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Jordan revises social security contribution caps effective from January 1, 2019

Effective from January 1, 2019, the Kingdom of Jordan has increased the maximum monthly salary amount that is subject to social security contributions from JOD 3,084, to JOD 3,186. The new maximum applies to employees who were enrolled with the Jordanian Social Security Corporation (“SSC”) by their first employer in the country after October 15, 2009. For employees registered with SSC before October 15, 2009, the monthly salary cap remains at JOD 5,000. The revised maximum salary is subject to social security and applies to all compensation received after January 1, 2019.

Social security contributions are calculated by the Jordanian SSC based on employees’ monthly fixed remuneration, inclusive of any fixed allowances or supplemental compensation, declared to SSC by their employers at the beginning of the respective calendar year. The current social security contribution rate for employees is 7.5% and 14.25% for employers.

Sample social security contribution calculations, reflecting the revised social security salary cap, have been provided below:

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above changes.