Jordan's work culture blends regional traditions with a professional, business-friendly outlook, and Amman serves as a regional hub for many multinational operations. Hiring in Jordan is governed primarily by the Labour Law No. 8 of 1996 and its later amendments, which set clear rules on contracts, wages, working hours, and termination. This guide walks through the minimum wage in Jordan, payroll and taxes, benefits, leave, and the practical steps employers need to follow.
Key Facts About Employment in Jordan
Information Category | Details |
Minimum Wage in Jordan | JOD 290 per month. |
Standard Workweek | 48 hours standard. |
Payroll Frequency | Monthly processing. |
Fiscal Year | Calendar year (January-December). |
Main Employment Laws | Jordanian Labour Law No. 8 of 1996 Social Security Law No. 1 of 2014 |
Employment Contracts in Jordan
Employers should understand the contract types recognized under employment law in Jordan before they extend an offer. The most common arrangements are described below.
- An indefinite-term (unlimited) contract has no fixed end date and continues until either party lawfully terminates it. This is the default for ongoing roles.
- A fixed-term (limited) contract specifies a clear start and end date and is suited to projects or defined periods. A limited-term contract ends automatically when its term expires. If both parties continue to implement the contract after the term expires, the labor law treats it as renewed for an unlimited period from the beginning of employment.
- A part-time contract covers employees who work reduced hours, while a temporary or casual contract addresses short-term and seasonal needs.
Contracts should be in writing and prepared in Arabic, since Arabic is required for official documentation and registration with the Ministry of Labor. Article 11 of the labor law requires the contract to set out the full names of the employer and employee, the job title and a description of duties, the start date, the salary, the working hours, and the contract duration when the term is fixed. A probationary period is permitted for up to three months, and the probationary worker’s wage must not be below the minimum wage. During probation, the employer may terminate the worker without notice or remuneration. If the worker continues after probation expires, the contract is considered unlimited, and the probation period counts toward service.
Payroll, Taxes, and Social Security in Jordan
Payroll in Jordan requires employers to manage both social security contributions and income tax withholding. The tables below outline the employer and employee obligations.
Social Security Contributions
Contribution Type | Employer Rate | Employee Rate | Notes |
Social Security Corporation (SSC) | 14.25% of gross salary | 7.5% of gross salary | Contributions are calculated on monthly earnings up to a cap of JOD 3,349. |
Coverage funded | Included above | Included above | Contributions fund old-age pension, disability, death, work-injury insurance, maternity benefits, and unemployment insurance. |
Registration | Required | Required | Every private-sector employee, whether Jordanian or a foreign worker with a valid permit, must be registered from the first day of employment. |
Income Tax (Progressive Rates)
Annual Taxable Income (JOD) | Tax Rate |
The first 5,000 | 5% |
The second 5,000 | 10% |
The third 5,000 | 15% |
The fourth 5,000 | 20% |
Over 20,000 and up to 1,000,000 | 25% |
The remaining balance | 30% |
A national contribution tax of 1% applies to annual taxable income that exceeds JOD 200,000. Residents benefit from a personal exemption of JOD 9,000, plus an additional JOD 9,000 for dependents, with the combined family exemption capped at JOD 23,000. Further deductions of up to JOD 3,000 are available for documented medical, education, rent, and housing-interest costs. Employers must withhold income tax from wages each month and remit it to the Income and Sales Tax Department, while annual returns are generally due by 30 April of the following year.
Jordan does not operate a special expatriate income tax incentive for ordinary employees, although companies located in designated Development Zones and Free Zones, such as the Aqaba Special Economic Zone, can access reduced corporate tax rates. The standard general sales tax rate is 16%.
Compensation & Benefits in Jordan
Beyond the minimum wage in Jordan, employers commonly offer a mix of statutory and market-driven benefits. The table below summarizes the typical components.
Benefit Type | Status | Details |
Health insurance | Partly statutory | The SSC covers work-injury treatment, and private medical insurance is a widely expected market benefit rather than a general legal requirement. |
Allowances | Common, discretionary | Housing, transport, education, food, and mobile allowances are frequently provided and should be itemized clearly in the contract. |
Bonuses | Discretionary | Performance and annual bonuses are common in competitive sectors such as IT, finance, and energy. |
13th/14th salary | Not mandatory | Jordan does not require a statutory 13th or 14th month payment. |
End-of-service gratuity | Conditional | Employees who are not covered by the SSC are entitled to one month's wage for each year of service. |
Working Hours and Overtime in Jordan
Working hours in Jordan are capped to protect employee wellbeing, and overtime carries premium pay. The table below sets out the standards.
Item | Rule |
Daily hours | A maximum of 8 hours per day, excluding meal and rest breaks. |
Weekly hours | A maximum of 48 hours per week across up to six days. |
Weekly rest day | Friday is the usual rest day, and a Friday-Saturday weekend is common. |
Overtime on normal days | Paid at a minimum of 125% of the regular hourly wage. |
Overtime on rest days and public holidays | Paid at a minimum of 150% of the regular hourly wage. |
Leave and Statutory Time Off in Jordan
Statutory leave entitlements in Jordan are summarized in the table below.
Leave Type | Details |
Paid annual leave | Employees receive 14 days per year, rising to 21 days after five continuous years with the same employer. Annual leave is separate from public holidays and cannot be waived. |
Sick leave | Employees are entitled to 14 days of paid sick leave per year, with a further period possible in cases of hospitalization or on a doctor's recommendation. |
Maternity leave | Female employees are entitled to 10 weeks of fully paid maternity leave before and after childbirth, with at least six weeks taken after childbirth. Employers may not employ the worker before the end of that six-week post-childbirth period. |
Paternity leave | Fathers are entitled to three days of paid leave following the birth of a child. |
Parental leave | A woman working in an institution with ten or more workers may take unpaid leave for up to one year to raise her children. She is entitled to return to work afterward, but forfeits that right if she works for pay in another institution during the leave. |
Other leave | Employees may receive leave for pilgrimage (Hajj), bereavement, and study, subject to the law and company policy. |
Below is the expected list of public holidays in Jordan. Islamic holiday dates depend on the lunar calendar and official moon sighting, so they may shift by a day when confirmed closer to the date.
- New Year's Day
- Eid al-Fitr
- Labor Day
- Independence Day
- Arafat Day
- Eid al-Adha
- Islamic (Hijri) New Year
- Birthday of the Prophet Muhammad
- Christmas Day
Hiring and Onboarding Process in Jordan
- Choose a hiring model, which generally means establishing a local entity, partnering with an Employer of Record (EOR), or engaging the worker as an independent contractor.
- To establish a local entity, register with the Ministry of Industry, Trade and Supply, the Income and Sales Tax Department, and the Social Security Corporation, which typically takes around 15 to 30 business days and involves setup costs and minimum capital.
- To hire quickly without forming an entity, use an EOR that already holds a Jordanian entity and becomes the legal employer, which usually enables onboarding within one to two weeks.
- Engage independent contractors only for genuinely autonomous work, because Jordanian law presumes an employment relationship when the arrangement resembles dependent employment, and misclassification can trigger back contributions and penalties.
- Issue a written, Arabic-language contract, register the employee with the SSC from day one, and set up monthly payroll with correct income tax withholding.
- For onboarding, confirm bank details for electronic salary payment, document allowances clearly, and explain leave and benefits in writing. Work permits remain relevant only when an American employer wants to relocate or hire a foreign (non-Jordanian) worker into Jordan, in which case the employer must sponsor a Ministry of labor work permit.
Termination & Notice Periods in Jordan
The labor law sets clear rules for ending employment in Jordan, and compliance protects employers from costly disputes.
- A written notice of 30 days is generally required from either party to end an indefinite-term contract, while no notice is required during the probationary period.
- Valid reasons for dismissal without notice include defined cases of serious misconduct set out in the labor law, and dismissal of pregnant employees or employees on maternity leave is prohibited.
- Fixed-term contracts normally run to their end date, and ending one early without lawful cause can entitle the employee to wages for the remaining period.
- End-of-service compensation equal to one month's wage for each year of service applies to employees who are not covered by the SSC, with proportional amounts for partial years.
- Where a dismissal is found to be arbitrary or unlawful, the labor courts can award additional compensation, and employees generally have a limited window to file a claim.
Useful Resources
Disclaimer: This article is provided for informational purposes only and should not be relied on as legal advice or used as a substitute for advice from qualified legal counsel.
