Country Payroll Guide Jordan

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Key Facts

Capital
Amman
Date format
dd/mm/yyyy
Currency
Jordanian Dinar (JOD)
VAT
the standard rate is 16%

Contributions

Employers

Social Security
Social Security - 14.25%
Total Employment Cost
Total Employment Cost - 14.25%

Employees

Social Security
Social Security - 7.5%
Total Employee Cost
Total Employee Cost - 7.5%

Minimum Wage

Minimum Wage
The minimum wage in Jordan is JOD per month.

Payroll

Payroll Cycle
Monthly

Income Tax

Employee Income Tax (1)
Less than 5,000 JOD - 5%
Employee Income Tax (2)
5,001 to 10,000 JOD - 10%
Employee Income Tax (3)
10,001 to 15,000 JOD - 15%
Employee Income Tax (4)
15,001 to 20,000 JOD - 20%
Employee Income Tax (5)
20,001 to 1,000,000 JOD - 25%
Employee Income Tax (6)
Over 1,000,001 JOD - 30%

Working Hours

General Working Hours

48 hours per week.

Overtime

Paid overtime at a minimum rate of 125% to 150%.

Leave

Paid Time Off

Every employee should get 14 days of annual leave with full pay per year of service. Once the employee works for you for five successive years, they should get 21 days of leave.

Public Holidays

8 public holidays.

Sick Days

Every worker is entitled to 14 days a year of sick leave with full pay on the basis of a report by the medical practitioner approved by the establishment.

Maternity Leave

Maternity leave includes 10 weeks of paid time off and an hour a day for breastfeeding during the first year after the delivery. Mothers can also take a year of unpaid leave after the birth.

The law ensures that employers will not terminate a female employee’s job or give them notice about termination past their sixth month of pregnancy or while they’re on maternity leave.

Other Leave

Every worker is entitled to fourteen days a year of paid leave to go on pilgrimage, provided that he has been in the employer’s service for at least five consecutive years. Such leave shall only be granted once during the worker’s period of service.

Every worker is entitled to four months of unpaid leave if he/she wishes to study in an officially recognized university, institute or college.

Termination

Termination Process

According to Section 21 of the Labour 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
  • the worker dies or is no longer capable of working due to a disease or disability certified by the medical authority

An employer may dismiss the worker without notice, if:

  • the worker assumes false identity or submits false certificates or documents with the purpose of acquiring a benefit or causing prejudice to others
  • the worker fails to fulfill the obligations stipulated in the contract of employment
  • the worker commits a fault causing the employer considerable material damage, provided that the employer notifies the appropriate bodies of the accident within five days from the date on which he learns of its occurrence
  • the worker, in spite of receiving two written warnings, fails to observe the internal regulations of the establishment, including safety regulations
  • the worker is absent from work without good cause for more than twenty days intermittently, during any one year, or for more than ten consecutive days, provided that, prior to the dismissal, written notice is sent to his address by registered mail and published, at least once, in a daily local newspaper
Notice Period

If notice is given by the employer, he may release the worker from work for the duration of the notice period, or he may not do so except for the last seven days of that period. In any case, the worker shall be entitled to his remuneration for the notice period.

If it is the worker who gives notice, and he leaves work before the end of the notice period, he shall not be entitled to any remuneration for the period of absence and shall compensate the employer by paying him the equivalent of his own remuneration for that period.

Severance Pay

If a worker’s employment is terminated for any reason before he uses up his annual leave, he shall be entitled to receive his remuneration for all remaining leave days.

Probation Period

3 months.

Visa

Employment Visa

To legally hire a foreigner to work for your company in Jordan, they will need a work visa and permit. A work visa gives them permission to enter the country for work purposes while a work permit in Jordan gives your employees the ability to work once they arrive. All foreign employees will need a residence permit. These differ based on the circumstances for applying, such as marriage to a Jordanian national or employment in the country.

All residence permits are valid for a year and can be renewed annually. After living in Jordan permanently for several years, an individual can apply for citizenship or a five-year residence permit.