- 5% deducted from the worker's pay.
- 12% from the employer, or 25% for private and mixed-sector employers whose profits come from selling Iraqi oil and hydrocarbons.
- 8% from the state, except for foreign workers, where the employer pays this share instead (Art. 14(Second)).
Rates in detail (Art. 14(Second))
| Payer | Rate | Provision |
|---|---|---|
| Worker | 5% of wages and allowances | 14(Second)(a) |
| Employer (general) | 12%: 8% pension, 1% injury and sickness, 1% unemployment, 2% health and maternity | 14(Second)(b)(1) |
| Employer (private/mixed sector, profits from selling Iraqi oil and hydrocarbons) | 25% | 14(Second)(b)(2) |
| State | 8%; not for the 25% category or for foreign workers, where the employer pays it | 14(Second)(c) |
Company duties
- Worker data: file insured workers' names, birth dates, wages and trainees on the Department's forms, matching the Labour Law records (Art. 22(First)).
- Contractors and clearance: state finance departments will not pay an employer, contractor or investor until it proves a clearance from the social-security department (Art. 21(Second)).
- Foreign workers: the employer bears the 8% state share (14(Second)(c)). A work fee of IQD 2,000,000 is paid once per foreign worker entering Iraq, collected by the Fund (Art. 106(First)).
Related: Work permits · Corporate tax · Labour law · Employer social security article
FAQ
How much does the employer pay? 12% of wages and allowances, or 25% for private/mixed-sector employers whose profits come from selling Iraqi oil and hydrocarbons (14(Second)(b)). What does the worker pay? 5%, deducted from pay (14(Second)(a)). Who pays the state share for foreign workers? The employer, on top of its own share (14(Second)(c)). Is the IQD 2,000,000 fee repeated on renewal? No. It is paid once per foreign worker entering Iraq (106(First)).
About the author
Othman Al-Juboori: Iraqi lawyer, expert in Iraqi labour law, Member of the Iraqi Bar Association, and founder and Managing Director of Al-Taswia Legal Services Company. The firm has a team of 15 lawyers working from its Baghdad office. Author page Sources last checked: 16 October 2026.
General information, not legal advice.