# Iraq Government Formalizes Contract Workers

The Iraqi government plans to transition contract and daily wage workers to permanent government payroll status as part of the 2027 federal budget, with the draft expected to be presented to parliament by October 15, 2026. This formalization affects multiple sectors including security and education, reflecting a significant expansion of the public payroll and a shift toward stabilizing government employment. Finance Minister Falih al-Sari confirmed the process has moved from demands to official procedures, signaling imminent implementation.

- This transition will impact procurement planning by reducing reliance on contract labor and increasing permanent staffing budgets across ministries such as Interior and Education.
- Contractors currently providing services in affected sectors should anticipate changes in contract opportunities as roles shift to permanent government employees.
- Procurement professionals should prepare for adjustments in workforce management, budgeting, and contract structuring aligned with the new payroll policies.
- Organizations engaged in government workforce solutions may find opportunities to support the transition process, including payroll system updates and human resources consulting.

**Jurisdictions:** federal
**Industries:** Professional Services
**Topics:** Regulatory Compliance
**Published:** September 20, 2026

### Government Entities
- Iraq Ministry of Finance
- Iraq Parliament Finance Committee
- Iraq Interior Ministry
- Iraq Education Ministry

### Key Quotes
> The file had moved "from the stage of demands to the stage of official procedures" by being placed in the draft.
> — Falih al-Sari, Finance Minister

### Sources
- [
		Contract workers to be made permanent in 2027 budget			](https://en.964media.com/52833) - 964media