Guide to employment, payroll and benefits in

Jordan

Rivermate offers complete payroll, benefits and compliance services for

Jordan

01. Overview

Last updated: 

August 19, 2021

Currency
Jordanian Dinar
Capital
Amman
Ease of doing business
69
Language
Arabic
Population
10203134
GDP growth
1.97%

02. Grow your team in

Jordan

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Jordan

, particularly if you don't have established local relationships. You can hire employees in

Jordan

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Jordan, officially the Hashemite Kingdom of Jordan, is an Arab country in Western Asia's Levant region, on the Jordan River's East Bank. Saudi Arabia, Iraq, Syria, Israel, and Palestine all border Jordan. The Dead Sea runs along its western boundaries, and in the extreme south-west, the nation has a 26-kilometer coastline on the Red Sea. Jordan is strategically located at the intersection of Asia, Africa, and Europe. Jordan's capital, Amman, is the country's most populous city as well as its economic, political, and cultural hub. Humans have lived in Jordan since the Paleolithic period. At the end of the Bronze Age, three prosperous kingdoms emerged: Ammon, Moab, and Edom. The Nabataean Kingdom, the Persian Empire, the Roman Empire, the Rashidun, Umayyad, and Abbasid Caliphates, and the Ottoman Empire were among the later rulers. The Ottoman Empire was partitioned by Britain and France after the Great Arab Revolt against the Ottomans in 1916 during World War I. The Hashemite, then Emir, Abdullah I created the Emirate of Transjordan in 1921, and the emirate became a British protectorate. Jordan became an independent state in 1946, formally known as the Hashemite Kingdom of Transjordan, but after capturing the West Bank during the 1948 Arab–Israeli War and annexed it until 1967, it was renamed the Hashemite Kingdom of Jordan in 1949. Jordan gave up its claim to the land in 1988, and in 1994, it became the second Arab country to sign a peace treaty with Israel. Jordan was one of the founding members of the Arab League and the Organization of Islamic Cooperation. Although the sovereign state is a constitutional monarchy, the king wields extensive executive and legislative authority. Jordan is a semi-arid country with an area of 89,342 km2 and a population of 10 million people, making it the Arab country with the 11th-largest population. The dominant religion is Sunni Islam, which is practiced by approximately 95% of the population and coexists with an indigenous Christian minority. Jordan has been referred to as an "oasis of peace" in a volatile area on several occasions. It has largely escaped the unrest that erupted in the aftermath of the Arab Spring in 2010. Jordan has been accepting refugees from a variety of conflict-torn neighboring countries since 1948. According to a 2015 census, Jordan has 2.1 million Palestinian refugees and 1.4 million Syrian refugees. Thousands of Iraqi Christians fleeing ISIL persecution have sought asylum in the kingdom. Jordan continues to welcome refugees, but the recent massive influx from Syria has put significant pressure on the country's finances and infrastructure. Jordan is rated as a "high human growth" country with an "upper middle income" economy. Jordan's economy, despite being one of the smallest in the country, is attractive to foreign investors due to its skilled workforce.

04. Public holidays

05. Types of leave

Paid time off

Employees are given 14 to 21 days of paid annual leave each year.

Public holidays

New Year’s DayIssra-wa-MirajGood FridayEaster MondayLabor DayRamadanIndependence DayEid-al-FitrArmy DayEid-al-Adha

Sick days

Every year, employees are entitled to 14 days of paid sick leave. Sick leave, in general, necessitates a physician's certification. Employees are entitled to an additional 14 days of paid sick leave if they are hospitalized, or half pay if they are not hospitalized but have a medical report.

Maternity leave

Ten weeks of paid maternity leave are available to female employees. After delivery, you must take at least six weeks off. She is also entitled to a year of unpaid leave to care for her children.Employers with more than 20 female employees must provide a nurse and nursery in the workplace at their own expense. Following maternity leave, the employer should give the new mother a one-hour break every year to nurse her child.

Paternity leave

Employees who are fathers are entitled to up to three days of paid paternity leave.

Parental leave

Other than the already mentioned terms regarding maternity and paternity leaves, there are no other provisions in the law in Jordan regarding parental leave.

Other leave

06. Employment termination

Termination process

The employment contract may be terminated by either the employer or the employee. It may be ended if all parties agree, the contract has expired, the task has been finished, or the employee has died or become incapacitated, as documented by a medical report.


Employers are exempt from the foregoing restrictions, however, if it is discovered that the employee was hired by another company during any of these breaks. Employers are obligated to provide terminated employees with an end of service certificate that includes the employee's name, job description, and start/end dates of employment.


The party initiating the termination must present the other party with a written termination notice at least 30 days before to the exit date, which cannot be retracted unless all parties agree. The contract shall remain valid and the employee shall be entitled to their salary during this notice period.


Employers who terminate an employee may either exempt the employee from work throughout the notice period or require the employee to work during the notice period except for the final seven days. Regardless of whether the employee is excluded from work or not, the employer is required to pay the employee's wage throughout the notice period.

In certain circumstances, an employee may resign without giving notice and still be entitled to end of service remuneration.


If the employer ends the fixed-term period contract prior to its expiration, or if the employee terminates it for any of the reasons listed above, the employee retains all contractual rights, benefits, and earnings until the termination notice period expires.

Notice period

The party who initiates the termination must give the other party a written termination notice at least 30 days prior to the exit date, which cannot be retracted unless all parties agree. The contract remains in effect during the termination notice period, and the employee is entitled to their salary during this time.

Severance pay

Employers in Jordan are not required to provide bonuses.

Probation period

Jordan's legislator has established a two-year probation period for public employees, during which time the public administration must make a hiring decision.

07. Working hours

General

The standard workweek consists of 48 hours spread across five days and eight hours per day. Fridays and Saturdays have traditionally been considered Jordan's official weekends. The total number of work and rest hours per day cannot exceed 11 hours.

Overtime

Overtime is paid on a percentage of the employee's wage rate and is limited to 30 days per year.

08. Minimum wage

General

Jordan's compensation laws require all workers to earn a minimum wage of 268 Jordanian dinars per month.

09. Employee benefits

General

Mandatory benefits postulated by law include a probationary period, pay on annual leaves, public holidays, sick leaves, maternity leave, paternity leave, and overtime pay. Statutory benefits also include social security benefits.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Jordan

to hire a team takes time, money, and effort. The labor law in

Jordan

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Jordan

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Jordan

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Jordan

via our Employer of Record / PEO solution.

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