Economic Overview, OPEC's #2 Producer & Major Infrastructure
Iraq combines immense petroleum reserves and energy export revenues with sweeping nationwide infrastructure reconstruction.
Key Economic Sectors
- Petroleum & Petrochemicals: Major supergiant oilfields (Rumaila, West Qurna, Majnoon) and downstream energy.
- Infrastructure & Engineering: Power plants, ports (Grand Faw Port), highways, and housing developments.
- Telecoms & Digital Banking: Expanding 4G/5G mobile networks and digital payment ecosystems.
Employment Contracts, Labour Law No. 37/2015 & National Quotas
Regulated by Labour Law No. 37 of 2015.
- National Workforce Quota: At least 50% (and up to 80% in oil & gas) of an enterprise's workforce must be Iraqi citizens.
- Probation Period: Maximum statutory probation is 3 months.
Working Hours, Overtime & Rest Periods
- Standard Hours: 40 to 48 hours per week (8 hours/day).
- Overtime Surcharges: Minimum 150% (1.5× base wage) for daytime overtime; 200% (double time) for night work and on rest days/public holidays.
Annual Leave, Public Holidays & Maternity Protections
- Annual Paid Vacation: Minimum 20 working days per year (increases to 30 working days for arduous or hazardous work).
- Public Holidays: 14 official national and religious holidays.
- Maternity Leave: 14 weeks (98 days) fully paid leave provided by the employer and social security.
Termination, Notice & Severance Indemnity
- Notice Periods: Minimum 30 days written notice.
- Severance Pay: End of service compensation calculated under Labour Law Article 45.
Why Use an Employer of Record (EOR) in Iraq
- Rapid Energy Sector Deployment: Onboard petroleum engineers and logistics coordinators in Basra, Baghdad, or Erbil in days.
- MOLSA & GCT Compliance: Automated management of social security remittances and local payroll tax declarations.
- Work Visa & Security Clearances: EOR assists with Ministry of Interior work visas and residency permits.
Hiring in Iraq? Key Resources
Whether you are evaluating entity setup vs. using an Employer of Record, or looking for the best international payroll solution, our guides give you transparent benchmarks:

