Iraq labour law guide

A summary for orientation, not legal advice. It follows the federal law; the Kurdistan Region has its own rules. Figures such as the minimum wage change by decision, so check the official text or a lawyer before you act. Last checked: 26 September 2026.

At a glance

Topic	The rule
Working time	8 hours a day or 48 a week, with at least 24 hours of weekly rest
Overtime pay	At least 1.5 times the hourly wage by day; at least 2 times at night, on a rest day or in arduous or harmful work
Annual leave	At least 21 days on full pay after one year; 30 days for arduous or harmful work and for juveniles
Sick leave	30 days on full pay for each year of service, up to 180 days in total
Maternity leave	At least 14 weeks on full pay
Notice	At least 30 days; at least 7 days during probation
End-of-service pay	Two weeks' wages for each year of service, with exceptions
Social security	Worker 5%, employer 12%, state 8% (Law No. 18 of 2023)
Minimum age	15 years

Who the law covers

Labour Law No. 37 of 2015 came into force on 7 February 2016. It governs work in the private, mixed and cooperative sectors in federal Iraq. Public-sector employees fall under the civil service laws instead, and the Kurdistan Region applies its own labour rules.

The minimum age for employment is 15 (Article 7). Juveniles work shorter days and receive 30 days of annual leave.

Working time and overtime

Working time may not exceed 8 hours a day or 48 hours a week (Article 67), and every worker is entitled to at least 24 consecutive hours of rest each week. Managerial, security and confidential posts can follow hours set by ministerial instructions.

Overtime

Up to 4 hours a day in non-industrial work; in industrial shift work 1 hour a day, or up to 4 hours for preparatory or unusual work.
No more than 40 hours in 90 days, or 120 hours in 12 months.
Paid at least one and a half times the usual hourly wage for day work, and at least twice the hourly wage at night, on a rest day, or in arduous or harmful work.

Leave

Annual leave

At least 21 days on full pay after one year of service, and at least 30 days for arduous or harmful work. An agreement to give up annual leave is void.

Sick leave

30 days on full pay for each year of service, accumulating up to a total of 180 days.

Maternity leave

At least 14 weeks on full pay. Up to 8 weeks may be taken before the expected birth with a medical certificate, and at least 6 weeks must follow it.
Up to 9 months where the competent medical authority approves it, for a difficult or multiple birth or complications.
With the employer's agreement, an unpaid leave of up to one year to care for a child under one.
The mother returns to the same job, or an equal one with the same wage. The law gives no paternity leave.

Probation, notice and ending a contract

The contract states the basic wage with every increment and allowance, and when and where it is paid.
A probation period can be agreed; ending it needs at least 7 days' notice.
Otherwise, notice of at least 30 days before the termination date. Without it, the employer owes the wages for the notice period.
Dismissal for poor performance or misconduct follows a written warning; termination that skips the steps in the law is treated as unfair.
End-of-service pay is two weeks' wages for each year of service. It is not due in cases such as a serious fault causing material damage, forged documents, breach of contract or imprisonment for more than a year.

Wages and social security

Minimum wage

Set by the Council of Ministers on a ministry committee's proposal and reviewed from time to time. The sources below give IQD 350,000 a month; check the decision currently in force. Paying less makes the employer liable to pay the employee twice the shortfall.

Social security (Law No. 18 of 2023)

The Workers' Retirement and Social Security Law No. 18 of 2023 took effect on 26 November 2023, replacing the 1971 law. It covers the private, mixed and cooperative sectors and self-employed workers.

Who pays	Share of wages
Worker	5%
Employer	12%
State (for foreign employees, the employer pays it)	8%
Employer in the oil and gas sector	25%

Employers register each new worker within 30 days of hiring and file an annual statement of workers and wages.

Equal treatment

The law forbids discrimination on grounds including race, colour, sex, religion, sect, political opinion, origin, nationality, age, health and trade-union membership, and forbids sexual harassment at work. Breaches can bring up to six months' imprisonment and/or a fine of up to IQD 1 million.

Setting it up in Gridos

Each rule above is a setting you control, so it is applied the same way to everyone:

Leave: annual leave of 21 days, or 30 for chosen grades or jobs; sick and maternity leave as their own types with their own balances.
Overtime: rates of 1.5 and 2 set in the attendance rules and paid through the pay items.
Social security: the worker and employer shares set once for the company and applied in every run.
End of service: calculated from actual service dates in the final settlement.
Warnings and notice: warning letters from your templates, and the notice period followed in offboarding.

See how payroll works

Iraq labour law, in plain words.