Average Salary: Working in Iraq worth the risks?

It might surprise most Americans to learn that there are over 25,000 private contractors in Iraq. These contractors make up the third largest international force in the war-torn country, behind U.S. military and U.K. troops. For this reason, private contractors are often called the “shadow army in Iraq .”

Many jobs that were traditionally performed by the U.S. military - truck driving, security, laundry and food services - have been farmed out to private contractors. The idea is if these military jobs are “outsourced” to contractors, then the U.S. military is freed up for armed conflict.

According to our PayScale salary survey, the average wages for truck drivers in Illinois are around $45,000. If that same trucker works for a private contractor in Iraq, he will reportedly have a starting salary range of $100,000, but are the dangers worth it?

Private Contractor Tactical Training

Private contractors in Iraq, such as truck drivers wear only a flak jacket as they face ambushes, machine gunfire and improvised explosive devices along the roads. Trucks may also not have armor, adding more risk to this high salary range position.

Driving a truck in Iraq is a high risk, high salary range job.  There is a big difference in risk between typical high risk jobs like fishing in the gulf of Alaska and working in a hot war zone. Below I will look at each extreme, and see how different risks change the calculation for truck drivers in Iraq.

Private Contractor vs Household Employee

Risk/reward is a tricky calculation, and human beings are generally very bad at estimating the cost of risk. For example, is it a good deal for a 30-year-old truck driver with a family to support to go to Iraq for an extra $50,000 a year? Assume he could have worked another 35 years for an average salary of $45,000/year. If he dies in Iraq, his family loses 35 x $45,000 = $1.5 million in income.

This is where the tricky risk calculations come in. Say he plans to stay in Iraq for 2 years, bringing home an extra $100,000:

• If his risk of death is 1.5 in 1000 per year (same as fishermen), the "expectation value" of the future income he risks losing is 2 years x 0.15% x $1.5 million = $4,500. Given he would earn $100,000, this looks like a risk worth taking.
• If the risk is 10X that of fishermen, then he risks 2 x 1.5% x $1.5 million = $45,000. This is no longer a slam-dunk deal; the truck driver is now only making a little more than twice what he is risking.
• If the risk is 100X that of fishermen (15% a year), he is risking $450,000 to earn $100,000. This is not the way to make more money for his family.

Above Average Wages for Truck Drivers, but...

Death isn't the only possible outcome. The US troops are injured at roughly 8X the rate they are killed in Iraq. If the truck driver is injured so that he no longer can work, his family still loses his future income.

How likely is the worst (15%) case above? For comparison, the US had an average of about 150,000 ground troops in Iraq during 2005. About 6800 were injured or killed that year. This is a casualty rate of 4.5%. If truck drivers in Iraq have the same risk, then the truck driver from Illinois is risking $135,000 in future income to earn $100,000 extra.

Halliburton Jobs in Middle East, Legal Recourse?

Life insurance for someone working in a war zone is hard to get, and the truck driver's family is unlikely to have other legal or financial redress like workman's compensation. For example, a lawsuit against Halliburton brought by the families of truckers killed in an ambush near Baghdad, in April 2004, was thrown out of court.

In the ruling, U.S. District Judge Gray H. Miller said that the U.S. military played a major role in sending the convoy and that it was not the court’s place to second-guess the Army’s orders. "The contracts show that the Army, not the defendants, was responsible for the security of the convoys," Judge Miller wrote.

Overtime Payment Government Contract?

Another downside is that there is no overtime pay for private contractors in Iraq. In a class action lawsuit against Halliburton for overtime, workers claimed that they were working more than 100 hours a week and not receiving overtime, even though a Pentagon contract called for overtime pay in Iraq.

However, U.S. District Court Judge Melinda Harmon ruled that Halliburton did not have to pay overtime, because U.S. laws governing military contracts say that only workers employed inside the United States are subject to US overtime pay laws.

Personally, if I were the truck driver, I would go back to school and learn to be a Clinical Research Associate. According to PayScale salary survey data, this job pays an average salary of $50,000 to start and can be over $90,000/year with 10 years of experience. The biggest risk is a paper cut.

How does your salary rank against the contractors in Iraq? Is it time to move to Baghdad, or stay home? Find out with our salary calculator.

Cheers,

Dr. Al Lee

• Curious about salaries? Email Dr. Salary
• Compare your salary: Get a free Salary Report

Comments

[Fred]

Hey Al - this could have been an interesting analysis. But it misses several key facts such as (1) Most importantly, all of the compensation earned by the Iraq-based employees and contractors you cite would be tax-free under most of the contracts being issued for employment there; (2) most of the jobs there require 12-hour 7-day weeks without, as you note, overtime pay; (3) the typical schedule there is two months on one month off or a comparable within-month schedule; (4) AD&D insurance IS being provided to these people in most cases, and at levels much higher than in the US. Under group policies, even with the higher risk level, it is a very inexpensive benefit to provide to employees and contractors. These facts change the numbers quite a bit and demonstrate the importance of knowing the details of the subject before writing publicly about it. Cheers.

[Dr. Al Lee, PhD]

Fred,

I like your complicating factors: it shows that it is even harder to do an accurate cost-benefit analysis of the risk of going to Iraq for our hypothetical truck driver. If a PhD like me can't get it right, what chance does an actual truck driver have?

Here are a few comments on your points:

1) A truck driver earning $45,000 a year with a family will pay an effective federal income tax rate of <15%. Not paying taxes is a small correction relative to all the other uncertainties (like the risk rate).

2 and 3) Depending on how hours are counted, it sounds like 2 years working in Iraq may be much more than 4080 hours on the job. I didn't attempt to get to an hourly rate, just annual income. It is something the truck driver should consider.

4) Yes death and disability insurance is available (see http://www.usaid.gov/iraq/form/aa_12-16-04.pdf ). No, it is not inexpensive, though employers may cover the cost. The US gov't caps reimbursement at 35% of salary and not more than 5X base salary. Our truck driver would want $1.5 million in coverage (future income), which is 15X base salary. If the disability rate is 4.5%/year for his class of worker (same as soldiers), then ADD insurance cannot cost less than about $60,000/year. It may be that his employer will pick up the extra $40,000 over the gov't max, but he will need that in his contract.

[Ian]

Working in Iraq sucks. There is no job security, very few women, and very high burn out.

IMO it is bs.

[Bubba from mississippi]

PHD , hell Forest Gump could figure this out!
1. do you know the hours a trucker works in
the USA? ever been laid over where they steal guard dogs in this country, or driven in some of the traffic, all of these are
some things to consider. But here is the bottom line ... go to Iraq and pay my bills
and save for old age , or work state side
til they out source my job to someone from
Mexico for half the money. Face it real wage growth is dead in this country. Basic economics, = time value of money pay now play later or play now.... you get it!

[Jim]

After long serious thought here`s where i come out,1st, With the uncompensated time i spend loading, unloading, and downtime waiting for loads added to the hours i spend actually driving, the work week isn`t much different.With the exception of local hourly personel, truckers working within the United States are exempt from the wage & hours laws. 2nd, The fact is someone has to move fuel, and supplies why should`nt it be me. Everyone runs around with ribbons on there cars. Well thats real touchy, feely. But it does little for the soldier who runs out of rations, or ammo. it`s not just the money. it`s time to put up or shut up.

[raiderjay]

I drive a 'lowboy', hauling HEAVY construction equipment for a company in Colorado. I make anywhere from $1200 (take home) to $1500 (take home). I have 401k, FULL insurance benefits, including vision, dental and medical. I am treatd like a valuable commodity here. WHY in HELL would I go to IRAQ to take a pay cut. The trucking industry salaries are going up right here at home. We have a serious driver shortage right here!.
I would submit that a fair salary to risk ones life in an unsettled atmosphere such as IRAQ would be in the $300k to $500k range. At least that's what it would take for ME to even entertain that idea, and THEN I'd probably pass!

[Paul]

Yes there are some really good paying trucking jobs here in the US, but that depends on where you live and if you can get on. Otherwise the long hours the rest of us put in out here just doesn't justify the pay we are getting. When you break it all down, the average pay for a driver should be around $20/hr not the $7-$10 they actually are making if they are lucky. As for those of us on percentage, with companies out there cutting each other rates to get loads I don't see an increase in our salary going up anytime time soon. So for me to go to Iraq and make $100,000/yr. The risk level is the same as working in the states...they just come in different forms. Hell, you can get shout at, mugged, and beatin in some of these truck stops. Road side bomb is just replaced by a car or truck crossing the center line or meiden and hitting you head on. SO what the difference??
As for Bubba, I TOTALLY agree with you about someone needs to step to the plate and help supply our soldiers. There are those who don't have the guts to do it, and there are the brave who will. That's why I'm on here trying to find info to get on board over there.

[Glenn]

I was just offered a job with KBR and am looking to get some info from someone who has already worked in Iraq. I would be a "recovery specialist," which basically means a heavy tow truck driver. I would tow break-downs, and wrecked trucks back to base. Is it worth it? I really want to hear from someone who has been there. Please comment.

[robert geiter]

Risk is everywhere. I learned that in the army 78-85. Is there anyone who can tell where i can get info on trucking in Iraq?

[EZrider]

Hey Glenn,
You can go to their website...kbrjobs.com, if you're serious, the recruiters will contact you. There are jobs overseas that need to be filled. And I agree...if you're driving a truck, risk is "everytime" you get under the wheel. And....if there's an accident or problem within a mile of where you're at...you're at fault. so....risk, is everywhere.

[Lance Murray]

There aren't any damn jobs in the US anymore, they don't pay nothing, and the price of living is going up! High wages, that are tax free up to $80,000.00 yr; I'm all over that. Just waiting for the paperwork.

[joe bell]

Do you have to stay a year, or can you leave when you feel like it?

[virender singh bhadoria]

Sir
I am a indian doctor working in afganistan with US army how i can find jobs for doctor in iraq (pref. kbrjobs)

[Jeff]

First off, I would just like to say going to work in iraq isn't all about the money. Ot is about supporting our troops that are over there. I've been trying to go for some time now, even though I make a very good living here at home. To those of you in support of our troops many thanks to you all; to the others, well you know what you can do. As for You Mr so called Dr. Salary; why don't you get out from behind your desk and quit writing down things that look good on paper but aren't true in real life. I can sit here all day and make anything look good on paper, but rarely and I mean rarely does it ever amount to anything out here in the real world. You can work anything out on paper to make it look anyway you want to, but try to apply that in real life and suddenly your work of art, so to speak, becomes nothing more than a piece of paper that looks pretty to anyone dumb enough to believe it. Its like they say you can get some people to believe anything these days.

[Dr. Al Lee, PhD]

Jeff makes a good point. While I only considered cash compensation in comparing working in Iraq vs. Illinois, there are other factors beyond money to consider when choosing a job.

Compensation professionals call the set of pay plus non-cash factors "total compensation." Non-cash compensation includes both tangible benefits, like health insurance and stock options, and intangibles, like working for a company you believe in.

Going to Iraq to support the troops is an admirable reason to choose the job, and is part of the total compensation for the work. There is no right or wrong answer in weighing the total compensation package. Each person must evaluate the relative value of all the factors for him or herself.

Cheers, Al Lee (Dr. Salary)

[DON HESS]

I've spent 7 years in the army and 3 years in a combat zone between Afghanistan and Iraq. I am a paratrooper and an infantryman with leadership experience and experience with most all weapons associated with the infantry. After working for uncle sam for 7 years, I just want to know where, how, and through what company can I make the most money. I have lived in Falujah and Baghdad Iraq for extended periods of time. I am not to concerned with risks, I am concerned with $$$$; where is it!!

[Joseph Butler]

I worked as a Network Adminitrator (Information Technology contractor) in Iraq and Afghanistan for 335 days, the minimum needed to earn the $80,000 federal tax break for 2005. My base pay was $40/hour. I also received 25% for hazardous duty, and 25% for seperation pay. In essence, I was making $60 per hour.

90% of all the IT contractors I knew worked 12 hours a day, 6 days a week. I did not make overtime since I was an hourly employee. I received 401K and a $50,000 life insurance policy. My pay was at the bottom of the pay scale for going to Iraq as an IT professional, so I would not recommend anyone taking less than $80-$100/hour if you plan on going over there as an IT person.

If you calculated my pay for the entire year (335 days x 12hrs/day x $60/hr) you would get $241,200. I just wanted to provide you all with some real world values when you make your calculations.

[samuel kenete]

hi
I would like to work with you guys. I am a 24 year old and an aircraft mechanic in kenya.
Thanks in advance.

[cornelis]

I worked in Iraq as a truck driver and I would like to go back. pl tel in nz0212176760

[driver in iraq]

I am in Iraq. One please understand your estimate is off. Average starting for outside the wire 86K. That's if you don't take R&Rs and don't get over 84 hours a week.

Also we don't get overtime like in the states; it's straight pay, no time and a half or double time. Holidays are actualy about half pay. It averages out to 15-16 dollars an hour.

Also its 120 days of 12 hour minimum 7 days a week, in 125-139 degrees, then you get 10 days off. Too many people confuse the companies, contracts and pay. Believe me, after two and a half years and a lost family, you have to come here for more than just the money or, as most, you won't last the first 6 months.

[Dany]

I'm Dany from Romania. I'm just a pen away to sign a contract for Afganistan. Network meintenance technician. My payment will be 450Euro/month (basic salary) + 2250Euros tax free money (compensation). Worth it? Can somebody tell me if i'm wrong?

Ty!

[Janet Henry]

Hi, just wanted to give a different perspective on this. My husband is in Iraq. Civilian contract- mechanic making $86,000. I completely see where the writer is coming from - that of a desk and a well-paying job.

But as most of us live paycheck to paycheck (sometimes not even able to do that), you do have to weigh what you can accomplish in 1 year to the risks and sacrifices you will be making. With the increase in foreclosures, jobs being outsourced to other countries and the cost of living increasing - that kind of income is very inviting.

Sticking to a budget, we will be debt free in 1 year with the exception of our house. If he decides to do a 2nd year that will be paid off. This is something we could never have done with him working in the USA. This is a decision we BOTH agreed upon. It isn't easy being apart for either of us or our 3 kids, so please make sure your marriage is solid before deciding to leave for Iraq. But from a wife's perspective - with the economy as it is, it is worth it.

[Mary]

Hi Janet, I am in your situation. My husband is considering going over so that we can also be debt free with the exception of the house. Could you please tell me how long he has been there & what the conditions are? I am terrified something will happen to him, but we may not have a choice.

Do they have to be over there 330 days to get the 1st 84k tax free, or do they get to come home more often? I would appreciate any info and how you and your family are doing? Take care.

[Liz]

Hi

I am looking to get some information for my husband that is considering going to Iraq to work in the IT field. Looking for commments or any information on what it really is like. He has spoke to some recruiters, but we are looking to speak with someone who has been there. Please commment or email us back
Thanks in advance

[Amy]

My husband is a diesel mechanic with 7 years army experience and 8 years of civilian experience. He currently works for Swift Transportation, a HUGE national trucking company.

Swift pays NO OVERTIME either! People try to make KBR and other contractors look like the evil corporate empire because they have huge defense contracts. Guess what folks, your good ol' American businesses collecting your money on the backs of your neighbors are just as greedy!

I don't totally understand how Swift gets out of paying mechanics overtime. My husband makes the same hourly wage if he works 40 hours a week or 80 hours a week. Someone once explained something about them having a car hauler and companies with car haulers don't have to pay overtime in order to keep costs down for the big three. I don't know if that's accurate or not but it sure wouldn't surprise me in the least. In any case, my husband just applied to KBR, one year and we'll be debt free with the exception of our home. He is going to go, take 6 months off to remodel our home and go back so we can pay off our mortgage. Right now, I'm off to score another payday loan so I can get groceries...