Looking to grow your company? Hiring international employees can give you access to cost-effective, skilled talent that will benefit your team.
Hiring from Jordan gives you access to a talented workforce. In fact, the talent pool in Jordan is not only deep but also highly specialized.
As such, this Middle Eastern country is an ideal choice if you’re looking to grow your team worldwide. Although salaries vary widely throughout the Kingdom of Jordan, as of 2022, the average monthly pay in Jordan was around JD 425.07 (USD 599.53), which falls well below the average salaries in the US, UK, or Canada.
Of course, you’ll need to understand the costs of hiring in Jordan beyond salaries. This includes benefits, bonuses, payroll, and taxation in Jordan.
In this article, we’ll break down the cost of hiring talent from Jordan and look at how much you can expect to spend per hire.
Jordanian Hiring Costs
To start, as an employer, you’ll need to fulfill a few basic payment obligations. These include:
- Payroll (gross salaries)
- Tax payments and withholding
- Statutory benefits
- Paid leave
- Overtime
- Severance pay
To make your hiring offers more attractive to prospective employees, it’s always helpful to include bonuses or “fringe benefits”; for example, pay-in retirement plans, health insurance plans, meal subsidies, or other extras that go above and beyond an employee’s basic salary.
Required Costs of Hiring an Employee in Jordan
Jordanian Gross Salary
Jordan’s minimum wage is 260 JD per month as of 2023, which is equivalent to about USD 366.
Work Bonuses
Bonuses like 13th-month pay are not mandatory in Jordan.
Jordanian Government Fees and Taxes
Jordan’s personal income tax (PIT) is applied on a progressive scale model by income, starting from the first 5,000 JD in earned income. Income gained in or from Jordan, regardless of payment location is subject to Jordanian tax.
Income in excess of 200,000 JOD is subject to a 1% national contribution tax.
In Jordan, workers and their employers pay into social security at a rate of 21.75% on gross salary. This excludes overtime pay. As the employer, you pay 14.25% while your employees pay 7.5%. Social security helps cover costs associated with retirement, death benefits, and work-related injuries.
Benefits
There are a few types of statutory benefits in Jordan that you must pay as an employer.
- Paid annual leave: Workers are entitled to annual leave at full pay for up to 14 days for each year of employment. Employees who have been with a company for over five years can extend their leave to 21 days.
- Parental leave: Expecting parents can take 10 weeks off as maternity leave with full pay. Paternity leave allows for three days off work at full pay.
- Sick leave: Jordanian workers can take 14 days per year as sick leave, with full pay if they are hospitalized. For outpatient care, they can receive half pay but must provide a certificate from a medical practitioner that is approved by their workplace.
Overtime Pay
The standard workweek in Jordan is 48 hours per week at eight hours per day (excluding breaks). Jordanian law requires that all overtime be paid at a minimum rate of 150% of an employee's standard wage.
Severance Pay
Jordanian employees are entitled to half a month’s salary for every year of service as severance. You can calculate severance pay by determining the last salary received by the employee and factoring in a minimum of two months' salary.
Remote or Office Working Costs
Does your remote Jordanian team need digital hardware or software set up? If you are bringing on team members remotely, you may have added costs like high-speed internet service, upgraded electronics, printers, or higher-volume servers.
Jordan’s official language is Modern Standard Arabic. Colloquially, many Jordanians speak dialects of Jordanian Arabic or other forms of Levantine Arabic. While these can be mutually understood by many other Arabic speakers, you may need to factor in the cost of translation tools when hiring Jordanian workers.
Consider whether you are hoping to hire a small or large number of Jordanian workers. If there’s a significant team, it could be worth investing in an office or coworking space so your team can access the technologies they need and build connections with their coworkers.
Total Cost of Hiring
Let’s say you wanted to hire an employee in Jordan at a salary of 100,000 USD.
Salary: $100,000
Employer taxes: 7,015 (14.25%)
Bonuses and other costs: Optional.
Total: Without bonus — $107,015
It is important to note that this only includes basic costs. Generally, you will attract higher-skilled and more competent candidates by including bonuses or other paid benefits.
How Borderless Can Help
Although it can seem like all these costs add up quickly, we want to make your hiring process stress-free. Onboarding your new Jordanian team should feel like a breeze.
At Borderless, we help you hire employees from Jordan and over 150 different countries if you are looking to grow your international team. Book a demo to see how we’ll help you hire top global talent quickly and compliantly.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
