Employer of Record Guide in Jordan
Expanding your team into Jordan opens doors to exceptional talent in a strategically positioned Middle Eastern market. Our comprehensive guide simplifies the complexities of Jordanian employment law, helping you hire compliantly while tapping into this growing economy.
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Key stats and facts
Jordan's economy centers around major hubs like Amman and Zarqa, with growing demand for tech and healthcare professionals. Understanding the local market dynamics—from currency considerations to in-demand skills—sets the foundation for successful hiring decisions.
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Your EOR guide in Jordan
From minimum wage requirements to complex tax structures, Jordan's employment landscape has specific nuances that can impact your hiring strategy. This detailed breakdown covers everything from payroll cycles to leave policies, giving you the practical knowledge needed to manage your Jordanian workforce effectively.
Minimum Wage
Note: Research shows conflicting minimum wage figures (JOD 290 vs JOD 260). Please verify the current rate with local authorities.
The minimum wage in Jordan is JOD 290 per month, effective January 1, 2025, representing an 11.5% increase from the previous rate of JOD 260. This applies to all sectors and employee categories across the Kingdom.
Payroll Cycle
- Monthly: Most common payment frequency in Jordan
- Bi-weekly: Allowed but less common
- Weekly: Permitted for certain industries
Employers must pay salaries by the end of each calendar month, with a maximum delay of seven days into the following month.
Individual Income Tax
Jordan operates a progressive income tax system with the following brackets for 2025:
| Annual Income (JOD) | Tax Rate |
|---|---|
| Up to 10,000 | 0% |
| 10,001 to 20,000 | 7% |
| 20,001 to 30,000 | 14% |
| 30,001 to 50,000 | 20% |
| 50,001 to 75,000 | 25% |
| Over 75,000 | 30% |
Tax Residency Criteria
Individuals are considered Jordanian tax residents if they:
- Reside in Jordan for 183 days or more in a calendar year
- Have their centre of vital interests in Jordan
- Are Jordanian nationals (regardless of residence duration)
Employer Payroll Contributions
Employers must contribute to Jordan's social security system:
| Contribution Type | Employer Rate | Employee Rate | Total |
|---|---|---|---|
| Social Security | 14.25% | 7.5% | 21.75% |
| Unemployment Insurance | 1% | 0.5% | 1.5% |
| Total Employer Cost | 15.25% | 8% | 23.25% |
Note: Contributions are calculated on gross salary up to a maximum ceiling of JOD 3,000 per month.
Working Hours
The standard working week in Jordan is:
- 8 hours per day
- 48 hours per week (6 days)
- Maximum 10 hours per day (with overtime compensation)
During Ramadan, working hours are reduced to 6 hours per day for Muslim employees.
Overtime Pay
- Rate: 1.25× regular hourly wage for hours exceeding 8 per day
- Night Work: 1.25× regular rate (10 PM to 6 AM)
- Friday/Holiday Work: 1.5× regular rate
- Maximum: 12 hours of overtime per week
Bonus Payments
- 13th Month: Not mandatory but commonly provided
- Performance Bonuses: At employer discretion
- Holiday Bonuses: Traditional during Eid celebrations
Full-Time vs. Part-Time
- Full-time: 48 hours per week (standard)
- Part-time: Less than 48 hours per week
- Temporary: Fixed-term contracts up to 2 years
Annual Leave
- Minimum: 14 working days after one year of service
- After 5 Years: 21 working days annually
- Accrual: Proportional for partial years
- Payout: Must be paid upon termination if unused
Sick Leave
- Paid Sick Leave: Up to 14 days per year at full pay
- Extended Sick Leave: Additional 14 days at half pay
- Medical Certificate: Required for absences exceeding 3 days
- Chronic Illness: Up to 6 months with medical documentation
Maternity Leave
Note: Research shows conflicting maternity leave durations (90 days vs 12 weeks). Please verify current regulations.
- Duration: 90 consecutive days (approximately 12 weeks)
- Pay: Full salary during leave period
- Timing: Can begin 6 weeks before expected delivery
- Job Protection: Position guaranteed upon return
Paternity Leave
- Duration: 3 days paid leave
- Timing: Within 30 days of child's birth
- Eligibility: All male employees regardless of tenure
Bereavement Leave
- Immediate Family: 3 days paid leave
- Extended Family: 1 day paid leave
- Definition: Spouse, children, parents, siblings
Religious Leave
- Hajj Pilgrimage: 15 days unpaid leave (once per employment)
- Eid Celebrations: Official public holidays
- Friday Prayers: Reasonable time allowance for Muslim employees
Summary
| Leave Type | Duration | Paid? | Funding |
|---|---|---|---|
| Annual Leave | 14-21 days/year | Yes | Employer |
| Sick Leave | 14+14 days | Full/Half pay | Employer |
| Maternity Leave | 90 days | Yes | Employer |
| Paternity Leave | 3 days | Yes | Employer |
| Bereavement | 1-3 days | Yes | Employer |
| Hajj Pilgrimage | 15 days | No | Employee |
Termination Types
Termination With Cause:
- Serious misconduct or breach of contract
- No notice or compensation required
- Must be documented and justified
Termination Without Cause:
- Requires proper notice or payment in lieu
- Severance compensation may apply
- Must follow procedural requirements
Notice Period Requirements
Notice periods based on length of service:
| Length of Employment | Notice Period |
|---|---|
| Less than 3 months | None |
| 3 months to 1 year | 1 month |
| 1 to 5 years | 2 months |
| Over 5 years | 3 months |
Severance Pay
- Calculation: Half month's salary for each year of service
- Minimum: One month's salary after 2 years of service
- Maximum: 6 months' salary
- Payment: Due within 30 days of termination
Probationary Periods
- Duration: Maximum 3 months for most positions
- Extension: Up to 6 months for senior roles
- Termination: Either party may terminate with 1 week's notice
Final Pay Requirements
Employers must provide final settlement within 30 days of termination, including:
- Outstanding salary
- Accrued annual leave
- End-of-service gratuity
- Any other contractual benefits
Anti-Discrimination Laws
Termination is prohibited based on:
- Gender, race, religion, or nationality
- Pregnancy or maternity leave
- Trade union membership
- Filing labour complaints
National Public Holidays
| Holiday | Date | Type |
|---|---|---|
| New Year's Day | January 1 | Fixed |
| Epiphany | January 6 | Fixed |
| Good Friday | Varies | Religious |
| Easter Monday | Varies | Religious |
| Labour Day | May 1 | Fixed |
| Independence Day | May 25 | Fixed |
| Eid al-Fitr | Varies | Religious (3 days) |
| Eid al-Adha | Varies | Religious (4 days) |
| Islamic New Year | Varies | Religious |
| Prophet's Birthday | Varies | Religious |
| Christmas Day | December 25 | Fixed |
Holiday Pay Rules
- Eligibility: All employees regardless of tenure
- Payment: Full day's salary for each public holiday
- Working on Holidays: 1.5× regular rate plus substitute day off
Religious Observances
Jordan accommodates both Islamic and Christian holidays, reflecting the country's diverse religious composition. Employees may request time off for religious observances not covered by public holidays.
Required Documents for Employment
- Employment Contract: Must be in Arabic (English translation acceptable)
- Work Permit: Required for non-Jordanian nationals
- Residence Permit: For expatriate employees
- Social Security Registration: Mandatory for all employees
- Tax Registration: Individual taxpayer identification
- Bank Account: For salary payments (local bank preferred)
Work Permits & Visas
For Non-Jordanian Nationals:
- Work permit required before employment begins
- Employer must sponsor the application
- Processing time: 2-4 weeks
- Annual renewal required
Language Requirements
- Official Language: Arabic
- Business Language: English widely accepted
- Contracts: Must be available in Arabic
- Documentation: Government forms require Arabic
Background Checks
- Criminal Record: Required for certain positions
- Educational Verification: Common for professional roles
- Previous Employment: Reference checks permitted
- Medical Examination: Required for specific industries
Data Protection & Privacy
Jordan's data protection framework requires:
- Employee consent for data collection
- Secure storage of personal information
- Limited data sharing with third parties
- Right to access and correct personal data
Probation Period Setup
- Standard Period: 3 months
- Documentation: Must be specified in employment contract
- Evaluation: Regular performance reviews recommended
- Extension: Possible with mutual agreement
Onboarding Timeline
| Step | Timeline |
|---|---|
| Job offer accepted | Day 0 |
| Work permit application (if needed) | Day 1-14 |
| Employment contract signed | Day 15-20 |
| Social security registration | Day 21-25 |
| Bank account setup | Day 25-30 |
| First day of work | Day 30-35 |
Worker Classification
Jordan distinguishes between:
- Employees: Subject to Labour Law protections
- Independent Contractors: Governed by Civil Code
- Temporary Workers: Limited-term contracts
Misclassification can result in penalties and retroactive benefit payments.
Unionisation & Collective Agreements
- Right to Organise: Protected under Jordanian law
- Collective Bargaining: Permitted in private sector
- Strike Rights: Limited and regulated
- Union Membership: Voluntary for private sector employees
Cultural Norms & Workplace Expectations
Communication Style:
- Respectful and hierarchical
- Relationship-building important
- Direct feedback given privately
Work-Life Balance:
- Family obligations highly valued
- Flexible scheduling during Ramadan
- Religious observances accommodated
Dress Code:
- Conservative business attire expected
- Cultural sensitivity important
- Industry-specific variations
Anti-Discrimination Laws
Jordan prohibits discrimination based on:
- Gender (with some exceptions)
- Religion or belief
- National origin
- Disability (reasonable accommodation required)
- Political opinion
Remote Work Considerations
Remote work is increasingly accepted but requires:
- Written policy in employment contract
- Clear performance expectations
- Appropriate technology and security measures
- Compliance with labour law regardless of work location
Equipment & Expenses:
- Employer typically provides necessary equipment
- Internet and utility allowances may be negotiated
- Health and safety standards apply to home offices
What Borderless AI Handles
When you hire through Borderless AI in Jordan, we manage:
- Employment contract drafting and compliance
- Work permit and visa processing
- Social security registration
- Monthly payroll processing
- Tax withholding and remittance
- Leave management and tracking
- Termination procedures and documentation
- Ongoing regulatory compliance monitoring
Built-in benefits packages for Jordan
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:
Medical Insurance
Dental Insurance
Retirement Contribution
Life Insurance
Vision Insurance
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