The Ministry of Labor and Social Affairs continues to push forward with its national strategy to localize the private sector workforce in Iraq, aiming to expand job opportunities for the Iraqi population under current employment law.

For years, the Ministry has required companies to adhere to a 50:50 employment quota, mandating that one Iraqi worker be employed for every foreign worker.

By the end of 2024, the Ministry has escalated its enforcement by introducing a stricter 80:20 Iraqi employment quota, requiring companies to hire four Iraqi workers for every one foreign employee. This regulation, under Iraq labour law, applies across the private sector and represents a significant step toward workforce nationalization.
According to the Ministry’s spokesperson, inspection teams will be dispatched regularly to company offices and work sites to ensure full compliance with this law. Non-compliant companies, hiring foreign workers, will face significant penalties.

This shift represents a major step in Iraq’s evolving labor and employment law, aligning with broader national goals of economic development and workforce localization. While certain labor law exceptions apply to oil companies under Decision 245, the 80% Iraqi employment requirement still remains applicable.
For businesses looking to hire foreign staff or navigate foreign worker visa and work permit procedures in Iraq, it’s essential to stay updated with current Iraq labor law regulations.

For more details on work permits and legal requirements, visit our Work Permits page.