The Iraqi labor code had regulated the lowest pay that private sector workers received in the past. The official monthly minimum wage in Iraq used to be IQD 350,000 (Iraqi Dinars). Reports stated that this number was last raised in November 2022.
That minimum wage applied to all industries till 2024. The Iraqi Kurdistan Region regularly mandated a different, lower minimum wage. The most recent report said it was IQD 280,000 per month. A government-created body reviewed the minimum wage, as required by law.
There is no national minimum wage in Iraq as of January 1, 2025. Various employers set wages, and they might be very different based on the industry and the location.
Overview of Iraq’s labor market
Before, the Iraqi labor legislation had established the minimum salary for the private sector. The official minimum monthly wage in Federal Iraq was IQD 350,000.
The Kurdistan Regional Government (KRG) determined a different rate for unskilled workers. The law said that wages were to be reviewed every two years, often based on the cost of living in 2024.
In the last few years, the average wage in Iraq has been about $320. But there is no minimum wage in Iraq that applies to the whole country.
Understanding minimum wage regulations in Iraq
It was necessary to know and follow the laws of minimum wage in Iraq till 2024. In Iraq, not paying the minimum wage meant paying fines that were twice the minimum wage for the month, and paying the worker. These ensured that the labor law was followed, which helped avoid legal problems and damage to the company’s reputation.
Employee Minimum Wage for the Iraqi Public vs. the Private Sector
The private sector’s minimum wage in Iraq was set by the federal government’s legislation until 2024. Different government salary scales set the pay for public sector jobs. It was usually far higher than the minimum salary in the private sector.
Comparison of Iraqi wage structures
There is an enormous variation in compensation in Iraq. Public sector positions pay more, offer greater stability, and have better benefits. The private sector has more salary differences based on the industry. For example, Oil & Gas pays the most.
Specific allowances or employee benefits
In 2015, the Iraqi labor law required Social Security payments, pensions, and disability benefits. Employers also typically offer individual medical coverage, travel allowances, and residence allowances, particularly to foreign workers in specialized roles.
Salary Payment Regulation Under Iraqi Labor Law
The Iraqi labor law protects wage payment in certain ways, which is a basic right:
Payment Cycle
At the end of the month, employers have to pay their monthly wages. Individuals who get a weekly wage get paid by the end of the week.
Potential Delay
The legislation clarifies that payments can only be late for a maximum of five days after the end of the pay cycle.
Payment Methods
If both parties agree in writing, payment can be made by check or bank transfer in Iraqi Dinars (IQD).
Wage Reductions
Reductions are only allowed in certain situations when the law permits, including Social Security contributions of five percent for the employee and income tax. In most cases, total deductions can’t be over twenty per cent of a worker’s pay.
Salary Statement
When an employer pays a worker, they must give them a written statement. It explains the different parts of their compensation, such as wages, allowances, and every deduction.
Wage Protection and Legal Requirements in Iraq
The law specified that workers must be paid on time, within five days of the end of the pay period. Employers can’t make arbitrary deductions. If they don’t follow the requirements, they could face penalties. The Labor Court settles disagreements.
Minimum Wage for Foreign Workers in Iraq
The Iraqi labor law minimum wage covers local and foreign workers in the private sector. International workers also have the right to basic pay every month. All foreign workers must have a valid work permit, which is extremely crucial. If employers break the rules, they are liable for paying fines. It makes it clear that all employers and employees must follow the rules.
Employee Rights Under Iraqi Labor Law
Iraqi labor law gives workers in the private sector various important safety features. Employees have the right to a fair wage, and women must be paid the same amount for labor of a similar role.
The maximum number of work hours in a week is 48, and the maximum number of work hours in a day is 8. Workers also have the right to paid time off every week and at least twenty-one days of paid vacation each year. The law makes it illegal to discriminate, force people to work, or sexually harass people at work. Workers can file complaints with the Labor Court if they feel they have been wrongfully treated. It also protects the right to freedom of association. Workers can create and join separate labor organizations to negotiate as a group.
Updates & Recent Changes in Iraq’s Minimum Wage
The Iraq labor law updates state that as of January 1, 2025, there is no minimum wage in Iraq that applies to the whole country. Employers set wages, and they might be very different based on the industry and the area.
In 2025, the typical monthly wage in Iraq will be about 320 USD. Employees in larger enterprises may make more like 440 USD a month, while those in minor businesses may make more like 190 USD. Salaries depend on expertise, profession, and qualifications.
Individuals who work in the oil and gas industry, particularly engineers, can make more money. Location is also important; earnings are usually greater in Baghdad and the oil-rich southern regions than in rural or northern places.
In 2025, Iraq’s economy is expected to have modest inflation, a decreasing unemployment rate, and consistent GDP growth. Even though the government is trying to diversify, it is still heavily dependent on oil. It is starting to affect wages and job opportunities.
Conclusion
The legal minimum wage rules in Iraq were imposed in previous years. The statutory salary limit was 350,000 Iraqi Dinars (IQD) per month until 2024. The federal minimum wage applied to all workers who were protected by the labor legislation, no matter what their job or industry was. As of January 2025, there is no minimum wage in Iraq that applies to the whole country. Employers set wages, and they might be very different depending on the sector and locality. Predictions for 2025 indicate that the state of the economy will probably have an effect on salary increases. Significant variables will include the amount of foreign investment, the growth of infrastructure, the overall safety, and stability. While substantial pay raises may not be foreseeable, competitive pressures in some high-demand fields are expected to keep driving salaries higher for skilled workers. For the current situation and regulatory changes in Iraq’s wage system, you must consider a professional consultant. Payroll Middle East will be your trusted partner for all regulatory procedures in Iraq and the Middle East. Contact us now for further details.
FAQs
Does the minimum salary differ between skilled and unskilled employees?
Yes, these salary estimations differed between skilled and unskilled employees. However, recently, these wage estimations have been based on several factors. However, there is no minimum wage in Iraq.
How often does the Iraqi government revise its minimum pay rules?
They revised the minimum wage in Iraq every two years till 2024. But this rule has not applied since 2025.
What is the present minimum pay in Iraq?
Currently, there is no minimum wage in Iraq since January 2025.
Does overtime compensation apply in addition to the minimum pay?
Yes, it was applied till 2024 with minimum wages in Iraq.
Does the minimum pay in Iraq apply to all workers?
It was mandatory in previous years. But now wages can be estimated based on various factors.
