Iran Iraq

Updated 2026-05-04

Iran

Minimum Wage

﷼692,731 /hr

$1.02 USD

Avg. Gross Salary

﷼400,000,000 /mo

Iraq

Minimum Wage

ع.د1,823 /hr

$1.40 USD

Avg. Gross Salary

ع.د700,000 /mo

Min wage: -27% Iran vs Iraq Avg. salary: +10% Iran vs Iraq

Iran, a lower-middle-income economy, and Iraq, classified as upper-middle-income, take different approaches to wage policy. Average salaries are higher in Iran at $588/mo compared to $536/mo in Iraq. Iran has the tighter labor market, with unemployment at 8.3% compared to 15.5%.

From Iran's perspective: adjusting for purchasing power, Iran's minimum wage buys more than Iraq's. The PPP-adjusted hourly rate in Iran is $6 international dollars, compared to $3 in Iraq. Iran has higher GDP per capita ($19,874 vs $14,464). Iran's unemployment rate is 8.3% compared to Iraq's 15.5%.

Detailed Comparison

Detailed wage comparison between Iran and Iraq
Metric	Iran	Iraq	Diff
Minimum wage /hr	﷼692,731 $1.02	ع.د1,823 $1.40	-27.1%
Minimum wage /day	﷼5,541,850 $8.15	ع.د14,583 $11.17	-27.1%
Minimum wage /mo	﷼166,255,500 $244.49	ع.د350,000 $268.20	-8.8%
Minimum wage /yr	﷼1,995,066,000 $2,933.92	ع.د4,200,000 $3,218.39	-8.8%
Avg. gross salary /mo	﷼400,000,000 /mo $588.24	ع.د700,000 /mo $536.40	+9.7%
Median individual income /yr	﷼1,440,000,000 /yr $2,117.65	ع.د3,360,000 /yr $2,574.71	-17.8%

Percentage differences are based on USD equivalent values. Positive means Iran is higher.

Work Week

Iran: 44 hrs/wk standard

Max 48 hrs/wk

Overtime : 1.4x pay

Article 51 of the Labour Law sets ordinary working hours at 44 hours per week (8 hours/day, 6 days, with 4 hours on the sixth day — or equivalent arrangements). Maximum including overtime is 48 hours/week. Overtime is compensated at 140% of the ordinary hourly rate. Friday is the official weekly rest day. Workers in hazardous conditions have reduced hours.
Iraq: 48 hrs/wk standard

Max 48 hrs/wk

Overtime : 1.5x pay

Labour Law No. 37 of 2015 sets maximum ordinary working hours at 8 per day / 48 per week. Friday is the weekly rest day. Overtime is compensated at 150% of normal hourly rate. Work on official holidays is paid at 200%. Ramadan working hours are reduced. Public sector employees typically work ~40 hours/week in practice.

• WAGE TRAJECTORY (USD/hr)

Iran Iraq Source: wage.is · USD equivalent/hr

Year	Iran (USD)	Iraq (USD)
2015	—	$268/hr
2020	$25/hr	$268/hr
2021	$40/hr	—
2022	$84/hr	$268/hr
2023	$196/hr	—
2024	$265/hr	$268/hr
2025	$153/hr	—
2026	$244/hr	—

What This Means for Workers

A minimum wage worker in Iran earns 37% less per hour in USD terms than one in Iraq. However, after adjusting for cost of living, Iran's minimum wage provides more purchasing power. Standard work weeks differ: Iran mandates 44 hours while Iraq mandates 48 hours. A minimum wage worker's weekly earnings in Iran are $45 vs $67 in Iraq.

See this comparison from Iraq's perspective: Iraq vs Iran

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Frequently Asked Questions

Is the minimum wage higher in Iran or Iraq?

In Iran, the minimum wage is ﷼692,731/hr ($1.02 USD). In Iraq, it is ع.د1,823/hr ($1.40 USD). Iraq has the higher rate by 37% in USD terms. That nominal gap does not account for local prices; see the purchasing power comparison below for a cost-of-living-adjusted view. Workers in Iran may retain a larger share of their earnings if prices there are lower.

How much more does the average worker earn in Iran compared to Iraq?

The average gross salary in Iran is ﷼400,000,000/mo ($588.24 USD), compared to ع.د700,000/mo ($536.40 USD) in Iraq. In USD terms, workers in Iran earn approximately 10% more. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Iran and Iraq is shaped by differences in industry composition, labor productivity, and the overall cost of living in each country. Workers in Iran earn more in nominal terms, though how far that income stretches depends on local prices in Iraq.

Which country has better purchasing power for minimum wage workers, Iran or Iraq?

After adjusting for local prices using purchasing power parity (PPP), minimum wage workers in Iran can afford more than those in Iraq. The PPP-adjusted rate is $6 in Iran and $3 in Iraq. PPP converts wages into equivalent US dollar buying power, accounting for what a unit of currency actually buys locally. The 75% purchasing power gap means that even if the nominal wage in Iraq appears competitive, minimum wage workers there face greater constraints on day-to-day spending.

How do work hours compare between Iran and Iraq?

Iraq has a longer standard work week at 48 hours, compared to 44 hours in Iran. Workers in Iran work 44 hours per week by law. Longer mandatory hours can offset a nominally higher wage; a worker in Iran working fewer hours may have comparable or better effective hourly earnings depending on the wage levels of each country. Total annual compensation depends on both the wage rate and the number of hours required.

What is the cost of living difference between Iran and Iraq?

While direct cost of living data varies by source, GDP per capita (PPP) gives a useful proxy for overall economic level. Iran has the higher GDP per capita at $19,874, which is 1.4x that of Iraq at $14,464. From Iran's perspective, this means goods and services are priced at a higher economic level. A higher GDP per capita generally correlates with higher wages, higher consumer prices, and greater availability of goods and services. Workers moving between these two countries should expect significant differences in rent, food, and transportation costs.