Permanent Employment:

Iraq's Labor Law does not provide an explicit definition of permanent employment. It states that a fixed-term employment contract cannot be used for permanent employment. The employment contract of permanent employees must be for an undetermined time. If a fixed-term employment agreement is renewed more than once, it is considered a permanent employment contract.

Fixed-Term or Specific-Purpose Contracts:

According to Iraq's Labor Law, fixed-term employment contracts can be used for specific work or services expected to be complete within a maximum period of 1 year. The law guarantees employees with fixed-term employment contracts the same rights as permanent employees. If a fixed-term employment agreement is renewed more than once, it is considered a permanent employment contract.

Temporary Employment:

Iraq's Labor Law defines temporary work as any work which by its nature requires completion in a determined time. The law also defines casual work as that required by unforeseen circumstances, not included in the normal activities of the employer, and the performance of which does not require more than 6 months.

The Labour Law allows hiring contractors to do specific jobs. If the main employer subcontracts any of their jobs or part of them to another employer, the subcontractor must provide equal rights to their employees and employees of the main employer, and both must be jointly liable in this respect.

Written Agreements:

Iraq's Labor Law does not mandate the conclusion of employment contracts in writing. The contract is to be made by the mutual agreement between the employer and the employee. If the contract is made in writing, 3 copies are to be produced and signed: 1 for the employer, 1 for the employee, and the third copy is to be deposited with the Department of Employment and Loans. The written contract must include the following information:

• Name and address of the employer

• Name, birth date, profession, qualifications, residence, and nationality of the employer Nature, duration, type, and start date of the work

• Salary and the method, date, and place of payment

• Working hours and their division method

• Probationary period, if any.

Oral Agreements:

Iraq's Labor Law recognizes and accepts employment contracts that are made orally. In such cases, the responsibility of proving the existence of the contract lies both with the employer and the employee.

Implied Agreements:

Iraq's Labor Law does not recognize implied employment contracts. An employment contract must be made orally or in writing, by virtue of the mutual agreement of its two parties, i.e. the employer and the worker. In the absence of a written employment contract, they bear the burden of proving the existence of the contract and must submit the information regarding any right and claim by virtue of the contract.

Per Iraq's Labor Law, an employment contract must include a probationary period if the employee does not have a professional certificate that proves their skill in the assigned work. The probationary period's duration is to be decided by mutual agreement between the parties, but it may not exceed a maximum duration of 3 months. An employee cannot be subjected to more than 1 probationary period with the same employer.

If it appears to the employer that the employee is not capable of performing the assigned work, the employer may terminate the contract within the probationary period, provided that the employee is given notice at least 7 days before the termination date.

Iraq's Labor Law defines working hours as the time during which the employee is at the disposal of the employer engaging them, excluding meal periods. The law stipulates that normal working hours cannot exceed eight daily or 48 weekly, subject to some exceptions. For work performed over 2 shifts and intermittent work, the employee must not be present at the workplace for more than 10 hours, provided the number of actual working hours does not exceed eight per day. Working hours may not exceed 7 hours per shift for night work or 7.5 hours for mixed-schedule work. Working hours for employees under 16 cannot exceed 7 hours per day.

In exceptional cases, employees and employer associations may agree to increase the daily working hours for a specified period, provided the average number of weekly working hours does not exceed 48 hours.

The number of working hours per day shall be reduced for work that is arduous or harmful to health. Whether work is of such a nature and the maximum number of working hours shall be determined by the Minister's instructions upon the National Center for Occupational Health and Safety's proposals.

The minimum working age in Iraq is 15 years. The law prohibits the employment of minors (below the age of 18 years) in any jobs that can harm their health, safety, or morality. Minors are also not to perform night work or mixed schedule work. Persons below the age of 18 years can only be employed after a medical exam is conducted by a medical committee to confirm their physical and mental fitness for the job. Working hours for employees under 16 cannot exceed 7 hours per day. Minor employees are to be provided with at least a 1-hour break after working for 4 consecutive hours. Minor employees are entitled to an annual leave of 30 days per year.

Employers of minors must post a copy of the provisions regarding the protection of minors at the workplace. Employers of minors must also develop a minor’s register specifying their names, ages, and the work assigned to them.

These regulations do not apply to minors older than 15 years of age who work in a family business under the authority or supervision of their spouse, father, mother, or brother to produce local consumer goods without employing wage earners.

January 1 - New Year's Day

January 6 - Army Day

March 6 - National Day of Tolerance and Coexistence March 21 - Nowruz

April 10 - Eid al-Fitr

April 11 - Eid al-Fitr holiday

April 12 - Eid al-Fitr holiday

May 1 - Labor Day

June 16 - Eid al-Adha

June 17 - Eid al-Adha holiday

June 18 - Eid al-Adha holiday

June 19 - Eid al-Adha holiday

July 7 - Islamic New Year

July 14 - Republic Day

July 16 - Ashura

September 15 - The Prophet's Birthday

October 3 - Iraqi Independence Day

December 10 - Anniversary of Victory over ISIS December 25 - Christmas Day

Iraq's Labor Law guarantees a fully paid annual leave of 21 days to employees after at least one year of service with the same employer. Employees performing work that is arduous or harmful to health are entitled to at least 30 days of paid leave for each year of work. Leave is increased according to the number of years of service with the same employer.

An employee shall be entitled to proportional leave in relation to any fraction of a year of work. The days during which an employee is not working for reasons beyond their control, such as illness, injury, accident, or maternity, are included within the service period.

Employees are entitled to receive a wage for the entire period of leave corresponding to not less than the wages they received during the last six months of service. However, transportation, food, and risk allowances are excluded from this amount. The employee's wages for the leave period must be paid to them before they take the leave.

January 1 - New Year's Day

January 6 - Army Day

March 6 - National Day of Tolerance and Coexistence March 21 - Nowruz

March 30 - Eid al-Fitr

March 31 - Eid al-Fitr holiday

April 1 - Eid al-Fitr holiday

May 1 - Labor Day

June 6 - Eid al-Adha

June 7 - Eid al-Adha holiday

June 8 - Eid al-Adha holiday

June 9 - Eid al-Adha holiday

June 26 - Islamic New Year

July 5 - Ashura

July 14 - Republic Day

September 4 - The Prophet's Birthday

October 3 - Iraqi Independence Day

December 10 - Anniversary of Victory over ISIS December 25 - Christmas Day

Iraq's Labor Law entitles employees to 30 days of annual sick leave paid by the employer. Employees can accumulate up to 180 days of sick leave. Insured employees who remain sick after exhausting all their paid sick leave can apply to the state for benefits. The Pension and Social Security Fund will reimburse the employer for wages paid by the latter to the insured employee during any period of sick leave exceeding 30 days per year.

The sick leave shall be granted on the basis of a medical report drawn up by a physician and approved by the employer or an official medical authority. The period of sick leave shall count as service to the employer.

Iraq's Labor Law entitles pregnant employees to a fully paid maternity leave of at least 14 weeks, which can start eight weeks before their expected due date by providing a medical certificate issued by a competent medical authority. The pregnant employee is entitled to take the remaining days of the leave after the delivery, provided that the period of this leave after the delivery is not less than six weeks.

Maternity benefits are provided by the Ministry of Labor and Social Affairs and amount to 100% of an insured worker's earnings provided in addition to a lump sum maternity grant of one month for each year of contributions.

A competent medical authority may extend the leave for up to nine months in the case of a difficult childbirth, the birth of more than one child, or in the event of pre or post-natal complications. At the end of her maternity leave, the working mother must be able to go back to the same position or to be employed in a similar position with the same wage.

Minimum Wage:

Iraq's minimum wage, which was most recently raised in November 2022, is set at IQD 450,000 (Iraqi dinar) per month. The minimum wage is set separately in the autonomous Iraqi Kurdistan region. The minimum wage in Iraqi Kurdistan is IQD 280,000.

Salary must be paid weekly for employees hired by the day or week, and monthly for other employees. The maximum delay allowed in the payment of wages is 5 days.

Overtime, Holiday and Vacation Pay:

Iraq's Labor Law defines working hours as the time during which the employee is at the disposal of the employer engaging them, excluding meal periods. The law stipulates that normal working hours cannot exceed 8 daily or 48 weekly, subject to some exceptions.

The pay for overtime hours is at least 150% of the employee's normal wage in case of day work. For night work, the overtime pay is at least 200% of the employee's normal wage. Work completed on a day of rest or public holiday must be compensated at 200% of the normal wage, and the employee must also receive one compensatory rest day.

Employees are entitled to receive a wage for the entire period of leave corresponding to not less than the wages they received during the last 6 months of service. However, transportation, food, and risk allowances are excluded from this amount. The employee's wages for the leave period must be paid to them before they take the leave.

Iraq's Labor Law does not provide for employees' paternity leave.

Notice Period:

According to Iraq's Labor Law, the employer must generally give notice before terminating an employee's employment contract. The duration of the notice period is 30 days. If the employer does not provide notice, they will be liable to pay 30 days' compensation to the employee.

If it appears to the employer that the employee is not capable of performing the assigned work during a probationary period, the employer may terminate the contract within the probation period, provided the employer provides the employee with notice sent at least 7 days before the date of termination.

Severance Benefits:

Iraq's Labor Law generally mandates the provision of severance benefits to employees whose contract has been terminated. The amount of severance pay owed is equal to two weeks' wages for every year of the employee's service. The severance package is not paid if the contract is terminated for the following reasons:

• If the employee is imprisoned for more than a year by a court judgment.

• If the employee commits a serious violation of the essential obligations under the contract If it is proved during probation that the employee is not sufficiently qualified for the job.

Pension:

In Iraq, the retirement scheme covers all employed persons but excludes the self-employed. Public-sector employees, military, and police personnel are members of a separate scheme.

According to the new Social Security Law in Iraq, the retirement age varies from 50 to 63 years for men, and 50 to 58 years for women, depending on their years of service. The old-age pension may be payable abroad in some instances. Employment must cease. Individuals who do not meet the contribution requirement for an old-age pension will receive an old-age settlement.

Insured persons qualifying for an old-age pension will receive 2.5% of their average monthly earnings during the last 3 years multiplied by the number of months of contributions, divided by 12. Insured persons qualifying for an old-age settlement will receive a lump sum of the average monthly earnings paid in the last three years multiplied by the number of years of service.

Dependents’ /Survivors Benefit:

In Iraq, the social insurance scheme provides benefits to survivors of the insured. The deceased must have received or been entitled to receive an old-age or full disability pension (assessed disability of at least 91%) at the time of death.

The benefits apply regardless of whether the disability pension was received due to an occupational or non-occupational injury. Eligible survivors include widow(er)s, orphans, dependent mothers, fathers, sisters, or brothers.The maximum total combined survivor pension is 100% of the old-age or disability pension the deceased received or was entitled to receive.

If the deceased was receiving a partial disability pension due to an occupational injury, a lump sum of four years of the partial disability pension the deceased received or was entitled to receive is paid to the widow or a dependent disabled widower.

Invalidity Benefit:

In Iraq, the social insurance scheme provides benefits to disabled insured persons. Qualified individuals must be assessed as having a permanent or long-term loss of working capacity of at least 91% to be considered totally disabled. Individuals are eligible for partial disability if they are assessed as having a permanent or long-term loss of working capacity of 35% to 90%.

Individuals who qualify for a disability pension will receive 2.5% of their average monthly earnings during the last three years multiplied by the number of months of contributions, divided by 12. Those qualifying for partial disability will receive a percentage of the full pension according to their assessed degree of disability.

Iraq's Labor Law also provides disability benefits for employees who suffer an occupational injury. There is no minimum qualifying period. These benefits are funded by employer contributions of 2% of monthly payroll (3% for employers in the oil industry).

Personal Income Tax:

Per Iraq's tax code, residents are liable to pay tax on income arising inside or outside of the country, while non-residents are taxed only on income sourced in Iraq. A resident is a person who has stayed in Iraq for at least six months in a year or a consecutive period of four months in a year.

The tax assessment year runs from January 1 through December 31. The rates of income tax on gross taxable income vary between 3%-15%.

Types of Visas:

The following categories of visas are applicable in Iraq:

• Ordinary visas, which entitle the bearer to enter Iraq only once within 3 months from the date of issuance and to reside for a period not exceeding 3 months.

• Transit visas, which entitle the bearer to enter Iraq only once within 3 months from the date of issuance and to reside for a period not exceeding 7 days.

• Transit visa without stop, which entitles the bearer to pass through Iraq under the supervision of the competent authorities only once, without stopping, and within three months from the date of its granting.

• Diplomatic visas, which are issued to diplomats of other countries working in Iraq.

• Service visas, which are granted to persons who bear service passports.

• Tourist visas, which entitle the bearer to enter Iraq one time within 3 months from the date of issuance and to reside for a period of 1 month.

• Emergency visas, which are granted by a Residence Officer to foreign nationals who reach Iraq without obtaining an entry visa for justifiable reasons.

Work Permit:

Iraq's Labor Law makes it mandatory for foreign nationals working in Iraq to obtain a work permit issued by the Ministry of Labor and Social Affairs. The following documents are required to obtain the permit:

• Application signed by the employer, addressed to the Department of Employment and Loans and Department of Foreigners Copy of the employee's passport.

• List of Iraqi workers employed by the company.

• Foreign guarantor of the employee in their home country.