Definitive Guide to Hiring in Jordan

Hiring in Jordan

Hiring employees compliantly in Jordan means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Jordan so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Jordan; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Jordan

Employment laws in Jordan are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Jordan employment laws and Jordan policies here.

Employee Probation Period

Annual Leave in Jordan

• Every worker is entitled to annual leave with full pay for a period of fourteen days for every year of employment. 
• This leave is extended to twenty-one days where the worker has been in the employment of the same employer for five consecutive years.

Holidays in Jordan

Maternity Leave Jordan

• Women workers are entitled to maternity leave with full pay for ten weeks including rest before and after delivery. 
• Leave after delivery shall be no less than six weeks long and employment before the expiry of such a period shall be prohibited.
• After the expiry of the maternity leave period, every woman worker is entitled, within one year of delivery, to take time off with pay for the purpose of nursing her newborn baby, provided that total time off does not exceed one hour a day.

Paternity Leave Jordan

Sick Leave in Jordan

• Every worker is entitled to fourteen days a year of sick leave with full pay on the basis of a report by the medical practitioner approved by the establishment. 
• Sick leave may be extended to a further fourteen days with full pay if the worker is hospitalized and with half pay if the worker is not hospitalized but provides a report from a medical commission approved by the establishment.

Working Hours in Jordan

Overtime in Jordan

• A worker may be employed, with his consent, in excess of normal working hours, provided that he is paid overtime at a minimum rate of 125% of his regular remuneration. 
• If a worker works on his weekly rest day or on religious or official holidays, he shall be paid overtime at a minimum rate of 150% of his regular remuneration.

Termination of Employment in Jordan

• According to Section 21 of the Labor 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.
• The death of an employer shall not bring about the termination of the contract of employment unless the contract took into consideration the personality of the employer.
• Jordanian Labor Code makes distinction between ordinary termination (with notice) and extraordinary termination (without notice).
• One of the two parties to the contract of employment of indefinite duration shall give the other party written notice at least one month in advance. 
• 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.
• Employees working for unlimited period and not subject to the provisions of the Social Security Law, and whose service is terminated for any reason may acquire the end of service remuneration in a rate of a month wage for each year of his/her actual service

Notice Period in Jordan

• One of the two parties to the contract of employment of indefinite duration shall give the other party written notice at least one month in advance. 
• 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.

Severance in Jordan

Jordan Salary and Wages

13th/14th Month Salary in Jordan

• No
• There is no statutory requirement to pay the 13th and the 14th month salary.
• Employees are entitled to 21 days holidays.

• Social security contributions are levied at a rate of 21.75% on gross salary except overtime. 
• The employer’s share is 14.25%, and the employee’s share is 7.5%. 
• The social security system provides retirement and death benefits as well as certain benefits for work-related injuries.

Immigration Jordan

• Individuals of all nationalities must apply for work and residency permits if they want to work in Jordan, with a priority given to Arab nationals. 
• Work and residency permits are issued with the approval of the Ministry of Labor and the Ministry of Interior. 
• An applicant may not begin working in Jordan before obtaining work and residency permits.
• Work and residency permits may not be transferred from one employer to another; therefore, if an employee changes employers, the previous work and residency permits must be canceled, and the employee must apply for new work and residency permits. 
• The work and residency permits are valid for one year and may be renewed on an annual basis.
• As a prerequisite to obtain work and residency permits, the Ministry of Labor requires the employer to submit a bank letter of guarantee to the order of the Ministry of Labor for each expatriate employee seeking work and residency permits in Jordan. 
• Under the Jordanian Labor Law, certain occupations are exclusively reserved to Jordanians and may not be filled by non-Jordanians, such as those in the fields of medicine, engineering, accounting and administration, as well as clerical work, such as data entry and secretarial work, warehousing, hairdressing, teaching, and mechanical and car repair type of work.

Value Added Tax (VAT) in Jordan

• A general sales tax similar in operation to a value-added tax (VAT) is imposed at the rate of 16% on the following transactions:-
  • Sales of goods or services or both.
  • Importing any service or goods from outside Jordan or from the free zone areas and markets inside Jordan.
• With reduced rates and exemptions granted on certain products and services, and a higher rate (depending on the item) applying to certain luxury items.

Payments And Invoicing

• The tax year in Jordan is the calendar year. 
• However, a taxpayer who closes one's accounts on a date other than the end of the calendar year may calculate one's tax according to the fiscal year, provided that prior approval is obtained from the Director General of the Income and Sales Tax Department. 
• Taxpayers are obligated to file tax returns before the end of the fourth month following the end of the tax period.
• Married taxpayers can file a joint tax declaration. 
• Taxpayers are obligated to pay income taxes before the end of the fourth month following the end of the tax period.
• A taxpayer who is carrying out business activities and whose gross income in the previous tax period exceeded JOD 1 million from these activities is required to remit two advance payments on the accrued income tax from these activities using the rates determined for each tax period mentioned in the following schedule. 
• The advance payments are calculated according to the income tax in the financial statements presented to the Income and Sales Tax Department for the concerned period. 
• In the absence of the financial statements for this period, the income tax included in the immediately preceding tax declaration will be used to calculate the advance payments.
• The first advance payment is due within a period not exceeding 30 days from the last day of the first half of that income tax period.
• The second advance payment is due within a period not exceeding 30 days from the last day of the second half of that income tax period.
• For the tax year 2015 and following periods, the advance payment is 40%.

Payroll Accrual in Jordan

Payroll Accruals Additional Information

Accrued Benefits in Jordan

Why use Global Expansion to hire in Jordan

Establishing a branch office or subsidiary in Jordan can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Jordan labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Jordan law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Jordan. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Jordan Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.