How to hire and pay employees in Jordan

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Jordan Facts and Stats

Currency

Jordanian Dinar is the official currency of Jordan. Its currency symbol is JOD.

Employer Costs

Estimated at 14.25% of employees salary.

Languages

Arabic is the official language of Jordan.

Population

The population of Jordan is 11.3 Million.

Payroll frequency

Employees are paid monthly.

Hiring

Grow your team in Jordan

No entity, no problem

To start growing your team in Estonia, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.

Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.

Pros & Cons of hiring in Jordan

Hiring in Jordan presents several advantages and challenges for employers. The workforce is well-educated and multilingual, with many professionals fluent in both Arabic and English, which is beneficial for businesses operating in the Middle East and North Africa (MENA) region. Jordan’s growing tech and service sectors provide access to skilled labour in these fields, and labour costs are generally lower than in Western countries, offering cost savings. However, employers must navigate complex local labour laws and regulations, which may require legal guidance to ensure compliance. Additionally, Jordan’s economic challenges and high unemployment rates can lead to higher employee turnover. While infrastructure is improving, it may still lag behind more developed countries, potentially impacting business operations.

Why Jordan is good for remote workers

The tech and service sectors in Jordan are growing, providing access to a pool of skilled talent in these areas. Furthermore, Jordan’s strategic location and time zone compatibility with Europe and Asia facilitate smoother collaboration across different regions.

Start growing your remote workforce now

Employer Costs
social security:14.25%.
Old-Age, Disability, and Death Insurance:9.25%.
Work Injury Insurance:2%.
Maternity Insurance:1%.
Unemployment Insurance:1%.
Medical Insurance:1%.
Benefits

Mandatory Benefits

Social security.

Additional healthcare insurance.

End-of-service gratuity (where applicable).

Employment

Probation

Probation periods in Jordan are not required by law and are totally optional. However, if used they should not exceed 3 months.

Emerald Technology can onboard employees in Jordan within 48 hours.

Restrictive Covenants

In Jordan, restrictive covenants in employment contracts are legal but must adhere to certain conditions to be enforceable. Here are the key types and their typical conditions:
Non-Compete Agreements:
Scope and Duration: Must be reasonable in terms of geographic scope, duration, and the nature of restricted activities. Typically, a duration of up to one year is considered reasonable.
Legitimate Interest: Must protect a legitimate business interest, such as confidential information, trade secrets, or customer relations.
Consideration: There should be some form of consideration for the employee, either financial compensation or a clear benefit.
Non-Solicitation Agreements:
Customers and Clients: Employees may be restricted from soliciting the employer’s customers or clients for a specified period after leaving the company.
Employees: Agreements may also prohibit former employees from soliciting current employees to join a competing business.
Confidentiality Agreements:
Scope: Employees are prohibited from disclosing proprietary or confidential information both during and after their employment.
Duration: Typically, these covenants are indefinite, lasting as long as the information remains confidential.

Insurance
01.

Health Insurance:

The public healthcare system in Jordan is funded by the government and employee premiums and aims to provide essential healthcare services to all citizens, such as general outpatient care, hospitalization and preventive care. The Health Insurance Law was implemented in 2018 and it ensures that health insurance is available to all citizens and residents at low cost, but there may still be out of pocket expenses for medications and some treatments.

02.

Social Security Contributions:

Social security contributions in Jordan are managed by the Social Security Corporation and it provides employees and their families with pension benefits, disability benefits, survivor benefits and health insurance. It is mandatory for all employees in the formal sector to contribute 5.5% of their gross monthly salary and for employers to contribute 14.25% of the employee’s gross salary.

Leave Policy
01.

Maternity Leave:

Employees are entitled to a total of 10 weeks of maternity leave, this can be taken before and after the birth. During this period the employee will receive full pay funded by the social security Maternity Insurance Scheme.

02.

Paternity Leave:

Employees are entitled to 3 days of paternity leave, during which they should receive their full wage from the employer.

03.

Sickness Leave:

Employees are entitled to 14 sick days per year at full pay from the employer. If the illness requires hospitalisation, this period can be extended to 28 days where the employee will receive 50% of their average wage for the last 14 days.

Onboarding

Onboarding

As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:

Emerald Technology can onboard employees in Jordan within 48 hours.
Termination

Resignation and Dismissal

When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:

Notice Periods:

30 days.

Severance

If an employee is made redundant, they are entitled to a payment based on years of continuous service.

Severance Pay:

Severance if not covered by social security, workers are entitled to compensation calculated at month’s pay per year service.

Time off

Statutory Time off

Full time employees in Jordan are entitled to 14 days paid annual leave.

Public Holidays

  • New Year’s
    Easter Sunday
    Easter Monday
    Eid al-Fitr Holiday
    Labour Day
    Independence Day
    Eid al-Adha Holiday
    Islamic New Year
    Prophet Muhammads Birthday
    Christmas Day
Emerald Technology can onboard employees in Jordan within 48 hours.
Salary / Taxes

Work, Pay and Taxes

01.

Minimum Wage:

Employees are entitled to 1.35 JOD per hour.

02.

Working Time and Overtime:

In Jordan, the standard working week is 48 hours, typically spread over six days with an 8-hour workday. In Jordan, overtime work is compensated at 125% of the regular hourly rate for the first two hours beyond the standard 48-hour workweek. Any additional overtime beyond these hours is paid at 150% of the regular hourly rate.

03.

Salary Payments:

Employees are paid monthly.

04.

Bonuses in Jordan:

There is no law in Jordan supporting 13th month pay or bonuses.

05.

Income Tax:

  • Up to 5,000: 0%,
  • 5,001 to 10,000: 7%,
  • 10,001 to 20,000: 14%,
  • 20,001 to 30,000: 21%,
  • Above 30,000: 28%.
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