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Jordan has a highly educated and skilled workforce, particularly strong in sectors like healthcare, engineering, IT, and education. With a population of around 10 million, Jordan offers access to both local and international talent. The country has a relatively stable economy compared to other countries in the region, though there are challenges such as high unemployment rates and a large proportion of young job seekers.
Recruitment in Jordan is governed by the Jordanian Labor Law (No. 8 of 1996), which sets clear guidelines on employment contracts, wages, termination procedures, and employee rights. Companies seeking to hire in Jordan should be aware of the legal requirements, especially concerning the employment of expatriates. Employers often leverage job boards, recruitment agencies, and AI-powered platforms like Iris to access a broad talent pool quickly and efficiently.
Facts & Stats
Labor Laws in Jordan
Under Jordanian labor law, the probation period can be up to 3 months. During this time, either the employer or the employee can terminate the contract without compensation. After the probation period, the employment contract becomes permanent, and both parties are required to follow the termination procedure outlined in the labor law.
Employees in Jordan are entitled to at least 14 days of paid annual leave after one year of service, increasing to 21 days after five years with the same employer. Public holidays and weekends do not count toward annual leave. Employers must ensure employees take their leave, and unused leave may be compensated if the employee leaves the company.
The standard workweek is 48 hours, with a maximum of 8 hours per day. Overtime is compensated at 125% of the regular wage and 150% on holidays. Certain industries have flexible work hours, and labor laws ensure fair working conditions and employee well-being.
Overtime is paid at 125% of the employee’s hourly wage for the first 30 hours of overtime and 150% beyond that.
The minimum wage for employees in Jordan is set at 260 JOD per month. Many employers offer higher wages, especially in sectors such as IT, healthcare, and education. Wages in Jordan are also affected by inflation and cost of living adjustments.
Understanding Employer, Employee, and Individual Taxation
7.5%
Employees in Jordan are required to contribute 7.5% of their gross salary to social security. This contribution ensures access to pension benefits, healthcare, and unemployment support.
14.25%
In Jordan, employers contribute 14.25% of an employee’s gross salary toward social security, covering retirement, disability, and health insurance benefits. These contributions help maintain social stability and employee welfare.
Progressive rates from 5% to 30%
Jordan imposes a progressive income tax on individuals, ranging from 5% to 30%, depending on annual earnings. Tax exemptions and deductions may apply based on specific criteria.
Jordan operates a mandatory pension system managed by the Social Security Corporation (SSC). The pension system provides retirement, disability, and survivor benefits for employees who have contributed to the fund for a minimum of 180 months (15 years). The pension amount is based on the employee’s salary history and contributions over the years.
Termination of employment in Jordan must comply with the Jordanian Labor Law. Employers can terminate an employee for reasons such as gross misconduct or poor performance, but must follow the proper legal process. Employees are entitled to compensation if dismissed without a valid reason.
Employees who have been employed for less than 5 years are entitled to a 1-month notice period. For employees with more than 5 years of service, the notice period extends to 2 months. Employers must also give the same notice period if they wish to terminate the contract.
Employees are entitled to severance pay upon termination if the employer dismisses them without just cause. Severance pay is typically equivalent to one month’s salary for each year of service.
Annual Leave
Employees are entitled to 14 days of paid annual leave after one year of continuous service. This increases to 21 days after five years of service.
Sick Leave
Jordanian employees are entitled to 14 days of paid sick leave per year. If an employee needs additional sick leave, they may be eligible for unpaid leave. Sick leave must be certified by a medical professional.
Maternity and Paternity Leave
Female employees are entitled to 10 weeks of paid maternity leave. There is no statutory paternity leave under Jordanian labor law, but some employers provide this benefit voluntarily.
Bereavement Leave
Employees are typically entitled to 3 days of paid bereavement leave in the event of the death of a first-degree relative (parent, spouse, or child).
Public Holidays in Jordan
Jordan observes several public holidays, including:
Frequently asked questions
What makes Iris helpful for hiring in Jordan?
Iris offers AI-powered recruitment tools that assist employers in Jordan by automating candidate screening, job posting, and shortlisting. This accelerates the hiring process, ensuring compliance with local laws and providing access to qualified talent.
Is it mandatory to hire Jordanian nationals?
While there is no formal nationalization program in Jordan, employers are encouraged to prioritize local candidates due to high unemployment rates. Hiring foreign nationals requires obtaining approval from the Ministry of Labor.
How is severance calculated in Jordan?
Employees are entitled to severance pay if terminated without a valid reason. The severance pay is generally calculated as one month's salary for each year of service.
What are the official working hours in Jordan?
The standard workweek in Jordan is 48 hours, which is usually spread across six days. Some companies opt for a 5-day workweek with longer hours to accommodate business needs.
Do employees in Jordan receive a pension?
Employees in Jordan are eligible for a pension under the Social Security Corporation (SSC) if they contribute for at least 180 months. The pension is based on the employee’s average salary and total contributions.
