Mercans CountryIntel ® Jordan Payroll And HR Insights
Jordan enjoys strong economic and strategic relationships within the MENA region and the world and has emerged as a renewable energy and clean technology destination. With an investor-friendly environment, modern infrastructure, robust economic growth and political stability, Jordan has become a major tourist destination in the Middle East. Despite regional turmoil, Jordan maintains a stable, modern and secure environment, offering exceptional quality of life.
Jordan offers an extensive system of incentives aimed at promoting a range of investments. A gateway to the region, Jordan enables investors and entrepreneurs access to over 1 billion consumers. Incentives for economic growth include custom duty exemptions and tax reimbursement on production inputs, exemptions and reductions of the General Sales Tax on production requirements and tax reimbursement on services for manufacturing and vocational activities.
Entity Registration and Incorporation Requirements
Setting up a new business or expanding an existing one in Jordan is straightforward. Choose how your company operates from a range of entity types which suit your individual circumstance.
Banking Hours: 9:00 am to 6:00 pm from Saturday to Thursday
The standard working week is from Sunday to Thursday from 7:00 am - 2:00 pm
The primary piece of legislation affecting the employment relationship is Jordanian Labor Law No. (8) of 1996, amended in 2019. The latest amendments have a significant impact on a number of aspects of the employment relationship including wages and how wage disputes are resolved, overtime, paternity leave, annual leave, childcare and retirement.
Tourism, information technology, clothing, fertilizer, potash, phosphate mining, pharmaceuticals, petroleum refining, cement, inorganic chemicals, light manufacturing
Dates & Numbers
Official State Name
Hashemite Kingdom of Jordan
International Dialing Code
Jordanian Labor Law determines that the wage (or salary) is all cash or in-kind entitlements of the employee and any other entitlement of whatever type that is provided for by law or the work contract. An employer who pays a worker less than the minimum rate shall be punished by a fine and shall be ordered to pay the worker the difference. The penalty shall be doubled every time the offense is repeated. Companies that operate a multi-country payroll should take note of Jordan’s recent labor law amendments including the introduction of the concept of wage discrimination (gender-based wage inequality).
It is acceptable to provide employees with online payslips
Payroll reports must be kept for 10 years
Employees are entitled to 14 days of paid annual leave, and 21 days after completing 5 years
Employees are entitled to 14 days of paid sick leave
Employees are entitled to 10 weeks of paid maternity leave and 3 days of paid paternity leave
Maternity & Paternity Leave
7 days notice is required for terminating employees
Not mandated by law
13th month salary
268 Jordanian dinars per month
If an employee has worked over 48 hours per week, they are entitled to overtime at a minimum rate of 125% - 150%
If a worker’s employment is terminated before they consume their annual leave, they shall be entitled to receive remuneration for all their remaining leave days.
Any income incurred in or from Jordan (regardless of the place of payment) shall be subject to tax in Jordan. Social security is a general solidarity insurance scheme that aims to provide social and economic protection to the people of Jordan. Benefits are funded by contributions paid by both insured persons and employers.
Aside from the personal income tax rates which are applied progressively, amounts exceeding JOD 200,000 of the annual taxable income for individuals will be subject to 1% as national contribution tax.
Corporate Income Tax
Personal Income Tax
Voluntary subscriptions entails Jordanian citizens being able to subscribe in their old age, disability and death insurance to avail themselves of the benefits provided by social security. This includes pension salaries and disability salaries.
Social Security Rate
Social Security Rate for Employers
Social Security Rate for Employees
Free trade unions may be formed within the limits of the law, wherein any worker has the right to join the trade union if they fulfill membership requirements. As such, employers cannot make the employment of a worker subject to the condition that the worker does not join a trade union. Where there are individual labor disputes, these are settled by the Conciliation Court (except for cases that concern remuneration which are decided upon by the Remuneration Authority).
Chapter IV of the Labor Code deals with the contract of employment, which must be drawn up in Arabic. The duration of the contract is set by agreement between the parties. An employer is able to employ a worker on a trial basis, to verify their competence and capacity. This trial or probationary period shall not exceed three months. The employer has the right to terminate the employment of the worker under probation without notice or indemnity during the trial period.
Provision of a nursery in the workplace was already required when there are at least 20 female employees in the workplace. This minimum number requirement has been removed. The obligation is now triggered when employees cumulatively have at least 15 children under the age of five.
Jordanian Labor Law stipulates that working hours shall not exceed eight per day and a total of 48 hours per week except in cases stipulated by Jordanian law such as persons undertaking general supervision or management or where the nature of work involves traveling within and outside the country.
How an employment contract is terminated depends on a few factors, including whether the contract is unlimited or for a limited period. In the case of the former, if the discharge is found by the court to be arbitrary and in violation of the law, the court may order the employer to reinstate the employee to their job or pay a sum of compensation equal to half of the wage for each year of all the working period. This would be done in addition to the payment in lieu of notice and other entitlements. Where the termination is of limited period work contract and the termination occurs before the term expiry, the employee shall be entitled to al the rights and benefits stipulated in their contact, including due wages until the expiry of the remaining period of the contract (unless dismissal was by virtue of Article 28 of the Jordanian Labor Law).
Minimum notice period for terminating an employee
Total number of public holidays
Working hours per week
Total number of days for Compassionate & Bereavement Leave
The work permit is required for any non-Jordanian worker legally residing in the country to work for an employer. The work contract is required for the application but where this is not available, a letter from the employer clarifying the period of employment, the nature of the worker’s job and estimated wages will suffice.
In the case of the grant of a five-year residence permit, this may be granted where the petitioner has resided in Jordan for 10 years legally (except for wives of Jordanian men) and where the residency is not for work purposes. A letter of recommendation from the Department of Residency and Borders is required.
Work Permit validity
Company’s name, the worker’s name, address, nature of work, and available branches
Worker’s name, nationality, and profession
Two copies of the worker’ work contract
The company’s valid vocational license
Copy of the worker’s passport
List issued by the Social Security Corporation
Valid medical checkup certificate
Photo of the worker.
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