KURDISTAN REGION · SOCIAL SECURITY

Kurdistan Region social-security contributions

How the 5% employee and 12% employer contributions affect net pay and employer cost.

Rules version IQ-KRI-2026.1 · Reviewed 2 October 2026

Standard contribution rates

Employee deduction5%Subtracted from monthly basic salary

Employer contribution12%Added to employer cost

For an employee with IQD 1,400,000 basic monthly salary, the standard employee deduction is IQD 70,000 and the employer contribution is IQD 168,000. The employer contribution never reduces the employee's net salary.

Connection to the tax calculation

Salary Ledger deducts employee social security before calculating the amount above the IQD 1,000,000 tax threshold. Turning off social security in the calculator represents a record that is not covered; it is not a suggestion that coverage is optional.

Payroll verification checklist

Confirm registration and the wage basis in the employee record.
Check that 5% and 12% are calculated from the same basic salary.
Keep employer contributions outside the employee-deduction total.
Recheck the tax calculation after any correction to the employee contribution.

Source

The rate pair is reported by the Kurdistan Regional Government and is consistent with the finance workbook supplied for validation.