month wage per year of service (flat — no tier increase after 5 years like most MENA). Based on LAST wage. Payable at termination regardless of reason, except gross misconduct. Some sectors have more generous schemes (banking, oil) — contract may specify higher.
20 days annual leave for employees with less than 5 years service; 30 days for long-service employees (5+ years continuous). Maternity: 72 days (longest in MENA alongside Kuwait's 70). Sick leave: 30 days full pay + 30 days half + 30 days unpaid per year.
Iraqi businesses commonly pay senior staff, IOC contractors, and international NGO employees in USD alongside local IQD for operational wages. Not a legal requirement — just standard practice given Iraq's currency dynamics. Both must be documented in contract + taxed per Iraqi income-tax law.
Baghdad, Basra, Mosul, and all governorates EXCEPT the Kurdistan Region (Erbil, Sulaymaniyah, Duhok, Halabja). The federal Ministry of Labor and Social Affairs administers enforcement. CBI (Central Bank of Iraq) oversees WPS compliance.
KRG operates under Kurdistan Labor Law No. 71 of 2007 (with amendments). Core provisions similar (hours, probation, EoS) but with KRG-specific differences: weekly rest days may include Friday-only or Friday-Saturday depending on employer, KRG has own social-security framework, income-tax rates differ.
Both federal + KRG allow dual IQD/USD payroll. Oil-sector contractors routinely paid USD portions (especially Basra oil industry). KRG tech + banking in Erbil also commonly USD. Must declare + tax per federal tax law (KRG has separate tax collection but federal framework governs income-tax rates).
Iraqi income tax is progressive: 3% up to IQD 250K, 5% to IQD 500K, 10% to IQD 1M, 15% above. Applied to total wage including USD portions converted. Employer withholds + remits monthly. KRG applies same rates via separate collection.
General Pension Authority governs public-sector pensions. Private-sector employees enroll under separate social-security law (older mechanism). KRG has own regional pension system for public-sector KRG employees. Private-sector employees in KRG typically follow federal framework.
Iraqi Labor Law No. 37 of 2015, enacted in 2015 to modernize private-sector + mixed-ownership-enterprise employment. It replaced the 1987 Labor Law. Covers working hours, overtime (50% flat), probation (max 3 months), end-of-service (half-month per year), annual leave (20-30 days), maternity (72 days), and worker rights. The Ministry of Labor and Social Affairs administers enforcement in federal Iraq. Central Bank of Iraq (CBI) oversees WPS.
No, not directly. The Kurdistan Region operates under Kurdistan Labor Law No. 71 of 2007 (with amendments). Core provisions are similar (hours, probation, EoS) but with KRG-specific differences in social-security, tax collection, and some operational details. Multi-site businesses operating in Baghdad + Erbil must manage dual compliance.
Iraqi law allows wages paid in multiple currencies — common practice for senior staff, International Oil Company (IOC) contractors, and international NGO employees. Contract must document both currencies + conversion rates. Total wage (IQD-equivalent) is taxed per federal income-tax brackets (3% up to 250K IQD, 5% to 500K, 10% to 1M, 15% above). Employer withholds + remits monthly.
Half-month wage per year of service (flat — no tier increase after 5 years unlike most MENA). Based on LAST wage. Payable at termination regardless of reason, except gross misconduct. Some sectors (banking, oil, telecom) commonly pay more generous schemes via contract. KRG follows similar formula via its own labor law.
Yes, natively. All provisions pre-configured — working hours (48/week), overtime (50% flat), probation (3 months), EoS (half-month per year flat), annual leave (20/30 days by tenure), maternity (72 days), sick leave tiers. Dual IQD/USD payroll supported. WPS-compliant CSV exports for CBI-licensed commercial banks (TBI, Rafidain, Rasheed, Bank of Baghdad). Offline-capable mobile biometric critical for Iraqi internet reality.
This page summarizes key provisions of Iraqi Labor Law No. 37 of 2015 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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