Jordan PEO & Employer of Record Services
Global PEO Services (GPS) helps companies hire employees in Jordan without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.
When hiring employees in Jordan, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Jordan labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Jordan. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Jordan - Country Overview
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 has reformed subsidies and introduced social protection systems that aim to create favorable conditions for tax reforms and public-private partnerships in infrastructure.
Arabic, Modern Standard Arabic
Zarqa, Irbid, Russeifa, Wadi Al Seer
Employment Contracts in Jordan
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.
Working Hours in Jordan
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.
Employee Leave in Jordan
The following national holidays are observed in Jordan:
- January 1: New Year’s Day
- Easter Day
- Easter Monday
- May 1: Labor Day
- May 25: Independence Day
- Eid al-Fitr, also known as al-Eid al-Sagheer (2 days)
- Eid al-Adha Known commonly as al-Eid al-Kabeer (2 days for the big feast)
- Hijri New Year: The first month of the Islamic calendar
- Mawlid al-Nabi: Prophet Mohammad’s Birthday
- 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.
- Sick Leave
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.
- Education Leave
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.
- Special Leave
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.
- Pilgrimage Leave
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.
Employee Benefits in Jordan
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.
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