Employer cost of hiring in Iraq

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Mandatory employer contributions in Iraq

Employer cost at three salary levels

The examples use 1×, 2× and 4× Iraq’s 2025 GDP per person in local currency (7,032,583 IQD, World Bank) as reference salaries. GDP per person is not a wage; it is a neutral, cited yardstick for low, middle and senior pay.

Worked example

For a salary of 14,100,000 IQD a year, the employer adds about 1,692,000 IQD (12.0%) in mandatory contributions, for a total of 15,792,000 IQD, about $12,148 at the 2025 average exchange rate. The rate is roughly flat across salaries (12.0% to 12.0%), so on-costs scale with pay.

What is not included

• 25% for employers categorised as prime. PwC notes the contribution is computed on salaries as defined locally.

How to budget a hire in Iraq

1. Start from the gross salary you plan to offer in IQD.
2. Add the mandatory contributions above. The calculator applies caps and salary bands automatically.
3. Add benefits customary in Iraq (health cover, bonuses, extra month salaries) as a percentage in the calculator.
4. If you have no local entity, add an employer-of-record fee. Deel and Remote both list EOR from $599 per employee per month on their public pricing pages (checked 23 October 2026).
5. Convert to your budgeting currency with a current rate. The USD figures here use the World Bank 2025 average.

Compare Iraq with other countries in the any-country comparison, or see whether an EOR, contractor or own entity is cheaper.

Source: PwC Worldwide Tax Summaries: Iraq, other taxes, last reviewed 24 June 2026 (checked 23 October 2026). Exchange rate and GDP per capita: World Bank (2025, indicators PA.NUS.FCRF and NY.GDP.PCAP.CN). HireCost transcribes the rates; it does not invent or estimate missing ones.

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