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Employer of Record and Payroll Services in Jordan Jordan flag

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  • Employer of record
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  • In-country payroll
Global Payroll Team
Written by Global Payroll Team
Last updated May 1, 2026
Expert Reviewed
Payroll in Jordan
EOR in Jordan
PEO in Jordan

Jordan map

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Mercans offers complete payroll, PEO and HR services in Jordan

Jordan enjoys strong economic and strategic relationships within the MENA region and continues to position itself as a destination for investment in sectors such as information technology, pharmaceuticals, tourism, logistics, manufacturing, and renewable energy. With modern infrastructure, regional connectivity, and a comparatively stable business environment, Jordan remains an important commercial hub in the Middle East.

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Doing Business in Jordan

Jordan offers a system of incentives aimed at promoting investment across a range of sectors. Its location gives investors access to regional markets, and incentives may include customs duty exemptions, General Sales Tax relief for qualifying inputs, and investment-related benefits under applicable legislation and sector regulations.

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

Banking hours vary by institution and branch, but many banks commonly operate Sunday to Thursday during normal business hours.

Working Week

The standard working week in Jordan is generally from Sunday to Thursday, with normal working time usually not exceeding 48 hours per week.

Labor Law

The primary piece of legislation affecting the employment relationship is Jordanian Labor Law No. 8 of 1996, as amended. The law regulates wages, annual leave, sick leave, maternity and paternity leave, overtime, probation, termination, and other core employment rights and obligations.

Main Industries

Tourism, information technology, clothing, fertilizer, potash, phosphate mining, pharmaceuticals, petroleum refining, cement, inorganic chemicals, and light manufacturing

GDP Growth

2.5%

Dates & Numbers

dd/mm/yyyy

Official State Name

Hashemite Kingdom of Jordan

Population

11.55 million

Capital

Amman

Major Languages

Arabic

Currency

Jordanian dinar (JOD)

Internet Domain

.jo

International Dialing Code

+962

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Jordan
Amman, JO
9:50 am, May 6, 2026
12°C
haze
71 %
Wind Gust: 0 mph
Clouds: 75%
Sunrise: 5:46 am
Sunset: 7:19 pm

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Payroll in Jordan

Mercans provides comprehensive and compliant payroll solutions for companies operating in Jordan. Given our global experience of 20 + years in the industry, we offer industry-leading outsourced payroll services with our Jordan payroll team’s experience, expertise, and smart payroll technology. A leader in payroll outsourcing, Mercans is one of the largest payroll companies in Jordan and in the global industry.

As for payroll in Jordan, we can streamline complex and time-consuming payroll processes such as payroll reporting, statutory deductions, and social security administration by handling the administrative aspects and managing end-to-end payroll services for you. With us as your dedicated payroll provider, you can rest assured that you will always receive real-time payroll-related answers to all your queries.

To give you more time to do what you do best, we provide customized services to fit your firm’s needs so that you can focus on your core business activities.

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Payroll

Jordanian Labor Law determines that the wage or salary includes all cash or in-kind entitlements of the employee and any other entitlement provided for by law or the employment contract. An employer who pays a worker less than the minimum wage may be fined and ordered to pay the worker the difference. Jordanian labor law also addresses equality in wages and other employment protections.

It is acceptable to provide employees with online payslips

Payslip

Payroll reports should generally be kept in line with applicable tax and employment record-keeping requirements

Reports

Employees are entitled to 14 days of paid annual leave, and 21 days after completing 5 years

Annual Leave

Employees are entitled to 14 days of paid sick leave, which may be extended in certain cases under the law

Sick Leave

Employees are entitled to 10 weeks of paid maternity leave and 3 days of paid paternity leave

Maternity & Paternity Leave

1 month notice is generally required for terminating employees on unlimited-term contracts

Employee Termination

Not mandated by law

13th month salary

290 Jordanian dinars per month

Minimum Wage

If an employee works over normal working hours, they are entitled to overtime at a minimum rate of 125% and 150% for weekly rest days or public holidays

Overtime

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

Severance Pay

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Employer of Record (EOR) in Jordan

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Mercans offers reliable and efficient Employer of Record (EOR) services in Jordan, enabling companies to expand their global presence with ease. Mercans’ EOR in Jordan makes it easy for you to expand your business without any entity setup.

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As an automated, united, and efficient global HR platform, our employer of record services helps you manage your remote teams along with their payrolls, benefits, onboarding, etc., in the most efficient manner.

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With an international network in over 160 countries, Mercans as an EOR provider in Jordan can assist you in accomplishing your dreams of global expansion with ease. Mercans provides you with access to talented professionals at all levels of experience. Our local network and global infrastructure allows us to perform activities such as hiring, managing contracts and payrolls, onboarding, and employee record management so you can focus on growing your core business.

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PEO in Jordan

Mercans provides flexible and cost-effective Professional Employer Organization (PEO) services in Jordan, enabling companies to establish a local presence and manage their workforce without the need for legal entities or subsidiaries. With Mercans’ PEO in Jordan, companies can streamline their HR and payroll operations. A Professional Employer Organization, Mercans is committed to providing a hassle-free HR experience, including employee benefits, payroll administration, and compliance with Jordanian labor laws. By partnering with Mercans, companies can focus on their core business activities while leaving their HR and payroll responsibilities to experts.

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Tax and Social Security

Any income incurred in or from Jordan, regardless of the place of payment, is generally subject to tax in Jordan. Social security is a general insurance scheme that aims to provide social and economic protection. Benefits are funded by contributions paid by both insured persons and employers.

Tax

Personal income tax rates are applied progressively. In addition, amounts exceeding JOD 200,000 of annual taxable income for individuals are subject to a 1% national contribution tax. Corporate income tax rates in Jordan vary by sector, although the standard rate commonly referenced for many activities is 20%.

20%

Corporate Income Tax

30%

Personal Income Tax

16%

Sales Tax

16%

VAT

Social Security

Jordan’s social security system covers benefits such as old-age, disability, death, work injury, maternity, unemployment and related protections, subject to the applicable scheme rules.

21.75%

Social Security Rate

14.25%

Social Security Rate for Employers

7.5%

Social Security Rate for Employees

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Employment Law

Free trade unions may be formed within the limits of the law, and workers have the right to join a trade union where they meet membership requirements. Employers cannot make employment conditional on a worker not joining a trade union. Individual labor disputes are addressed under the mechanisms provided by Jordanian labor law.

Employment Agreement

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 may employ a worker on a trial basis to verify competence and capacity. This probationary period must not exceed 3 months. The employer may terminate employment during probation without notice or indemnity.

Working condition

Jordanian law regulates childcare obligations, working time, rest periods and related workplace protections. Working hours generally must not exceed 8 hours per day or 48 hours per week except in cases allowed by law.

Leaves

Jordanian Labor Law provides for annual leave, sick leave, maternity leave, paternity leave and official holidays. Working hours generally must not exceed 8 hours per day and a total of 48 hours per week except in cases stipulated by Jordanian law.

Employment termination

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 an unlimited contract, if the discharge is found by the court to be arbitrary and in violation of the law, the court may order reinstatement or compensation in addition to payment in lieu of notice and other entitlements. If a limited-term contract is terminated before expiry, the employee may be entitled to the rights and benefits stipulated in the contract unless dismissal falls under a lawful ground.

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1 month

Minimum notice period for terminating an employee

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Varies by year

Total number of public holidays

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48

Working hours per week

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3 days

Total number of days for Compassionate & Bereavement Leave

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Immigration

A work permit is generally required for any non-Jordanian worker legally residing in the country who will work for an employer in Jordan. Supporting employment documentation is required as part of the permit process, together with the employer’s corporate and licensing documents.

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Residency permits

Foreign nationals working in Jordan generally require both a work permit and a residence permit. Residence rules vary by category, and longer-term residence options may be available in specific circumstances under the applicable immigration rules.

Work Permit validity

One year

Required Documents

Company name, the worker’s name, address, nature of work, and branch details where applicable

Worker’s name, nationality, and profession

Two copies of the worker’s employment 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

Compliant, reliable, error-free and touchless payroll in Jordan

Build the best team and hire top talent compliantly in Jordan. Get in touch with Jordan payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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    FAQs

    What is an Employer of Record (EOR) in Jordan and how does it support foreign companies?

    An Employer of Record in Jordan acts as the legal employer for your workforce in Jordan. It handles employment contracts, payroll, tax withholdings, social contributions and labour-law compliance so that your company can hire locally without setting up a Jordanian legal entity.

    Why should businesses use an EOR instead of establishing a local entity in Jordan?

    Using an EOR in Jordan reduces the time and cost of setting up a local company, simplifies administrative tasks, and ensures compliance with Jordanian employment and tax regulations from day one—ideal for companies entering the market quickly or hiring a small team.

    How does payroll outsourcing in Jordan ensure compliance with labour-and-tax regulations?

    Payroll outsourcing in Jordan ensures that salaries, tax deductions, social security contributions and statutory filings are handled in full alignment with Jordanian law. This lowers the risk of penalties or non-compliance and keeps your employment processes up to date with local regulations.

    Can an Employer of Record in Jordan hire employees and manage work permits for international companies?

    Yes. An EOR in Jordan can hire employees on behalf of your foreign company and assist with the required work permits or residence authorisations for non-local nationals. It oversees all HR, payroll and compliance tasks, enabling local operations without your own entity.

    What are the key benefits of using EOR and payroll services in Jordan for global expansion?

    Key benefits include fast access to the Jordanian talent pool without entity setup, full regulatory and tax compliance, reduced operational and legal risk, access to local HR and payroll expertise, and flexibility to scale your operations while you focus on your core business growth.

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