Hiring in Jordan

Key Facts

Political System & Government

Jordan is a constitutional monarchy with a parliamentary system. The King holds substantial executive and legislative powers, including appointing the Prime Minister and the Cabinet. The monarchy plays a central role in the political landscape, balancing traditional authority with modern governance structures.

The government consists of three branches: the executive, legislative, and judiciary. The bicameral National Assembly includes the House of Representatives (elected) and the Senate (appointed by the King). The judiciary operates independently, overseeing the application of laws and ensuring constitutional compliance.

Economic Overview

Jordan's economy is classified as an emerging market with a focus on services, manufacturing, and mining sectors. Key industries include phosphate mining, potash production, pharmaceuticals, and information technology. The country also benefits from a growing tourism sector, driven by its historical sites and regional stability.

Economic growth has been moderate, with a GDP growth rate of approximately 2.0% in 2023. Challenges include limited natural resources and regional geopolitical tensions. However, ongoing reforms aim to improve the business environment and attract foreign investment.

Business Culture & Etiquette

Business culture in Jordan is characterized by a strong emphasis on personal relationships and trust. Face-to-face meetings are preferred, and establishing rapport is essential before engaging in formal negotiations. Hierarchical structures are respected, with decisions often made by senior management.

Communication tends to be indirect and polite, with an emphasis on diplomacy. Punctuality is valued, though meetings may start later than scheduled. Gift-giving is not mandatory but can be appreciated as a gesture of goodwill.

Currency & Banking

The Jordanian Dinar (JOD) is the official currency, pegged to the US dollar at a fixed rate of approximately 0.709 JOD to 1 USD. The Central Bank of Jordan regulates the banking sector, which includes a mix of local and international banks offering a range of services.

Foreign exchange controls are relatively liberal, allowing for the free transfer of funds for business purposes. However, all currency transactions must comply with anti-money laundering regulations and require appropriate documentation.

Key Facts for International Employers

• Jordan has a relatively young and educated workforce, with a high literacy rate exceeding 98%.
• Labor laws mandate a standard workweek of 48 hours, with overtime compensated accordingly.
• Employment contracts are typically written and must comply with the Jordanian Labor Law.
• Social security contributions are required from both employers and employees.
• Work permits are necessary for foreign nationals and are issued by the Ministry of Labor.
• Arabic is the official language, but English is widely used in business contexts.
• The country offers several free zones with tax incentives for foreign investors.
• Cultural sensitivity and respect for local customs are critical for successful business operations.

Employment Contract Requirements

Employment contracts in Jordan must be in writing according to the Jordanian Labour Law No. 8 of 1996, as amended. While oral contracts are legally valid, written contracts are strongly recommended to avoid disputes and ensure clarity of terms. The contract must be drafted in Arabic; however, bilingual contracts including Arabic and another language are common for foreign employees.

Mandatory clauses required by law include:

• Identification of the parties (employer and employee)
• Job title and description
• Place of work
• Contract duration (fixed-term or indefinite)
• Working hours and rest periods
• Salary and payment terms
• Leave entitlements
• Termination conditions and notice periods
• Social security and insurance provisions

The contract must be signed by both parties before commencement of employment. Employers are required to provide the employee with a copy of the signed contract.

Types of Employment Contracts

Jordanian labour law recognizes several types of employment contracts:

• Fixed-term contracts: These specify a definite duration, typically used for temporary or project-based work. The maximum duration is generally two years, renewable once. After renewal, the contract is considered indefinite unless otherwise justified.

• Indefinite contracts: These have no fixed end date and provide greater job security. Termination requires valid cause and adherence to notice periods.

• Part-time contracts: Permitted under Jordanian law, part-time employees have the same rights as full-time employees on a pro-rata basis. Working hours must be clearly stated.

Employers must ensure contracts comply with the Labour Law and any applicable collective agreements. Fixed-term contracts cannot be used to circumvent indefinite employment protections.

Probation Period

Probation periods in Jordan are regulated by the Labour Law and typically allow employers to assess suitability before confirming employment.

During probation, employees are entitled to all labour rights except some protections related to termination. Employers must notify employees in writing of probation terms.

Work Permits & Visa Requirements

Foreign nationals must obtain a work permit and residency visa to legally work in Jordan. The process involves:

• Employer applying for a work permit from the Ministry of Labour
• Submission of employment contract, passport copies, and other documents
• Work permits are generally valid for one year and renewable
• Residency permits are linked to the work permit and require medical examination

Certain professions require additional approvals. Employers are responsible for ensuring compliance with immigration and labour regulations. Unauthorized employment can result in fines and deportation.

Background Checks & Onboarding

Background checks are permitted but must comply with privacy and anti-discrimination laws. Common checks include:

• Verification of educational and professional qualifications
• Criminal record checks (limited and subject to consent)

Mandatory registrations include:

• Registration of the employee with the Social Security Corporation within 14 days of employment
• Notification to the Ministry of Labour for foreign workers

Onboarding procedures typically involve orientation on workplace policies, health and safety training, and signing of employment documents.

Anti-Discrimination Laws

Jordanian law prohibits discrimination in employment based on race, gender, religion, disability, or political opinion. The Labour Law and the Constitution provide protections against unfair treatment.

Employers must ensure equal opportunity in hiring, remuneration, promotion, and termination. Harassment and victimization are also prohibited.

EOR Considerations

When using an Employer of Record (EOR) in Jordan, key considerations include:

• Ensuring the EOR is fully compliant with Jordanian labour and immigration laws
• Clarifying responsibility for social security contributions and tax withholding
• Confirming the EOR’s ability to provide legally compliant contracts and manage terminations
• Understanding local labour market practices and cultural norms

Employers should conduct due diligence to mitigate risks related to compliance, employee rights, and reputational impact when engaging an EOR in Jordan.

Minimum Wage

The national minimum wage in Jordan is set by the Ministry of Labour and applies uniformly across all regions. As of January 1, 2024, the national minimum wage is JD 260 per month. There are no officially recognized regional variations in minimum wage rates.

Salary Structure & Payment

Salaries in Jordan typically consist of a basic salary plus any applicable allowances and bonuses. The basic salary forms the core of the remuneration package and is subject to social security and income tax deductions.

Payroll is generally processed on a monthly basis, with payments made at the end of each calendar month. Employers commonly pay salaries via bank transfer, though cash payments are also permitted under certain circumstances.

Employment contracts usually specify the salary structure, including the breakdown of basic salary, allowances, and any other benefits. Deductions for social security contributions and income tax are made at source by the employer.

Mandatory Bonuses & Allowances

Jordanian labor law mandates certain bonuses and allowances:

• 13th Month Pay: Employers are required to pay a 13th month salary, typically disbursed at the end of the calendar year or upon termination if earlier.
• End-of-Service Gratuity: Employees who complete at least one year of service are entitled to an end-of-service indemnity calculated based on the last basic salary.
• Allowances: Common mandatory allowances include transportation and housing allowances, which are often stipulated in collective agreements or employment contracts.

These bonuses and allowances are subject to social security and tax regulations.

Income Tax (Employee)

Income tax in Jordan is progressive and applied to the taxable income after allowable deductions. The tax brackets effective as of 2024 are as follows:

Taxable income includes salary, bonuses, and other employment-related income. Employers are responsible for withholding income tax from employees' salaries and remitting it to the tax authorities.

Employer Tax Obligations

Employers in Jordan have several mandatory contribution obligations. These include social security contributions covering pensions, unemployment, and occupational hazards, as well as health insurance contributions.

Employers must register employees with the Social Security Corporation and ensure timely monthly payments of contributions. Failure to comply can result in fines and legal penalties.

Tax Filing & Compliance

Employers are required to file monthly social security and income tax returns electronically by the 15th day of the following month. Annual income tax returns must be filed by employees by March 31 of the following year.

Compliance includes accurate payroll reporting, correct tax withholding, and timely remittance of contributions. Non-compliance may lead to penalties including fines ranging from JD 100 to JD 5,000, interest on overdue payments, and potential legal action.

The Jordanian tax authority conducts periodic audits to ensure compliance. Employers are advised to maintain detailed payroll records and documentation to support filings and deductions.

Standard Working Hours

The standard working hours in Jordan are regulated under the Jordanian Labour Law. The maximum daily and weekly working hours are strictly defined to protect workers’ rights and ensure adequate rest.

Employees are entitled to at least one full rest day every week, commonly Friday, during which no work is expected unless otherwise agreed or required by the nature of the job.

Overtime Regulations

Overtime work is permitted under Jordanian law but must be compensated at higher rates than regular working hours. Overtime is calculated based on the employee’s normal hourly wage.

Overtime must be voluntary unless stipulated otherwise in a collective agreement or employment contract. Employers are required to keep records of overtime hours worked.

Annual Leave

Annual leave entitlement in Jordan increases with the length of continuous service. Leave days are calculated on a calendar year basis.

Unused annual leave may be carried over or compensated according to the employment contract or company policy.

Public Holidays

Jordan observes several statutory public holidays each year. The dates below correspond to the year 2026.

Public holidays based on the Islamic calendar vary each year according to moon sighting and may be adjusted accordingly.

Sick Leave

Employees in Jordan are entitled to sick leave with pay, subject to medical certification. Sick leave entitlements are as follows:

• Entitlement: Up to 14 days fully paid sick leave per year.
• Extended Sick Leave: Additional 14 days at 75% pay.
• Medical Certificate: Required from a licensed medical practitioner for any sick leave exceeding two consecutive days.

Employers may require employees to undergo medical examination to verify fitness for work after extended sick leave.

Maternity & Paternity Leave

Maternity and paternity leave entitlements are provided to support employees during family growth periods.

Maternity leave includes a mandatory period before and after childbirth. Fathers are entitled to a short paternity leave to support the mother.

Other Statutory Leave

In addition to the above, Jordanian labour law provides for other types of statutory leave:

• Bereavement Leave: Typically 3 days paid leave for the death of an immediate family member.
• Marriage Leave: Employees are entitled to 3 days paid leave upon their own marriage.
• Study Leave: Not explicitly regulated by law; subject to employer discretion.

Employers may offer additional leave benefits beyond statutory requirements as part of company policy or collective agreements.

Grounds for Termination

Termination of employment in Jordan can occur under three primary grounds: termination with cause, termination without cause, and mutual agreement.

Termination with cause occurs when an employee commits a serious breach of contract or misconduct. Examples include dishonesty, gross negligence, repeated absenteeism without valid reason, violation of workplace rules, or criminal acts affecting the employer’s interests. In such cases, the employer may terminate the employee immediately without notice or severance pay, provided the cause is well documented and proven.

Termination without cause refers to dismissal where the employer does not allege any fault on the employee’s part. The employer must provide the employee with the required notice period or pay in lieu of notice. Severance pay is also generally due based on the employee’s tenure.

Mutual agreement termination occurs when both employer and employee agree to end the employment relationship. This agreement should be documented in writing, specifying the terms of separation, including any compensation or benefits.

Notice Period Requirements

Jordanian labor law mandates notice periods for termination, which vary according to the employee’s tenure and probation status. The following table summarizes the minimum notice periods:

Employers may provide payment in lieu of notice. Failure to comply with notice requirements may result in penalties.

Severance Pay

Severance pay in Jordan is calculated based on the employee’s continuous service and final wage. The Labor Law stipulates the following severance entitlements:

The severance pay is calculated on the basis of the employee’s last wage, including basic salary and regular allowances. Severance is payable upon termination without cause or redundancy but not for dismissal with cause.

Unfair Dismissal Protections

Jordanian labor law protects employees against unfair dismissal. Dismissal is considered unfair if it lacks valid cause, violates procedural requirements, or breaches anti-discrimination provisions.

Employees who believe they have been unfairly dismissed may file a complaint with the Ministry of Labor within 60 days of termination. The Ministry will attempt mediation between the parties. If unresolved, the dispute may proceed to the Labor Court.

Remedies for unfair dismissal include reinstatement or compensation equivalent to the employee’s lost wages. The court may also order payment of severance if applicable.

Data Protection & Privacy

Jordan enacted the Personal Data Protection Law (PDPL) in 2021, aligning with international standards similar to the GDPR. Employers must obtain explicit consent from employees before collecting, processing, or transferring personal data.

Employee data must be processed lawfully, transparently, and for legitimate employment purposes only. Employers are required to implement adequate security measures to protect data from unauthorized access or breaches.

Employees have the right to access their personal data, request corrections, and object to processing under certain conditions. Data retention must not exceed the period necessary for the employment relationship or legal obligations.

Workplace Safety & Unions

Jordanian labor law mandates employers to provide a safe and healthy work environment. Employers must comply with occupational safety standards, conduct risk assessments, and provide necessary training and protective equipment.

Trade unions are legally recognized and employees have the right to join or form unions without employer interference. Unions may engage in collective bargaining to negotiate wages, working conditions, and dispute resolutions.

Employers must respect union activities and cannot retaliate against union members. Strikes are permitted under specific legal conditions.

Dispute Resolution

Labor disputes in Jordan are resolved through a multi-tiered mechanism:

• Mediation: Initial disputes are submitted to the Ministry of Labor’s mediation committees, which seek amicable settlements.
• Arbitration: If mediation fails, parties may agree to arbitration by a labor arbitrator or committee.
• Litigation: Unresolved disputes may be escalated to the Labor Court, which has jurisdiction over employment matters.

The process is designed to be efficient and accessible, ensuring timely resolution of employment conflicts while safeguarding workers’ rights and employers’ interests.