FEDERAL IRAQ · SOCIAL SECURITY
Federal Iraq social-security contributions explained
How the registered contribution wage produces the employee deduction and employer cost.
Rules version IQ-FED-2026.1 · Reviewed 2 October 2026
Rates used by Salary Ledger
| Party | Standard rate | Where it appears |
|---|---|---|
| Employee | 5% | Deducted from gross pay |
| Employer | 12% | Added to employer cost |
| Oil and hydrocarbon employer | 25% | Optional employer-cost setting |
The contribution wage and ceiling
Law No. 18 of 2023 ties contributions to the accredited wage and limits it to five times the minimum wage. The calculator's current ceiling is IQD 1,750,000. This is also the ceiling observed across every contributing record in the September finance workbook: the maximum employee deduction is IQD 87,500 and the maximum standard employer contribution is IQD 210,000.
Why employer cost is higher than gross pay
The employer contribution is not withheld from the employee. Salary Ledger therefore shows net salary and total employer cost as different totals. For a standard employer, total employer cost equals gross salary plus the 12% contribution on the eligible wage.
Checks before relying on the result
- Confirm the employee is covered and registered.
- Confirm the wage recorded for social-security purposes.
- Confirm whether the employer belongs to the oil and hydrocarbon category.
- Check for a new minimum wage because the statutory ceiling is expressed as a multiple of that amount.