Capital City
Amman
Currency
Jordanian Dinar
(
د.ا
)
Timezone
GMT +3
Payroll Frequency
monthly
Tax Year
January 1 - December 31
Employer Tax
14.25%
Languages
Arabic
Capital City
Amman
Currency
Jordanian Dinar
(
د.ا
)
Timezone
GMT +3
Payroll Frequency
monthly
Tax Year
January 1 - December 31
Employer Tax
14.25%
Languages
Arabic
Labour costs in Jordan may be more competitive compared to some other countries with similar skill sets, offering potential cost savings for businesses.
Jordan has a well-educated and skilled workforce, particularly in areas such as information technology, engineering, medicine, and finance.
Jordanians often have a strong cultural awareness and sensitivity, which can be valuable for companies operating in international markets or dealing with a diverse customer base.
Jordan's geographical location in the Middle East makes it strategically positioned for businesses looking to establish a presence in the region, connecting Europe, Asia, and Africa.
Businesses can only operate smoothly in Jordan if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Jordan below, to avoid any compliance issues.
Employment contracts are required to be in Arabic, though they may also be bilingual. It is mandatory for these contracts to be documented in writing and endorsed by both the employer and the employee. A comprehensive employment contract in Jordan must include the following elements:
We can help you get a new employee started in Jordan quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
The standard working hours in Jordan are 8 hours per day and 48 hours per week, from Sunday to Thursday.
According to the Labour Law, as per Article 57, mandatory overtime is restricted to 30 days per year.
Probationary periods in Jordan are optional. However, this probation period should not go beyond three months.
Employment laws in Jordan can be intricate, and even unintentional mistakes in contracts, benefits, or termination processes can carry legal and reputational consequences. With an Employer of Record, you gain a local partner that ensures every hire is compliant. The EOR takes care of drafting compliant contracts, processing accurate payroll, managing contributions to statutory benefits, and handling lawful terminations if needed, all according to local employment standards.
This level of protection is especially valuable when expanding into new or unfamiliar regions. Instead of using time and resources to build in-house legal knowledge, you gain immediate access to local expertise. The EOR keeps you ahead of regulatory updates and shields your company from potential compliance gaps, so you can confidently hire and manage employees while minimizing risk. For hiring managers and founders, it's the difference between hiring with uncertainty and building your team on a legally sound foundation.
With decades of experience in global compliance and deep local knowledge, we ensure smooth adherence to local laws and regulations across borders.
Unmatched coverage for employment across 180 countries.
An employee portal paired with dedicated, human support.
Reliable, cost-effective services with no annual commitments.
January 1 - December 31 is the 12-month accounting period that businesses in Jordan use for financial and tax reporting purposes.
The payroll cycle in Jordan is usually monthly, with employees being paid by the last working day of each month.
As of January 1, 2025, Jordan's minimum wage is set at JOD 260 per month. This rate applies to all workers and is reviewed annually for adjustments.
Jordan does not have a provision for a 13th-month pay.
Employer payroll contributions are generally estimated at an additional 14.25% on top of the employee salary in Jordan.
In Jordan , the typical estimation for employee payroll contributions cost is around 8%.
Personal income tax rates in Jordan are applied progressively, ranging from 5% to 30% as detailed below. In addition, any amount exceeding JOD 200,000 of the annual taxable income for individuals will be subject to 1% as national contribution tax.
In Jordan, the retirement age is set at 60 years for males and 55 years for females. An old-age pension is granted to an insured individual who has reached their retirement age and has made a minimum of 180 contributions, with at least 60 of them being actual contributions.
In Jordan, employers must navigate various payroll and employment tax obligations, including progressive income tax withholding, social security contributions, and withholding taxes on services. It is essential for employers to ensure accurate calculations and timely submissions to avoid penalties and maintain good employee relations. Understanding key tax types, filing deadlines, and due dates is crucial for smooth payroll management.
To streamline payroll processes and stay compliant with Jordanian tax laws, employers can benefit from utilizing payroll management software, which helps consolidate payroll data and ensures adherence to all regulatory requirements.
When you’re scaling quickly, setting up local payroll systems in each new country slows you down. In Jordan, the administrative load can include government registration, benefits management, and accurate, on-time payment delivery. An EOR gives you a plug-and-play solution that handles all of this while your internal team stays focused on growth, not red tape.
Key Ways an EOR Supports Payroll in Jordan:
In Jordan, work permits and visas are essential for employers hiring foreign workers. The process involves submitting applications, paying fees, and meeting specific eligibility criteria. The key work permit types include the General Work Permit, which applies to most employment situations, and the Aqaba Special Economic Zone (ASEZ) Work Permit, designed for jobs within the ASEZ area and offering tax advantages. Employers must act as sponsors for foreign employees, ensuring compliance with Jordanian labor laws, including the submission of medical, police, and educational documentation.
The annual leave entitlement in Jordan is 14 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
In Jordan, there are 10 national holidays that are celebrated as public holidays. The specific holidays may vary, but they commonly include:
Every employee is entitled to an annual leave with full pay lasting for 14 days per year of service, unless a longer duration is mutually agreed upon. If an employee completes five consecutive years with the same employer, the annual leave period extends to 21 days.
Pregnant employees have the right to take maternity leave with full pay both before and after delivery, totaling 10 weeks. This maternity leave is covered by the social security's maternity insurance scheme.
Employees are entitled to a paternity leave of three days, and this leave is fully paid by the employer.
Employees have the right to paid sick leave for a duration of up to 14 days, with the employer covering 100% of the payment. If an employee requires hospitalisation, they are entitled to an additional 14 days of sick leave, with the employer covering 50% of the payment during this extended period.
Jordanian labor laws do not provide for shared parental leave that can be divided between parents. The existing provisions are specific to maternity and paternity leave, with no combined parental leave policy in place.
For startups and small teams, managing global employee benefits isn’t just complex, it’s a full-time job. In Jordan, understanding what benefits are required, how to deliver them, and how to stay compliant can be overwhelming, especially without local HR expertise. An Employer of Record removes that pressure by taking complete ownership of benefits administration, so you don't have to become an expert in local employment law.
Whether it’s healthcare contributions, pension enrollment, or statutory leave, the EOR ensures everything is delivered accurately and on time. They navigate any country-specific nuances, keep up with legal changes, and ensure each benefit is properly tracked and documented. For founders, that means fewer distractions and more time to focus on growth. Your employees get the security and support they expect from a local employer, and you get to scale your team in Jordan without building complex infrastructure or worrying about compliance missteps.
A contract of employment can be terminated based on various factors, as outlined in the labour code and employment regulations. The termination of a contract may occur under the following circumstances:
In Jordan there is a 30-day notice period for termination, and the type of notice depends on the type of termination. No notice is needed during the probation period, and limited-term contracts cannot be terminated before their completion.
Workers not covered by the Social Security law in Jordan are entitled to receive severance, paid as "end of service compensation." This compensation is calculated at a rate of one month's pay for each year of service.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
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As of January 1, 2024, Jordan's minimum wage rates are:
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