In Jordan, several benefits for employees are mandated by law. Employers must comply with these regulations to ensure they are operating within the legal framework.

Social Security Contributions

The most significant mandatory benefit is the social security pension scheme. Both employers and employees contribute a combined 21.75% of the gross monthly salary. The contribution breakdown is:

• Employer contribution: 14.25%
• Employee contribution: 7.5%

This scheme provides benefits like old age pension, disability benefits, and survivor benefits upon retirement, disability, or death of the employee.

Paid Leave

Employees are entitled to a minimum of 14 days of paid annual leave after completing one year of service. They are also entitled to paid leave on all official Jordanian public holidays. Jordanian labor law provides for paid sick leave, although the specific details and duration may vary depending on the employment contract and company policy.

Female employees are entitled to paid maternity leave, typically lasting 60 days. Jordanian law also offers a limited period of paid paternity leave, although the specific duration may vary.

Other Mandatory Benefits

In case of termination, employees are entitled to severance pay based on their length of service. Both employers and employees are required to provide a notice period before termination of employment. The specific duration of the notice period depends on the employment contract and Jordanian labor law.

In Jordan, many companies go beyond the baseline level of employee benefits mandated by law, offering additional perks to attract and retain top talent.

Transportation Allowances

One such benefit is the provision of transportation allowances. These allowances help employees cover commuting costs, a significant benefit, especially in larger cities like Amman.

Flexible Work Arrangements

Flexible work arrangements are another optional benefit some companies are starting to offer. These arrangements, such as remote work options or compressed workweeks, can improve employee work-life balance and attract a wider talent pool.

Professional Development Opportunities

Investing in employee development is another way employers can offer optional benefits. This can be done by providing training programs, conferences, or educational stipends, helping employees stay up-to-date in their field and enhancing their skillsets.

Life and Disability Insurance

Life and disability insurance are other optional benefits that demonstrate an employer's concern for employee well-being. They provide financial security in case of unforeseen circumstances.

Additional Benefits

Other optional benefits may include:

• Subsidized meals
• Gym memberships
• Recreation facilities
• Childcare assistance
• Profit-sharing plans
• Stock options

The specific benefits offered by a company will depend on its industry, size, and budget. However, providing competitive benefits packages can be a powerful tool for attracting and retaining top talent in Jordan's evolving job market.

In Jordan, there is no mandatory health insurance for employees. The Jordanian government acts as the primary financier for healthcare services through two public insurers, covering a significant portion of the population.

Public Healthcare System

The public healthcare system in Jordan is funded by the Jordanian government and mandatory contributions from employees through the Social Security Corporation (SSC). This contribution grants access to social security, which includes free or subsidized healthcare services. Jordan boasts a well-regarded healthcare system, ranking first for service provision in the MENA region.

Private Health Insurance

Private health insurance is not mandatory in Jordan, but employers may offer it as an additional benefit. It can provide access to a wider range of healthcare options and potentially higher quality care.

In Jordan, retirement security is primarily supported by two main pillars: the Social Security System and Employer-Sponsored Plans.

Social Security System

The Social Security System is managed by the Social Security Corporation (SSC). It requires contributions from both employees and employers, which are deducted from monthly salaries. This system offers retirement pensions upon reaching retirement age and meeting contribution requirements. Additionally, it provides lump sum payouts for those leaving the workforce before retirement age, proportional to contribution periods.

Employer-Sponsored Plans

While not mandatory, some Jordanian companies offer Employer-Sponsored Plans as employee benefits. These include:

• Defined Benefit Plans: These guarantee a monthly pension based on salary and years of service. However, they are less common.
• Defined Contribution Plans: In these plans, employees and/or employers contribute to a retirement fund that grows over time. An example of this is Group Allocated Annuity Plans. Offered by insurance companies, these plans offer guaranteed interest rates and flexible payout options.

Additional Considerations

Some Jordanian employees might have access to private pension plans offered by their professions or industries. Individuals can also explore voluntary saving options through life insurance products with retirement benefits.