Hiring Foreign Workers in Iraq: Work Permits under Instructions No. 1 of 2026

The legal framework

Labour Law No. 37 of 2015 expressly regulates the work of foreigners in Iraq (Article 2). It defines a foreign worker as a natural person without Iraqi nationality who works, or wishes to work, in Iraq as a worker other than on their own account (Article 1/Twenty-third). Its core rules are:

• No work without a permit. Government bodies and employers may not employ a foreign worker in any capacity unless the worker holds a work permit issued by the Ministry, against a fee set by ministerial instructions (Article 30). The foreign worker may not take up any work before obtaining the permit (Article 31).
• Return travel and repatriation. An employer that recruited a foreign worker at its own expense must provide a ticket back to the country of recruitment, unless the worker left before the end of the contract for an unlawful reason. If the worker dies, the employer must bear the cost of preparing and transporting the body home at the family's request (Article 32).
• Job loss is not illegality. A foreign worker legally resident for work is not in an irregular situation merely because they lost their job. Job loss alone does not lead to withdrawal of the residence or work permit, unless the worker has broken Iraqi law (Article 34).
• Penalty. Violations of the foreign-workers chapter are punishable by a fine of between three times the minimum daily wage and three times the minimum monthly wage (Article 36).

Article 33 authorises the Minister to issue special instructions on recruiting and employing foreign workers. Instructions No. 1 of 2026 were issued on that basis. The Labour Law itself does not set any ratio of Iraqi to foreign workers; the ratios discussed below come from other instruments.

Labour Law No. 37 of 2015 has not been amended since its enactment; the only change to its operation is Federal Supreme Court decision No. 67/Federal/2021, which concerns the composition of labour courts (Article 165). A proposed First Amendment Law (seven articles, including rules on recruiting foreign and domestic workers) had its first reading in the Council of Representatives on 25 July 2026. It is not law as at October 2026.

Instructions No. 1 of 2026: key points

The Instructions were published in Official Gazette No. 4863 on 30 March 2026 and apply from the date of publication (Article 13). They repeal the Instructions for Foreigners Practising Work in Iraq No. 18 of 1987 (Article 12). The summary below follows the official English translation published by the Ministry of Justice.

Who applies (Article 1). Applications go to the Department of Labour and Vocational Training at the Ministry of Labour and Social Affairs. They may be filed by companies contracted with State departments and the public sector, licensed private employment offices, employers, or the foreign worker through the employer that recruited them.

Conditions for recruitment or employment (Article 2)

• lawful entry and residence under the Law on the Residence of Foreigners No. 76 of 2017;
• confirmation from the workers' Pension and Social Security Department and the Directorate of Residence Affairs that the employer or worker has no outstanding violation relating to recruitment or employment;
• a labour-market test no candidate in the Department's job-seeker database meets the required qualifications, or the employment departments issue an apology within 15 days of registering the employer's request;
• medical evidence that the worker is free of infectious and communicable diseases and fit for the work;
• for skilled workers, evidence of skills through a certified experience certificate or graduation document;
• proof that the employer can pay the foreign worker's wages;
• for domestic work, no more than two foreign workers per household without the Department's approval;
• a pledge not to change the profession for which the worker was recruited;
• no change of employer without the necessary approvals.

Project inspections (Article 3). Committees at the Department's headquarters and in the governorates assess projects that request three or more foreign workers. They visit the project to confirm it exists, evaluate actual need (taking into account foreign workers already employed there), and verify adequate housing, food and working environment.

The permit (Articles 4 and 5). The worker may not start work before obtaining the permit. Conditions include a written request through the employer, lawful entry and residence, no security objection, medical clearance, and no suitable job-seeker in the Department's database. The permit is granted by the Minister or a designee, is valid for one year, and is renewable annually once the conditions are met. The renewal request is submitted through the employer during the last month before expiry.

Procedure (Articles 6 and 7). For a worker outside Iraq, the employer applies to the Department, one of its governorate branches or a licensed recruitment office, with certified qualification documents. It obtains the approvals needed for the entry visa, then attends the Department within 30 days of the worker's entry to complete the permit. For a worker already in Iraq, the employer applies with the same supporting documents, and the worker's residence must be lawful.

Continuing duties (Articles 8, 9 and 11)

• the employer and any licensed office must notify the Department and the nearest police station if the worker absconds;
• the employment contract must be concluded in Arabic and English, or in the worker's native language;
• in technical and specialised projects, the foreign worker must pledge to train one or more Iraqi workers during the permit period.

Revocation (Article 10). The permit is revoked if:

• the application information proves incorrect;
• the employer dies and no change-of-employer request is made within the permit's validity;
• the worker dies;
• the employment contract expires;
• the project closes;
• the worker is absent without lawful reason for 10 consecutive days or 30 non-consecutive days in the work year;
• the security authorities notify that the worker's presence harms the public interest or national security;
• the worker practises a profession other than the one permitted.

Workforce ratio

The foreign-worker ratio is 80% Iraqi and 20% foreign.

• Council of Ministers decision of 2024: at least 80% Iraqi workers. In 2024 the Council of Ministers decided that private-sector companies and companies contracted with the Ministry of Oil must employ at least 80% Iraqi staff. The Ministry of Labour stated in December 2025 that it requires four Iraqi workers for every foreign worker (INA, 3 December 2025). In September 2026, Ministry officials said that projects must employ 80% Iraqi and only 20% foreign workers (964media, 28 September 2026). We have not seen the published text of the Cabinet decision. Practitioners cite it as Decision No. 24832 of 2024. The ratio to plan on is no more than one foreign worker for every four Iraqi workers.
• Investment Regulation No. 2 of 2009: local workers at least 50%. When granting an investment licence, the National Investment Commission takes into account that local labour is not less than 50% of the total workforce of the project (Article 30/First). Licensed investment projects must also meet that figure. Contracts in the oil sector may set their own local-content targets.

Neither Labour Law No. 37 of 2015 nor any of the instruments above sets a ratio of two-thirds Iraqi to one-third foreign workers.

Fees and social security costs

Article 30 of the Labour Law refers to a permit fee set by ministerial instructions. Instructions No. 1 of 2026 do not state an amount, so employers should confirm the current fee with the Department at the time of application.

Separately, the Workers' Retirement and Social Security Law No. 18 of 2023 imposes a work fee of IQD 2,000,000 on the employer for each foreign worker who enters Iraq, collected by the Fund (Article 106/First). It also imposed a one-time fee of IQD 750,000 for foreign workers whose status was regularised during the year of enactment (Article 106/Second).

For contributions, the employer pays its own share (12% of wages and allowances, or 25% for oil and hydrocarbon businesses). For foreign workers, it also bears the 8% share that the State pays for Iraqi workers (Article 14/Second). Foreign workers are excluded from unemployment compensation (Article 68). Dues payable to a foreign worker who leaves Iraq are governed by the reciprocity rule or international labour conventions, whichever is more favourable (Article 25). Fragomen reported in November 2024 that employers must now also contribute for foreign workers covered by a home-country scheme (3% of salary, or 7% in oil and gas). We have not seen the underlying instrument, and employers should confirm the current position with the Department.

The Kurdistan Region

Instructions No. 1 of 2026 are federal instructions. Work permits in the Kurdistan Region are issued by the Kurdistan Regional Government's Ministry of Labour and Social Affairs. The Region applies a separate local-workforce rule: under Council of Ministers Decree No. 172 of 2022, at least 75% of the workforce must be local, leaving a maximum of 25% foreign workers. Employers with staff in both areas need two compliance tracks (see the fifth article in this series).

Practical checklist

1. Plan the project headcount to the 80/20 ratio (no more than one foreign worker for every four Iraqis).
2. File the labour-market request early, and keep evidence of the 15-day response or apology.
3. Prepare certified qualification documents and medical certificates in advance.
4. Make sure the worker does not start work before the permit is issued.
5. Diary each permit's expiry date and file the renewal in the last month.
6. Issue bilingual contracts (Arabic and English or the worker's language).
7. Budget for the Article 106 work fee and the additional 8% contribution.
8. Keep a process for reporting absconding workers and for change-of-employer approvals.

Frequently Asked Questions

How long is an Iraqi work permit valid?

One year, renewable annually if the conditions continue to be met. Renewal is requested through the employer during the last month before expiry (Instructions No. 1 of 2026, Article 5).

What share of a workforce can be foreign?

In federal Iraq, the ratio is 80% Iraqi and 20% foreign under a 2024 Council of Ministers decision, and employers should plan on that basis. The Labour Law itself sets no ratio. The Kurdistan Region applies a 25% maximum under Decree No. 172 of 2022.

Licensed investment projects: a separate local-labour rule

Licensed investment projects need at least 50% local labour (Investment Regulation No. 2 of 2009, Article 30/First).

Can a foreign worker start while the permit is pending?

No. The Labour Law prohibits employing a foreign worker without a permit (Article 30) and prohibits the worker from starting work before obtaining it (Article 31). The Instructions repeat this (Article 4).

Must the contract be in Arabic?

The contract must be in Arabic and English or the worker's native language (Instructions No. 1 of 2026, Article 9).

Related reading

• Iraqi Labour Law on our website
• Social Security Obligations for Employers in Iraq under Law No. 18 of 2023
• Federal Iraq or Kurdistan Region? Which Labour and Social Security Rules Apply

Sources

1. Instructions No. 1 of 2026 on the Recruitment, Employment and Work Permits of Foreign Workers in Iraq, official English translation, Official Gazette No. 4863 (30 March 2026), Ministry of Justice: https://moj.gov.iq/upload/pdf/2154e6b57c1825d4_%D8%AA%D8%B9%D9%84%D9%8A%D9%85%D8%A7%D8%AA%20%D8%A7%D8%B3%D8%AA%D9%82%D8%AF%D8%A7%D9%85%20%D9%88%D8%AA%D8%B4%D8%BA%D9%8A%D9%84%20%D9%88%D8%A7%D8%AC%D8%A7%D8%B2%D8%A9%20%D8%A7%D9%84%D8%B9%D9%85%D8%A7%D9%84%20%D8%A7%D9%84%D8%A7%D8%AC%D8%A7%D9%86%D8%A8%20%D9%81%D9%8A%20%D8%A7%D9%84%D8%B9%D8%B1%D8%A7%D9%82%20-%20Copy.pdf
2. Labour Law No. 37 of 2015 (Arabic text): https://cm.qu.edu.iq/?page_id=17299 ; English translation: https://learningpartnership.org/sites/default/files/resources/pdfs/Iraq-Labor%20Law-2015-English.pdf
3. Workers' Retirement and Social Security Law No. 18 of 2023, official English translation: https://www.moj.gov.iq/upload/pdf/%D9%82%D8%A7%D9%86%D9%88%D9%86%20%D8%A7%D9%84%D8%AA%D9%82%D8%A7%D8%B9%D8%AF%20%D9%88%D8%A7%D9%84%D8%B6%D9%85%D8%A7%D9%86%20%D8%A7%D9%84%D8%A5%D8%AC%D8%AA%D9%85%D8%A7%D8%B9%D9%8A%20-%20Copy_102.pdf
4. Fragomen, "Iraq: New Social Security Contribution Obligations" (4 November 2024): https://www.fragomen.com/insights/iraq-new-social-security-contribution-obligations.html
5. KRG report "Job Creation and Workers' Rights in the Kurdistan Region" (15 March 2026): https://www.iraq-businessnews.com/wp-content/uploads/2026/03/KRG-Job-Creation-and-Workers-Rights-in-the-Kurdistan-Region.pdf
6. Kurdistan Regional Government, Department of Media and Information (17 March 2026): https://gov.krd/dmi-en/activities/news-and-press-releases/2026/march/krg-creates-230-000-jobs-as-social-security-enrolment-reaches-303-000/
7. Official Gazette No. 4863 (30 March 2026), Arabic text of Instructions No. 1 of 2026: https://moj.gov.iq/upload/pdf/fc0fc66ca031c4d2_4863_compressed.pdf
8. Iraqi News Agency, "Iraq Sets 80% Local Hiring Requirement as Labour Ministry Issues Rules for Foreign Workers" (3 December 2025): https://ina.iq/en/local/43964-iraq-sets-80-local-hiring-requirement-as-labour-ministry-issues-rules-for-foreign-workers.html
9. 964media, Ministry of Labour officials on foreign workers (28 September 2026, Arabic): https://964media.com/721045/
10. Investment Regulation No. 2 of 2009, Official Gazette No. 4111 (3 February 2009), Article 30 (Arabic text): https://wiki.dorar-aliraq.net/iraqilaws/law/21175.html
11. Iraqi Parliamentary Observatory (miqpm), Proposed First Amendment Law to Labour Law No. 37 of 2015, status page (first reading only): https://www.miqpm.com/2026/Legislation_Details.php?ID=44&lang=ar

This article is general information, not legal advice.