Iraqi labor law: the rules that shape every placement.
A clear, current reference for the core legal framework, from the 2015 Labor Law to the 2023 social security reform and the 80/20 quota in force since late 2024.
Employment in Iraq is governed by Labor Law No. 37 of 2015, with social security under Law No. 18 of 2023. Since late 2024, an 80/20 quota requires at least 80% Iraqi staff. Foreign companies cannot self-sponsor and must work through a licensed agency such as Albadyea United (License №35).
Two laws govern most employment in Iraq.
The 2015 Labor Law sets the daily rules; a 2023 reform replaced the social security regime.
Governs hours, leave, contracts, severance and termination across the private sector.
Replaced the prior social security regime. New combined contribution rates and foreign-worker registration fees.
The 80/20 rule changes the math.
Since late 2024 Iraq enforces an 80% Iraqi-employment ratio in the federal private sector.
At least 80% Iraqi nationals; foreign employees capped at 20% of headcount.
Kurdistan Region applies its own rule: maximum 25% foreign employees in private sector.
Specific provisions apply to oil & gas operators, the 80% Iraqi requirement still applies.
Foreign companies cannot self-sponsor.
Bilingual, signed in source country, before travel.
Iraqi law requires Arabic; foreign workers sign a bilingual Arabic + English contract before travel.
One probation period per employer, not renewable. Termination during probation requires 7-day notice.
Residence permit and worksite onboarding completed within 7 days of arrival.
Frequently asked questions
What law governs employment in Iraq?
Private-sector employment in Iraq is governed by Iraqi Labor Law No. 37 of 2015, which sets the rules on working hours, leave, contracts, termination and severance. Social security is governed separately by the Workers' Retirement and Social Security Law No. 18 of 2023.
What is the 80/20 rule in Iraq?
Since late 2024, Iraq's federal private sector must employ at least 80% Iraqi nationals, capping foreign employees at 20% of total headcount. This 80/20 quota replaced the previous 50/50 rule, so older content quoting 50/50 is out of date.
Does the Kurdistan Region have different labor rules?
Yes. The Kurdistan Region of Iraq (KRI) applies its own labor regulations, including a separate cap of 25% foreign employees in the private sector. Placements are processed under federal or KRI authority depending on the worksite location.
Can a foreign company sponsor its own workers in Iraq?
No. Foreign companies cannot self-sponsor workers in Iraq. They must either incorporate an Iraqi entity registered with the Ministry of Labor (a multi-month process) or work through a licensed Iraqi manpower agency such as Albadyea United, which holds License №35.
What language must Iraqi employment contracts be in?
Iraqi law requires employment contracts in Arabic. Foreign workers sign a bilingual Arabic and English contract, approved by the Ministry of Labor, in their source country before travelling to Iraq.
Is the old 50/50 foreign worker quota still valid?
No. The 50/50 ratio was replaced by the 80/20 quota in late 2024. Employers must now plan for at least 80% Iraqi nationals in the federal private sector, or at least 75% in the Kurdistan Region.
Workers, visas, housekeepers, let's talk.
From a single housekeeper to a 500-strong project workforce, get a tailored quote within 24 hours. We answer in English, Arabic and French.
Frequently asked questions
Quick answers about how we work, what we deliver, and how to start with us.
What law governs employment in Iraq?
Private-sector employment in Iraq is governed by Iraqi Labor Law No. 37 of 2015, which sets the rules on working hours, leave, contracts, termination and severance. Social security is governed separately by the Workers' Retirement and Social Security Law No. 18 of 2023.
What is the 80/20 rule in Iraq?
Since late 2024, Iraq's federal private sector must employ at least 80% Iraqi nationals, capping foreign employees at 20% of total headcount. This 80/20 quota replaced the previous 50/50 rule, so older content quoting 50/50 is out of date.
Does the Kurdistan Region have different labor rules?
Yes. The Kurdistan Region of Iraq (KRI) applies its own labor regulations, including a separate cap of 25% foreign employees in the private sector. Placements are processed under federal or KRI authority depending on the worksite location.
Can a foreign company sponsor its own workers in Iraq?
No. Foreign companies cannot self-sponsor workers in Iraq. They must either incorporate an Iraqi entity registered with the Ministry of Labor (a multi-month process) or work through a licensed Iraqi manpower agency such as Albadyea United, which holds License №35.
What language must Iraqi employment contracts be in?
Iraqi law requires employment contracts in Arabic. Foreign workers sign a bilingual Arabic and English contract, approved by the Ministry of Labor, in their source country before travelling to Iraq.
Is the old 50/50 foreign worker quota still valid?
No. The 50/50 ratio was replaced by the 80/20 quota in late 2024. Employers must now plan for at least 80% Iraqi nationals in the federal private sector, or at least 75% in the Kurdistan Region.
Still have questions? We answer in English, Arabic and French within 24 hours.
Contact us →