KURDISTAN REGION · CALCULATION GUIDE
How Kurdistan Region gross salary becomes net salary
A separate regional flow supported by KRG guidance and an anonymised finance-workbook reconciliation.
Rules version IQ-KRI-2026.1 · Reviewed 2 October 2026
The standard monthly flow
- Start with monthly basic salary.
- Deduct employee social security at 5% when the employee is covered.
- Subtract the IQD 1,000,000 monthly tax threshold.
- Apply 5% income tax to the positive balance.
- Subtract both employee deductions to obtain net salary.
Worked example
At IQD 2,000,000 gross, employee social security is IQD 100,000. The remaining amount above the threshold is IQD 900,000, producing IQD 45,000 income tax. Estimated net salary is IQD 1,855,000. Employer social security is IQD 240,000, so estimated employer cost is IQD 2,240,000.
Why this is not the Federal Iraq formula
The Kurdistan Region operates a distinct payroll flow. Salary Ledger does not import Federal Iraq family-status allowances or progressive bands into this page. That separation prevents a common but material jurisdiction error.
Evidence and limitations
The 5% tax rate and IQD 1,000,000 threshold are published by the KRG service portal. The order of deductions is also supported by the anonymised payroll workbook supplied for validation. Employee-specific exemptions and registration status still require payroll records.