Iraq vs Iran

In Iraq, the minimum wage is ع.د1,823/hr ($1.40 USD). In Iran, it is ﷼692,731/hr ($1.02 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.

The average gross salary in Iraq is ع.د700,000/mo ($536.40 USD), compared to ﷼400,000,000/mo ($588.24 USD) in Iran. In USD terms, workers in Iraq earn approximately 10% less. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Iraq and Iran 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.

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 $3 in Iraq and $6 in Iran. 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.

Iraq has a longer standard work week at 48 hours, compared to 44 hours in Iran. Workers in Iraq work 48 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.

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 Iraq's perspective, this means goods and services are priced at a lower 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.