Middle East Payroll & Compliance Intelligence
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Iraq payroll & compliance

No GCC-style WPS. Payroll runs on social security contributions and a progressive income tax capped at 15%, administered through the labour and retirement authorities.

No GCC-style WPS   Jurisdiction: Iraq  ·  Currency: IQD  ·  Region: Iraq  ·  Last reviewed: 19 July 2026

Payroll obligations at a glance

Wage Protection
Employers contribute to the state pension and social-security scheme and withhold income tax; no WPS salary-file regime.
Social security
Employer 12% of salary (25% for employers categorised as prime, e.g. oil and gas); employee 5%.
Income tax
Bands from 3% (up to IQD 250,000) rising through 5%, 10% and 15% at the top.
Minimum wage
Federal minimum wage IQD 350,000 per month (federal rate not confirmed as updated for 2026).
Currency & cadence
IQD, monthly; social security and income tax withheld and remitted per the labour and retirement authorities.

Employer checklist

Official portals & legislation

Ministry of Labour & Social Affairs (MOLSA) ↗

Governance & sourcing

Jurisdiction
Iraq (Iraq)
Last reviewed
19 July 2026
Review cadence
Monthly, and on any material change
Effective basis
Rules in force at the review date

Primary sources are the official portals listed above. Important exceptions: figures vary by entity, free zone, sector and employee nationality, and some rules have transitional arrangements, so confirm the position for your specific case. See our methodology for how we prioritise sources, and please report a change if a rule has moved.

Frequently asked questions

Is there a WPS in Iraq?
No. Payroll compliance is through social-security contributions and income-tax withholding, administered by the labour and retirement authorities.
What are social security rates in Iraq?
Employer 12% of salary (25% for prime sectors such as oil and gas) and employee 5%.
Is salary taxed in Iraq?
Yes. A progressive income tax applies with a top rate of 15%, plus a federal minimum wage of IQD 350,000 per month.
Last reviewed: 19 July 2026. General information, not legal or tax advice. Rates and rules change frequently and depend on entity, free zone, sector and nationality; confirm against the official sources above before you file or pay. Use the calculators to model gratuity and employer cost, or compare providers.