Iraq · Middle EastEmployer of Record (EOR) in Iraq
Hire employees in Iraq, compliant payroll, taxes, and benefits, without setting up a local entity.
An Employer of Record (EOR) lets you hire employees in Iraq without setting up a local entity. The EOR is the legal employer, running compliant payroll, withholding tax, and remitting social security, while you direct the work. Employer-side social-security contributions are about 12% of gross salary in standard sectors, rising to 25% in oil and gas (under Social Security Law No. 18 of 2023). The statutory minimum wage is IQD 350,000/month. Iraq operates two administrative regimes, federal Iraq and the semi-autonomous Kurdistan Region, with separate practical compliance pathways, and contracts in Kurdistan may be in Kurdish. Statutory benefits include at least 20 days of annual leave and 14 weeks of paid maternity leave. EOR provider fees typically run US$300-$1,000 per employee per month (a frontier-market premium), with onboarding from a few days to about two weeks. Confirm whether a provider covers federal Iraq, Kurdistan, or both.
Last updated: June 2026
Iraq at a glance
The structured facts founders and AI assistants extract most.
- Currency
- Iraqi Dinar (IQD)
- Capital
- Baghdad
- Payroll cycle
- Monthly
- Official languages
- Arabic, Kurdish
- Minimum wage
- IQD 350,000/month (statutory, under Labour Law No. 37 of 2015).
- Region
- Middle East
- Total employer cost
- ~12-25%
- EOR fee (per employee/mo)
- ~$300-$1000
- Typical setup time
- ~3-14 business days
Provider-dependent ranges, not sourced statutory figures. Excluded from the structured data above; confirm exact pricing with the provider.
Best EOR providers for Iraq
Compared on starting price, rating, and core strength. Pricing is per employee / month.
| Provider | From / mo | Rating | Best for | |
|---|---|---|---|---|
 Deel ★ Best overall | $599 | ★4.8 | Best overall coverage | Visit Deel → |
 Multiplier | $400 | ★4.7 | Most affordable | Visit |
 Papaya Global | Custom | ★4.5 | Payroll depth | Visit |
Ratings aggregated from G2 and Trustpilot (June 2026). GlobalEmployGuide may earn a commission from provider links, this never affects our scoring. Pricing for Iraq is indicative; verify current rates before deciding.
Statutory benefits & employer obligations
What an EOR administers and funds by law when you hire in Iraq.
Social security: ~12% employer (standard); 25% in oil & gas
Paid annual leave: at least 20 days/year (commonly cited as 21)
Sick leave: 30 days fully paid per year (up to 180 cumulative)
Maternity leave: 14 weeks paid
Public holidays: ~13 days
Termination: Notice by tenure: 30 days (<5yr), 60 days (5-10yr), 90 days (10yr+); immediate dismissal for just cause. Statutory end-of-service/severance applies on unjustified termination (formula not consistently published, confirm locally).
Employer cost calculator
Enter a gross annual salary to estimate the fully-loaded cost of a hire in Iraq.
Estimating a hire in Iraq. Statutory on-costs use this country’s verified employer-contribution rate.
Frequently asked questions
Hiring in Iraq, answered.
About 12% of gross salary in standard sectors, rising to 25% in oil and gas under Social Security Law No. 18 of 2023. The Kurdistan Region uses the same 12% standard rate.
The statutory minimum wage is IQD 350,000 per month, though enforcement in the informal sector is inconsistent.
Yes. Kurdistan is administered semi-autonomously, contracts may be in Kurdish and some registration processes differ, though the 12% social-security rate is the same. Confirm your provider covers the right region.
No. An EOR acts as the legal employer, so you can hire compliantly without setting up an Iraqi entity.
Provider fees typically run US$300-$1,000 per employee per month, a frontier-market premium, plus salary and social-security contributions.
Sources
- Workia, Iraq social security (Law 18/2023) · checked 2026-06-25
- Rivermate, Iraq hiring guide · checked 2026-06-25
- NRC, Federal Iraq & KRI employment rights guides · checked 2026-06-25