Jordan, classified as an ‘upper-middle income’ economy has 6 special economic zones (SEZs) and several industrial zones that attract large-scale investments. Major industrial sectors include textiles, defense, aerospace, pharmaceutical, ICT, and cosmetics. The government of Jordan had reformed subsidies and introduced social protection systems that aim to create favorable conditions for tax reforms and public-private partnerships in infrastructure.
Currency: Jordanian Dinar
Principal Languages: Arabic, Modern Standard Arabic
Government: Parliamentary Monarchy
Capital City: Amman
Major Cities: Zarqa, Irbid, Russeifa, Wadi Al Seer
Employment contracts must be drafted in Arabic, and at least 2 copies must be maintained. In the absence of any employment contract, employees can establish their right to employment via all legal means of evidence. The duration of a contract is set by agreement between the parties.
In an indefinite duration contract, employees are considered in service until their employment is terminated according to the provisions of the Labor Code. In a specified-period contract, employees are considered in service for the period stated in the contract. The contract remains in effect regardless of a change of the employer due to a transfer of inheritance, sale of the undertaking, merger, or any other reason.
Employees can be hired on a trial basis to verify their competence and capacities for the work required of them but the trial period should not exceed 3 months. Their wages cannot be less than the fixed minimum remuneration. The employer can terminate employees under probation without notice or indemnity.
The regular work schedule comprises 48 hours during a 6-day week (excluding meal breaks and rest periods). Individuals employed in hotels, cinemas, and restaurants can work for a maximum 54 hours in a week. The 7th day is a weekly holiday, and most private establishments observe Friday as the weekend holiday. Government offices and banks remain closed on Fridays and Saturdays.
Employees are paid 1.25 times their regular pay for working overtime on the regular working days and 1.5 times their regular pay for working overtime on official or religious holidays.
The following national holidays are observed in Jordan:
- January 1: New Year's Day
- January 30: King Abdullah II's Birthday
- February 4: Mawlid al-Nabi - Prophet Mohammad's Birthday (according to 2018 calendar)
- Good Friday: Variable Date
- Easter Day: Variable Date
- Easter Monday: Variable Date
- May 1: Labor Day
- May 25: Independence Day
- June 10: Army Day or The Great Arab Revolt
- Al Isra' wal Miraj: Variable Date
- Ramadan: Variable Date
- Eid al-Fitr, also known as al-Eid al-Sagheer: Variable Date
- Eid al-Adha Known commonly as al-Eid al-Kabeer (the big feast): Variable Date
- Hijri New Year: The first month of the Islamic calendar - Variable Date
- December 25: Christmas Day
Employees are entitled to 14 days’ annual leave in a year. The leave is increased to 21 days a year if an employee completes 5 years of continuous employment with the same employer.
Women employees are entitled to 10 weeks’ maternity leave out of which at least 6 weeks must be taken post childbirth. Employees are entitled to take one hour off each day within 1 year of delivery to nurse their newborn baby.
Employees are entitled to 14 days’ paid sick leave in a year provided they submit a medical report issued by a medical professional and approved by the organization. The leave can be extended by 14 days with full pay in case of hospitalization and with half pay in case of no hospitalization subject to a report from a medical commission authorized by the organization.
Employees are entitled to 4 months’ unpaid leave to study in an officially recognized college, institute, or university.
Workers are also entitled to 14 days’ paid leave in a year to follow a Ministry-approved worker’s education course, upon their nomination by the employer or manager of the establishment in coordination with the concerned trade union.
Employees are entitled to a maximum of 2 years’ unpaid special leave to accompany their spouse if they move abroad or to a province other than the one in which they normally work.
Employees are entitled to 14 days’ paid leave for pilgrimage if they have been working for the same employer for 5 continuous years. This leave is granted only once during the entire service length.
Social Security in Jordan
All employees and employers with 5 or more employees are required to register with the Social Security Corporation. Foreign workers are required to make social security contributions provided they live in Jordan and work with an organization that complies with the Social Security Law.
With effect from January 1, 2017, employers are required to contribute 14.25% while employees need to contribute 7.5% toward social security.
The old-age pension to be paid is 2.5% of the individual’s wages in the previous 2 years multiplied by the number of contribution years. The maximum pension is equal to 75% of an employee’s average monthly wages multiplied by the number of contribution years.
Dependent's Supplement: The pension is hiked by 10% for the 1st dependent, and 5% for the 2nd and 3rd dependent. The dependent supplement cannot be more than 20% of the pension.
The early pension is based on the previous 60 months’ contributions and the individual’s age at the time of application. If an employee is not entitled to the old-age pension at the legal retirement age, a lump sum is paid which is equal to:
- 10% of the individual’s annual wages for every year of contribution but less than 10 years of contributions.
- 12% of the individual’s wages for every year of contribution but the years of contributions must be between 10 and 18.
- 15% of the individual’s wages for every year of contribution but the years of contribution must be more than 18.
The disability pension equal to 50% of an individual’s average monthly wages in the previous 36 months is paid for the initial earnings of 1,500 dinars, plus 30% of the amount more than 1,500 dinars. The pension is hiked by:
- 0.5% for every year of contribution for months of contributions between 60 and 119
- 1% for every year of contribution for at least 120 months of contributions
Constant-attendance allowance equal to 25% of the pension is paid.
The survivor pension equal to 50% of the individual’s monthly wages in the last year of contribution is provided for the initial 1,500 dinars of wages plus 30% of the amount in excess of 1,500 dinars. The survivor pension equal to 100% of the individual’s pension is paid if the individual was a pensioner. The pension is hiked by:
- 0.5% for every year of contribution if the deceased made 60 to 119 months of contributions
- 1% for every year of contribution if the deceased made 120 months of contributions
How GPS can Help
With our Global PEO/Employer of Record services, companies can expand into Jordan and hire their employees without having to establish a branch office or subsidiary in Jordan.
- Your candidate is hired via our Jordan PEO. If needed, we can also help you find the right talent in any country with our comprehensive global staffing services.
- Your new employee begins work quickly as we take care of employment contracts, statutory and non-statutory benefits, and running their payroll - all in full compliance with Jordan laws.
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Spin Off/M&A Support
- Ensure continuity of payroll, benefits and HR support when acquiring or spinning off a business with employees overseas.
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Ready for Growth When You Are
When ready, we can seamlessly transition you from the PEO/EOR model to your own legal entity and provide ongoing international HR, finance, legal, compliance and staffing support. Learn more about our end-to-end international expansion services.