HRsolution » COUNTRIES » Iraq

Population

Iraq has a population of approximately 44 million people (as of 2023). The population is ethnically and religiously diverse, with Arabs being the largest ethnic group, followed by Kurds, who predominantly live in the north. There are also minorities such as Turkmens, Assyrians, and Armenians. The two largest religious groups are Shia and Sunni Muslims.

Capital

The capital of Iraq is Baghdad, one of the oldest cities in the world with a long history as a cultural and economic center. Baghdad is the political heart of the country and the most populous city.

Economic Strength

Iraq possesses vast oil reserves, which form the backbone of its economy. Oil is the primary source of revenue for the country, accounting for about 90% of government income. Despite these natural resources, Iraq faces significant challenges from decades of conflict, corruption, and political instability, which have hindered economic growth. Agriculture and the service sector also play roles in Iraq’s economy, though they are less significant compared to the energy sector.

Culture

Iraq’s culture is rich and diverse, with roots tracing back to ancient Mesopotamia, one of the world’s earliest civilizations. The country is known for its literature, poetry, art, and music. Iraqi cuisine is an important part of the culture, featuring dishes like Masgouf (grilled fish) and Kebab. Islamic holidays such as Eid al-Fitr and Eid al-Adha are widely celebrated. The culture is heavily influenced by religion, with Islam playing a dominant role.

Currency

The official currency of Iraq is the Iraqi Dinar (IQD).

Health Insurance and Social Security System

Iraq provides state-funded healthcare to its citizens, which is theoretically free. However, the healthcare system is severely affected by corruption, lack of resources, and the impacts of decades of conflict. Iraq has a social security system that offers pensions and certain benefits, such as disability pensions, but many workers, especially those in the informal sector, are not fully covered.

Employer Costs

Employer costs in Iraq include social security contributions for pensions and other government benefits. The employer’s contribution is generally around 12% of the employee’s gross salary. Costs may rise with voluntary benefits, such as additional health insurance or transportation allowances.

Salary and Bonuses

Salaries in Iraq vary greatly depending on the sector and region. The public sector often offers stable wages, while private sector salaries can fluctuate. Bonuses are not as formally regulated but are common in certain sectors, especially around religious holidays or upon project completion.

Payroll

Employers are required to provide employees with monthly payslips, detailing the base salary, allowances, and deductions such as taxes and social security contributions. In many areas, especially rural regions and the informal sector, payroll is still handled in cash.

Public Holidays

Iraq has several public holidays, both religious and national. Key holidays include:

  • New Year’s Day (January 1)
  • Eid al-Fitr (End of Ramadan)
  • Eid al-Adha (Festival of Sacrifice)
  • Republic Day (July 14)
  • Ashura (Islamic mourning ceremony)

Religious holidays follow the Islamic lunar calendar, so the dates vary each year.

Working Hours

The standard working hours in Iraq are generally 40 hours per week, spread over five or six days. The public sector often has a shorter workweek, while the private sector may have more flexible hours. Overtime is typically paid only in specific industries.

Vacation

Employees in Iraq are entitled to 20 to 30 days of paid annual leave, depending on the length of service. In addition, employees get time off on public holidays. Vacation is usually granted in agreement with the employer.

Sick Leave

Employees who are unable to work due to illness or injury are entitled to sick leave. During this period, they continue to receive their salary, though the duration of payment and the percentage of salary covered depend on the length of the illness and the employment contract. An official medical certificate is generally required to claim sick leave.

Termination/Severance

Termination rules in Iraq vary depending on the type of employment and the length of service. In general, both employees and employers must provide a notice period, usually between one and two months. In cases of involuntary termination, employees are entitled to severance pay, typically amounting to half a month’s salary per year of service. Labor laws offer protection against arbitrary dismissal, although enforcing these rights can be challenging.

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