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Payroll and Benefits Guide Jordan

Last updated: May 28, 2023

Currency
Jordanian Dinar (JOD)
Employer Taxes
14.25%
Payroll Frequency
Monthly
Employee Costs
7.50%
Capital
Amman
Date Format
dd/mm/yyyy
Fiscal Year
January1 - December 31
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Contribution

Employer Employer Payroll Contributions
14.25% Social Security
14.25% Total Employment Cost
Employee Employee Payroll Contributions
7.50% Social Security and Pension
7.50% Total Employee Cost
Employee Income Tax
5.00% Up to 5,000 JOD
10.00% 5,000 JOD – 10,000 JOD
15.00% 10,000 JOD – 15,000 JOD
20.00% 15,000 JOD – 20,000 JOD
25.00% 20,000 JOD – 1,000,000 JOD
30.00% 1,000,000 and over

Any amount exceeding JOD 200,000 of the annual taxable income for individuals will be subject to 1% as national contribution tax.

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

The Tripartite Committee for Labor Affairs decided to fix the minimum wage in Jordan at JOD 260 for the years 2023 and 2024.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Frequency

The payroll frequency in Jordan is monthly. Payments must be made on the same day of each month and no later than the last working day of each month. Some employers choose to pay their employees on a bi-weekly basis.

 

Working Hours

Working Hours

8 hours per day, 48 hours per week, Sunday to Thursday.

Overtime

When an employee is requested to work overtime or work on holidays, there are maximums in relation to the number of hours allowed. Subject to Article 57 of the Labor Law, obligatory overtime is capped at 30 days per year.

Overtime must be paid at a rate of 125% salary on working days and 150% salary on holidays or rest days. Exemptions might apply for certain workers e.g. supervisors and managers.

 

Leave

Annual Leave (vacation)

Employees are entitled to a minimum of 15 days of annual paid leave increasing to 21 days after five years of service. Each employer can decide their own carryover policy.

Public Holidays

Holidays falling on weekends are moved to the following Monday as a day off in lieu.

Certain religious holidays are determined by the lunar cycle and will be confirmed nearer the date of the holiday.

Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
24 Mar 2024 Sunday Palm Sunday Optional Holiday
10 Apr 2024 Wednesday Eid al-Fitr Tentative
11 Apr 2024 Thursday Eid al-Fitr holiday Tentative
12 Apr 2024 Friday Eid al-Fitr holiday Tentative
13 Apr 2024 Saturday Eid al-Fitr holiday Tentative
1 May 2024 Wednesday Labour Day
5 May 2024 Sunday Orthodox Easter Day Optional Holiday
6 May 2024 Monday Orthodox Easter Monday Optional Holiday
25 May 2024 Saturday Independence Day
15 Jun 2024 Saturday Arafah Tentative
16 Jun 2024 Sunday Eid al-Adha Tentative
17 Jun 2024 Monday Eid al-Adha holiday Tentative
18 Jun 2024 Tuesday Eid al-Adha holiday Tentative
19 Jun 2024 Wednesday Eid al-Adha holiday Tentative
7 Jul 2024 Sunday Muharram/New Year Tentative
15 Sep 2024 Sunday Prophet’s Birthday Tentative
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday Boxing Day

Sick Leave

Employees are entitled to 14 days a year at full pay by the employer. A further 14 days might be required in cases of hospitalization or based on a doctor’s recommendation.

Maternity Leave

Pregnant employees are entitled to maternity leave with full pay for ten weeks including rest before and after delivery. Leave after delivery shall be no less than six weeks long.  After returning from maternity leave, the woman is entitled to one hour’s leave during the workday to nurse the child until the child reaches the age of one.

Employers with at least twenty married women workers in their employment shall provide an adequate facility under the care of a trained nurse for the employees’ children under four years of age if at least ten of them are in such an age group.

Paternity Leave

The amended labor law grants new fathers three days’ leave from work with full pay after the birth of a child, whereas before, the labor law previously made no provision for paternity leave.

Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

The termination process varies according to the employment agreement or collective bargaining agreement and is based on the type of contract and reason for termination.
Either the employee or employer can terminate the employment contract at any time. Notice in writing is required. According to Section 21 of the labor code, a contract of employment shall be considered terminated if both parties agree to terminate it, the duration of the contract has expired or the work itself has been completed, or the employee dies or is no longer capable of working due to a disease or disability certified by the medical authority.

Notice Period

One month’s written notice is required, applied to both employer and worker. No notice is required during the probation period. Limited-term contracts cannot be terminated.

Severance

Severance must be given to workers if they are not subject to the Social Security law paid as an “end of service compensation” at a rate of one month’s pay for each year of service.

VISA

VISA

Work/employment visa can be obtained upon the request of the employer. The company that intends to hire foreign nationals shall submit the application on behalf of its employee with the demonstration of a viable contract. An official work permit should be issued by the Ministry of Labor in line with the Art. 12 of the labor law in Jordan. However, there are strict conditions with regard to the eligible conditions; most importantly, the employer must prove that the vacancy cannot be filled by any other Jordanian worker due to the lack of required experience and qualification or the number of Jordanian workers who are eligible for the vacancy are not sufficient thus, it fails to meet the needs of the corporation.

VAT

The standard VAT rate is 16%.

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Jordan
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ICS
Date Day Holiday Notes
1 Jan 2024 Monday New Year’s Day
24 Mar 2024 Sunday Palm Sunday Optional Holiday
10 Apr 2024 Wednesday Eid al-Fitr Tentative
11 Apr 2024 Thursday Eid al-Fitr holiday Tentative
12 Apr 2024 Friday Eid al-Fitr holiday Tentative
13 Apr 2024 Saturday Eid al-Fitr holiday Tentative
1 May 2024 Wednesday Labour Day
5 May 2024 Sunday Orthodox Easter Day Optional Holiday
6 May 2024 Monday Orthodox Easter Monday Optional Holiday
25 May 2024 Saturday Independence Day
15 Jun 2024 Saturday Arafah Tentative
16 Jun 2024 Sunday Eid al-Adha Tentative
17 Jun 2024 Monday Eid al-Adha holiday Tentative
18 Jun 2024 Tuesday Eid al-Adha holiday Tentative
19 Jun 2024 Wednesday Eid al-Adha holiday Tentative
7 Jul 2024 Sunday Muharram/New Year Tentative
15 Sep 2024 Sunday Prophet’s Birthday Tentative
25 Dec 2024 Wednesday Christmas Day
26 Dec 2024 Thursday Boxing Day