Iraq: New Social Security Contribution Obligations

Employers are now required to make social security contributions for foreign workers covered by their home country's social security system. Previously, employers were exempt from making social security contributions for such employees – provided they could demonstrate proof of the employee’s home country social security arrangements to the authorities. The contributions are 3% of monthly salaries (including any allowances) for non-oil and gas sector employees; and 7% of monthly salaries (including any allowances) for oil and gas sector employees. Following this reform, many employers of foreign nationals will need to account for increased social security contribution obligations.