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Standard probation period in Jordan should not exceed three months or ninety days.
One month before the contract’s termination date.
Jordan’s current minimum wage is JOD 260, 000 per month in 2023.
The typical work week is 48 hours, divided into five days per week and eight hours per day. Fridays and Saturdays have traditionally been designated as Jordan’s official weekends. The total number of work and rest hours per day cannot exceed 11 hours.
The total number of work and rest hours per day cannot exceed 11 hours. Overtime is only permitted for 30 days per year. Overtime is calculated as a percentage of the employee’s hourly wage.
Non-compete agreements are regulated by the Jordanian Labor Law No. (8) of 1996. Employers may insert a non-compete clause in the employment agreement if it satisfies certain criteria. In Jordan, non-compete provisions are not always enforceable and can be contested in court.
Provided that the total amount awarded is not less than the worker’s remuneration for three months and not more than his remuneration for six months, and is calculated on the basis of the worker’s last remuneration.
The following criteria must be met in order for a contract to be deemed terminated: both parties must agree, the contract’s term has elapsed or the job has been completed and the employee must have passed away or develop a condition that is judged incapacitating for work and has been certified by a medical authority.
A written notice of termination shall be given to the other party under an employment contract with an indefinite term at least one month before the other party intends to terminate the employment contract. After that, notification can only be canceled with both parties’ approval.
Collective bargaining agreements may be permanent or of limited duration. A notification of any changes or termination of collective bargaining agreements must be given to the Ministry. Copies of collective bargaining agreements must be made in a minimum of three original copies to be kept by each party as well as the Ministry. These contracts become enforceable on the day specified in the contract or the date they are filed with the Ministry.
Upon request from any employer or employee and following careful review by the Minister of Labor, the scope of application of a collective agreement that has been in effect for at least two months may be extended to include all employers and employees in a particular sector, a group of employers and employees in all regions, or a specific region.
Ministry of Labor and Labor Courts.
An employee is entitled to 14 days of yearly leave with full pay for each year of employment, unless a greater length of leave has been agreed upon between the employer and employee.
Employees have 14 days of paid sick leave per year. Sick leave generally necessitates a medical certificate from a physician.
A female employee is entitled to paid maternity leave before and after delivery for a total of 10 weeks, with the post-delivery period not being less than 6 weeks.
An employee is entitled to three working days of paid paternity leave following the confinement of his wife, if a medical report attested by a medical doctor or midwife is provided.
N/A
16 public holidays.
Every employee is entitled to 14 days of paid leave each year for any one of the following reasons: to attend a Ministry-approved workers’ education course upon employer or establishment manager nomination, to go on pilgrimage providing they have been in employers service for five consecutive years or to enroll in an official university, institute, or college.
The first month of unemployment is paid at 75% of the insured’s last monthly covered earnings; the second month at 65%; the third month at 55%; and the fourth to sixth months at 45%. With less than 180 months of contributions, the benefit is paid for up to three months; with at least 180 months of contributions, the benefit is paid for up to six months.
1% of monthly gross covered earnings. The monthly minimum wage used to calculate contributions is the national monthly minimum wage. The national monthly minimum wage for citizens is 220 dinars and 150 dinars for noncitizens. The maximum monthly earnings for contribution purposes are 3,000 dinars. Changes in the consumer price index and the legally defined average covered wage for the previous year are used to adjust the maximum monthly earnings used to calculate contributions.
Insured person: 6.5% of gross monthly covered earnings; voluntary insured: 17.5%.
Employer: 11% of monthly gross covered payroll.
Employers of employees in hazardous occupations must pay an additional 1%.
The monthly pension is calculated by multiplying 2.5% of the insured’s average monthly earnings up to 1,500 dinars by the insured’s months of contributions divided by 12. Average monthly earnings are calculated using the insured’s earnings over the previous 36 months.
Jordan’s public healthcare is supported by the government and mandatory contributions from the country’s workforce. Every employee in Jordan has a monthly deduction taken from their pay. These employees are then eligible for social security, which entitles them to free or reduced-cost healthcare.
Private companies may offer workers compensation benefits for employees in addition to benefits described in the Jordanian Labor Law.
Some companies may offer retirement/pension fund benefits to their employees in addition to benefits required by Jordanian Labor Law.
Some companies may offer health insurance benefits to their employees over and above the benefits required by Jordanian Labor Law.
Insurance benefits may be offered by private companies in addition to benefits described in the Jordanian Labor Law.
The tax year in Jordan is the calendar year running from 1 January to 31 December.
Taxable income (JOD*) | PIT rate (%) |
The first 5,000 | 5 |
The second 5,000 | 10 |
The third 5,000 | 15 |
The forth 5,000 | 20 |
Over 20,000 and up to 1,000,000 | 25 |
The remaining balance | 30 |
Personal income tax is determined using the progressive tax technique. This implies that as taxable income rises, the tax rate does too.
Jordan has signed double taxation agreements (DTAs) with a number of nations.
The tax duties of a person are based on their residency status, including the forms of income that are taxable in Jordan and the applicable tax rates. In general, Jordanians pay taxes on their worldwide income, while non-citizens pay taxes exclusively on their income earned within Jordan.
There are no predetermined dates on which employees must be paid.
Rebates and tax credits are used as incentives to promote particular patterns of behavior or activities, including investment in particular sectors of the economy or the purchase of particular goods and services.
In Jordan, employers are obligated to offer their workers health insurance. Depending on the industry, different benefits and contribution amounts may be necessary.
The first month of unemployment is paid at 75% of the insured’s last monthly covered earnings; the second month at 65%; the third month at 55%; and the fourth to sixth months at 45%. With less than 180 months of contributions, the benefit is paid for up to three months; with at least 180 months of contributions, the benefit is paid for up to six months.
Insured person: 6.5% of gross monthly covered earnings; voluntary insured: 17.5%.
Employer: 11% of monthly gross covered payroll.
Employers of employees in hazardous occupations must pay an additional 1%.
An employee’s basic salary, overtime, allowances, bonuses, commission, benefits and stock options are just a few of the elements that make up an employee’s income.
Subject to the terms of employment specified in the collective bargaining agreement or labor contract and are not mandated by Jordanian labor legislation.
The labor legislation does not directly specify employee benefits in kind, but it does provide written agreements between the employer and employee regarding supplementary benefits.
Investment income is considered taxable.
All employers are required by law to offer their employees retirement plans. A specific portion of each employee’s salary must be contributed by the employer to the pension fund and employees may also contribute a portion of their salary to the fund.
Jordan’s public healthcare is supported by the government and mandatory contributions from the country’s workforce. Every employee in Jordan has a monthly deduction taken from their pay. These employees are then eligible for social security, which entitles them to free or reduced-cost healthcare.
The Jordanian Labor Law does not directly mention employee risk insurance. The law does, however, allow for agreements to be made between an employer and an employee regarding benefits and working conditions. The terms of risk insurance coverage, including eligibility and benefits, are established by the Social Security Law. Additionally, the Social Security Law provides certain risk insurance protection.
Personal income tax is determined using the progressive tax technique. This implies that as taxable income rises, the tax rate does too. Investment income is also considered as taxable.
Employers in Jordan are allowed to deduct income tax and Social Security contributions from their employees pay. However, deductions cannot amount more than 50% of an employee’s total earnings. Employees’ salaries may be withheld to cover appropriate advance payments, provident fund contributions, and loan repayments.
Payroll taxes include income tax ( personal and/or investment ), Social Security contributions as well as Provident fund contributions.
The first month of unemployment is paid at 75% of the insured’s last monthly covered earnings; the second month at 65%; the third month at 55%; and the fourth to sixth months at 45%. With less than 180 months of contributions, the benefit is paid for up to three months; with at least 180 months of contributions, the benefit is paid for up to six months.
Insured person: 6.5% of gross monthly covered earnings; voluntary insured: 17.5%.
Employer: 11% of monthly gross covered payroll.
Employers of employees in hazardous occupations must pay an additional 1%.
The Jordanian Labor Law provides for workers’ compensation in case of work-related injuries or illnesses. Compensation amount is determined based on the type and severity of the injury or illness, as well as the employee’s salary. Changes in the consumer price index and the legally defined average covered wage are used to adjust maximum monthly earnings used to calculate contributions.
Personal income tax is determined using the progressive tax technique. This implies that as taxable income rises, the tax rate does too. Investment income is also considered as taxable.
Payroll taxes include income tax ( personal and/or investment ), Social Security contributions as well as Provident Fund contributions.
The first month of unemployment is paid at 75% of the insured’s last monthly covered earnings; the second month at 65%; the third month at 55%; and the fourth to sixth months at 45%. With less than 180 months of contributions, the benefit is paid for up to three months; with at least 180 months of contributions, the benefit is paid for up to six months.
Insured person: 6.5% of gross monthly covered earnings; voluntary insured: 17.5%.
Employer: 11% of monthly gross covered payroll.
Employers of employees in hazardous occupations must pay an additional 1%.
1% of monthly gross covered earnings. The monthly minimum wage used to calculate contributions is the national monthly minimum wage. The national monthly minimum wage for citizens is 220 dinars and 150 dinars for noncitizens. The maximum monthly earnings for contribution purposes are 3,000 dinars. Private companies may offer workers compensation benefits for employees in addition to benefits described in the Jordanian Labor Law.
Includes paid annual leave, sick leave, maternity leave, paternity leave and 16 public holidays.
Private companies may also include other benefits such as, but not limited to, housing-,transportation- and meal allowances as well as life or disability insurance.
This information is provided solely for informational purposes and should not be used as a substitute for professional advice in any jurisdiction. You should hire your own legal, tax, and accounting professionals as part of your worldwide payroll needs.
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