Jordan is home to the ancient city of Petra, one of the New Seven Wonders of the World.
Payroll and Benefits Guide - Jordan
Fun Facts
The Dead Sea, located in Jordan, is the lowest point on Earth’s land surface, sitting at about 1,410 feet below sea level.
The ancient Roman city of Jerash, located in Jordan, is one of the most well-preserved Roman ruins in the world.
Jordan is home to the baptism site of Jesus Christ.
Amman, the capital city of Jordan, is one of the oldest continuously inhabited cities in the world
The Jordanian flag is the only flag in the world that has a Pan-Arab color scheme.
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| Social Security and Pension | 7.50% |
Employer Payroll Tax
| Contribution Type | Rate |
| Social Security | 14.25% |
Payroll
Payroll Cycle
In Jordan, paychecks are issued once each month. Payments must be made no later than the last working day of each month and on the same day each month. Some firms prefer to pay their staff twice a week.
13th Salary
In Jordan, there is no provision for 13th-month pay.
Work Hours and Week
8 hours per day, 48 hours per week, Sunday to Thursday.
Overtime
There are limits on the amount of hours an employee may work when requested to work overtime or on a holiday. Obligatory overtime is limited to 30 days annually, with the exception of Article 57 of the Labor Law.
On working days, overtime must be paid at a rate of 125% of the regular wage, and 150% on weekends and other off-work days. For some employees, such as managers and supervisors, exemptions may be applicable.
Leave
Paid Time Off
Employees are granted a minimum of 15 days of paid vacation each year, which increases to 21 days after five years of employment. Every employer is free to choose their own carryover procedure.
Public Holidays
In Jordan, there are 8 public holidays in 2023.
Sick Days
Employers must give their workers 14 days of paid vacation each year. In circumstances of hospitalization or based on a doctor’s recommendation, an additional 14 days can be needed.
Maternity Leave
Employees who are pregnant are entitled to ten weeks of paid maternity leave, which includes time to recover before and after birth. After delivery, leave must last at least six weeks. When a mother returns from maternity leave, she is entitled to one hour of unpaid time off per day to breastfeed the kid until they turn one.
If at least ten of the employees are married women, the employer is required to offer an acceptable facility for the employees’ children under the age of four, under the supervision of a qualified nurse.
Paternity Leave
Previously, there was no provision for paternity leave under the labor legislation; however, the modified labor law now provides new fathers three days of paid leave from work following the birth of a child.
Parental Leave
In Jordan, there is no provision for parental leave.
Termination
Termination Process
The termination process varies according to the employment agreement or collective bargaining agreement and is based on the type of contract and reason for termination.
Either the employee or employer can terminate the employment contract at any time. Notice in writing is required. According to Section 21 of the labor code, a contract of employment shall be considered terminated if both parties agree to terminate it, the duration of the contract has expired or the work itself has been completed, or the employee dies or is no longer capable of working due to a disease or disability certified by the medical authority.
Notice Period
Both the employer and the employee are obligated to provide one month’s written notice. During the trial period, there is no need to give notice. Contracts with a limited duration cannot be canceled.
Severance Pay
If a worker is not covered by Social Security, they must be paid severance as “end of service compensation” at a rate of one month’s pay for every year of service.
Probation Period
Probation Period
In Jordan, employers are allowed to set up probationary periods of up to three months. They also have the authority to end any employment arrangement at any time, with or without cause, before the probationary period is up.
Immigration
Upon employer request, a work or employment visa may be obtained. When hiring foreign nationals, an employer must provide proof of a valid contract and submit the application on the employee’s behalf. According to Jordan’s labor law’s Article 12, a formal work permit must be granted by the ministry of labor.
However, there are strict requirements with regard to eligibility. Most importantly, the employer must demonstrate that no other Jordanian worker is qualified or experienced enough to fill the position, or that the number of Jordanian workers who are eligible for it is insufficient to meet the corporation’s needs.
VAT
The commonly used standard rate of VAT in Jordan is 16.00%