How to hire remote employees in


Found someone in Iraq you’d like to hire, but confused about how you’re supposed to make it happen without paying thousands in fees? You’re in the right place. Read on to learn the fastest, easiest, most flexible way to hire remote talent in Iraq.

Country snapshot

Iraqi Dinar (IQD)

What to know before you hire in 


Laws about hiring are complicated, and the same is true in Iraq. But there are ways to sidestep the headaches—if your company hasn’t already established a physical presence in Iraq, you have two real options when it comes to hiring. We’ll detail both below.

If you want to successfully hire in 


, you have two options:

Hire talent as contractors

Laws about hiring contractors are significantly more simple in 


. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Panther for.

Hire talent as employees

This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in 


 is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.

Why hire independent contractors in 


Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in 



It’s the fastest way to hire globally

Hiring employees takes months, at the minimum. When you hire with Panther’s locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.

It’s a lot cheaper

It costs just $0 to sign up for Panther, then $49 per month to hire your contractors with Panther. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.

It’s more flexible for you & your team

Hiring contractors in 


 means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.

Can be less risky than hiring employees

Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.

Some people want to be employees

The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.

You might not have as much control over your talent

Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.

How can I pay people in 



If you’re hiring contractors in 


, you can pay them with Panther in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.

Hiring and paying your team in 


Hire and pay with Panther

Pay everyone with a single click
Get great currency conversion rates
Pay $0 in platform fees
Run payroll in seconds
Let Panther automatically create & store invoices
Let Panther automatically write locally-compliant contracts
Let Panther automatically file local tax documents

Hire and pay without Panther

Pay all your contractors individually
Do all currency conversions yourself
Shoulder the burden of platform fees
Spend hours each month making payments
Manually track & store invoices
Manually write & sign contracts
Manually file relevant tax documents

Let Panther save you from hiring headaches.

Sign up today for $0

If you want to hire employees in 


If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Iraq than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Iraq.

Taxes in 


Employer tax

Social Security

Statutory Contributions

Individual tax


Paid Time Off (PTO)

PTO is calculated by the:

  • One year of employment
  • Workers are entitled to 21 days of fully paid leave annually
  • This amount of leave increases incrementally the longer an employee works at your company
  • Employees working in difficult or dangerous conditions, such as work environments with health hazards, are entitled to 30 days of paid vacation each year
  • In Iraq, employees has full pay for feast days and official holidays that do not fall on a Saturday

Public Holidays

There are 13 public holidays with paid.

Sick Days

Employees are eligible to claim 30days of fully paid sick leave for every year of service, with a maximum cap of180 days.

After the 30-day mark, social insurance will cover any paid sick leave. Employees must show documented medical evidence to claim paid sick leave.

Maternity Leave

Employees can take 72 days of paid maternity leave if they are working in a company operating in Iraq.

However, the number of days can be increased based on the requirements of the employee.

Paternity Leave

The Labor Law does not grant fathers paternity leave.  any parent (male or female) is entitled to unpaid leave for up to three days to tend to a sick child under six years of age.

Parental Leave

In Iraq, any parent (male or female) is entitled to unpaid leave for up to three days to tend to a sick child under six years of age.

Other Leave

In Iraq, if the employee is involved in some hazardous activity like heavy equipment operation, etc., he will be entitled to 30 days of paid leave.

Marriage Leave

Employees can take leaves for marriage. Also, employees can take a leave even if their children are getting married.

These leaves can be extended but would be unpaid.

Bereavement Leave

Employees can take leaves if there is a death in their family but would be unpaid.


Termination Process

Iraq has a very complex system when it comes to the termination of employment. Like any other country, there are several guidelines for termination of employment in Iraq.

Therefore, you need to have a comprehensive knowledge of the system and its implications.

Following are the grounds of termination laid down by the Labor Law of Iraq:

  • A mutual agreement between the two parties, i.e., the employer and the employee
  • Expiration of a fixed contract.
  • Will of the employee
  • If the employee is incapacitated for more than six months due to illness.
  • In case the employee has some significant deformities becomes more than 75% incapacitated, he will be terminated.
  • The downfall of the company

The employee can terminate the employment contract without giving notice, in the following circumstances:

  • If the employer breached any of their obligations stipulated in the New Labour Law, or in the employer's rules of procedure, or in the employment contract.
  • If the employer has committed a offence or a misdemeanor against the employee or any of their family members (both within and outside of the workplace).
  • If there is a grave hazard threatening the employee's safety or health, provided that the employer is fully aware of this hazard and did not try to remove it.

Notice Period

Employers are required to provide at least 30 days advance notice in writing to employees and pay an end-of-service gratuity that ranges from the equivalent of two to 20 weeks of service depending on length of employment.

If the notice is not given, the employee is entitled to compensation amounting to their salary for the notice period.

Severance Pay

A severance payment of two weeks salary for each year of service and one month in case of unjustified termination is required.

The employee can also ask to be reinstated to their position instead of receiving a severance payment.

Probation Period

Probation period can be a month or two, but not more than three.

Employee requirements in 


Working Hours

The standard work week is 40 hours (Iraqi law 37 of 2015).

The maximum working hours are 48 hours per week (Iraqi law 37 of 2015 article 67).

The minimum rest duration per week is 24 hours.


Employees must be compensated for overtime with an additional 50% of their regular salary (if the overtime is carried out during the day) or an additional 100% (if the overtime is carried out at night, on a day of rest or if the work is considered to be arduous or harmful).

Overtime is capped atone to four hours per day, depending on the nature of the work.

Additionally, overtime is limited to 40 hours per 90 days and 120 hours per 12 months.

Overtime performed during the day is paid at a rate of50%, while overtime pay is doubled at night.

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