Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
When operating in Jordan, understanding the intricacies of the employer-employee relationship is crucial. This includes aspects such as payroll cycle, employer and employee contributions, minimum wage, hiring procedures for employees, contractors, and expatriates, background checks, employment contracts, onboarding processes, employee benefits, social security, healthcare and insurance coverage, leave policies, public holidays, work permits and visas, probation periods, notice periods, as well as termination and severance procedures, all while considering the implications of personal income tax.
| Continent | Asia |
| Country | Jordan |
| Country | Amman |
| Time zone | UTC+02:00 |
| Total Time zones | 1 |
| Working hours per week | 45 |
| Working week | Sunday–Thursday |
| Typical hours worked | 9 |
| Personal Tax filing deadline | Before the end of the fourth month following the end of the tax period. |
| Financial Year | 1st January to 31st December |
Mandatory Benefits in Jordan: An Overview
Visitor Requirements
Jordan requires that all visitors have a valid health insurance policy for the duration of their time in the country. U.S. citizens traveling to Jordan must register on the country's e-platform, Gateway2Jordan, prior to arrival. This registration will provide travelers with a QR code that will be necessary for entry into the country.
Cost of Employer-Sponsored Benefits
For Jordanian nationals, a compulsory employee benefit for the social security pension scheme is required, amounting to 21.75% of the gross monthly salary (7.5% paid by the employee). The average monthly salary in Jordan is JOD 500. Additional benefits may include housing and transportation allowances, as well as health and life insurance. However, specific regulations regarding a new health insurance scheme are still unclear.
Public Healthcare
Public healthcare in Jordan is funded by the government and contributions from the country's workforce. A monthly deduction is taken from the salaries of all employees in Jordan to support the public healthcare system. These contributions grant employees access to social security, which provides them with free or subsidized healthcare. Jordan is recognized as a top destination for medical tourism, with highly regarded physicians who have received education in Western countries.
Trends
One significant trend influencing employee benefits in Jordan is the nationalization of the workforce. As of mid-2022, the labor force participation rate in Jordan stood at 33.5%, with women accounting for 14.2% of the workforce, which is relatively low compared to global rates. In response, Jordan launched a new Vision for Economic Modernization in 2022, aiming to drive growth and opportunities over the next decade and beyond. This vision, along with a Public Sector Modernization Plan, will guide efforts for inclusive and resilient growth and development in the country.
Noteworthy Information
Jordan boasts a highly educated workforce, with the majority of its workforce being national and possessing high qualifications and skills across various industries. This makes Jordan one of the most highly educated countries in the region.
Surprising Fact
Personal income tax in Jordan is applicable to all incomes exceeding JOD 9,000, which encompasses a significant portion of the workforce.