# Employer costs for foreign and Iraqi staff in Iraq — a sourced reference table (October 2026)

Author: Othman Al-Juboori

Item Rule Source
Employer social security contribution 12% (25% for private/mixed employers whose profits come from selling Iraqi oil/hydrocarbons) Law 18/2023, Art. 14/Second; Official Gazette 4734 (28/8/2023)
Employee contribution 5% same
State share 8% for Iraqi workers; not for the 25% category; for foreign workers borne by the employer same
Foreign worker fee IQD 2,000,000 once per foreign worker entering Iraq, paid by employer; not repeated on renewal Law 18/2023, Art. 106/First
Work permit validity 1 year, renewed annually Instructions No. 1 of 2026, Art. 5
End-of-service gratuity two weeks' wage per year of service, due in all cases including resignation Labour Law 37/2015, Art. 45
Foreign branch registration parent company must have been established for at least 1 year Foreign Company Branches Regulation No. 2 of 2017, as amended by Regulation No. 4 of 2023
Note: a foreign worker is covered as a "foreign worker subject to Iraqi social security"; they may be exempt if covered by their home-country scheme. Disclaimer: general information, not legal advice. Al-Taswia Legal Services Company — www.al-taswia.com. Dated 15/10/2026. Related: https://www.al-taswia.com/labour-law/ · https://www.al-taswia.com/articles/investing-in-iraq-investment-law-13-2006/

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