Employment contracts in Jordan must be in Arabic, with an original copy generated for each party. If the employee is a foreigner, then a third signed translated copy is required and should be attached to the Arabic contract. There are two kinds of contracts in Jordan. An indefinite contract has a start date but no end date and does not expire until employment is terminated. A fixed-term contract has a defined start and end date. An employer who wants to hire a foreigner should provide an annually renewed bank sponsorship and submit an application to the Ministry of Labour.

The Tripartite Committee for Labor Affairs decided to fix the minimum wage in Jordan at JOD 260 for the years 2023 and 2024.

8 hours per day, 48 hours per week, Sunday to Thursday.

Overtime

When an employee is requested to work overtime or work on holidays, there are maximums in relation to the number of hours allowed. Subject to Article 57 of the Labor Law, obligatory overtime is capped at 30 days per year.

Overtime must be paid at a rate of 125% salary on working days and 150% salary on holidays or rest days. Exemptions might apply for certain workers e.g. supervisors and managers.

Employees are entitled to 14 days a year at full pay by the employer. A further 14 days might be required in cases of hospitalization or based on a doctor’s recommendation.

Maternity Leave

Pregnant employees 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. After returning from maternity leave, the woman is entitled to one hour’s leave during the workday to nurse the child until the child reaches the age of one.

Employers with at least twenty married women workers in their employment shall provide an adequate facility under the care of a trained nurse for the employees’ children under four years of age if at least ten of them are in such an age group.

Paternity Leave

The amended labor law grants new fathers three days’ leave from work with full pay after the birth of a child, whereas before, the labor law previously made no provision for paternity leave.

Employees are entitled to a minimum of 15 days of annual paid leave increasing to 21 days after five years of service. Each employer can decide their own carryover policy.

There are no other types of statutory leave.

Holidays falling on weekends are moved to the following Monday as a day off in lieu.

Certain religious holidays are determined by the lunar cycle and will be confirmed nearer the date of the holiday.

Date Day Holiday Notes

1 Jan 2024 - Monday - New Year’s Day

24 Mar 2024 - Sunday - Palm Sunday - Optional Holiday

9 Apr 2024 - Tuesday - Eid al-Fitr Holiday

10 Apr 2024 - Wednesday - Eid al-Fitr Holiday

11 Apr 2024 - Thursday - Eid al-Fitr Holiday

12 Apr 2024 - Friday - Eid al-Fitr Holiday

1 May 2024 - Wednesday - Labour Day

5 May 2024 - Sunday - Orthodox Easter Day - Optional Holiday

6 May 2024 - Monday - Orthodox Easter Monday - Optional Holiday

25 May 2024 - Saturday - Independence Day

15 Jun 2024 - Saturday - Arafah - Tentative

16 Jun 2024 - Sunday - Eid al-Adha - Tentative

17 Jun 2024 - Monday - Eid al-Adha holiday - Tentative

18 Jun 2024 - Tuesday - Eid al-Adha holiday - Tentative

19 Jun 2024 - Wednesday - Eid al-Adha holiday - Tentative

7 Jul 2024 - Sunday - Muharram/New Year - Tentative

15 Sep 2024 - Sunday - Prophet’s Birthday - Tentative

25 Dec 2024 - Wednesday - Christmas Day

26 Dec 2024 - Thursday - Boxing Day

The healthcare system in Jordan is comprised of public and private options.

The termination process varies according to the employment agreement or collective bargaining agreement and is based on the type of contract and reason for termination. The regular termination process is as follows: At least one month before the intended ending day, the employer or employee must provide a written notice of termination.

The employee will be entitled to all benefits and entitlements as specified by the contract if the employment is for a set period of time and can be terminated before its expiration date by the employer or the employee for any of the reasons listed in section 29 of this Code (the work is different from that agreed upon; circumstances requiring a change of residence; medical reasons).

Either the employee or employer can terminate the employment contract at any time. Notice in writing is required. 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, or the employee dies or is no longer capable of working due to a disease or disability certified by the medical authority.

It is recommended to be careful when terminating the employment contracts that the employee will not file a case at MOL for Unjustified dismissal. In this case the employee will be entitled to Half month pay for each working year (not less than 2 months’ pay) + Leave balance encashment + overtime(If any) + One month’s notice + additional payments like expenses.

Notice Period

One month’s written notice is required, applied to both employer and worker. No notice is required during the probation period. Limited-term contracts cannot be terminated.

Severance

Severance must be given to workers if they are not subject to the Social Security law paid as an “end of service compensation” at a rate of one month’s pay for each year of service.

Employer Payroll Contributions
14.25% - Social Security

14.25% - Total Employment Cost

Employee Payroll Contributions
7.50% - Social Security and Pension

7.50% Total Employee Cost

Employee Income Tax
5.00% - Up to 5,000 JOD

10.00% - 5,000 JOD – 10,000 JOD

15.00% - 10,000 JOD – 15,000 JOD

20.00% - 15,000 JOD – 20,000 JOD

25.00% - 20,000 JOD – 1,000,000 JOD

30.00% - 1,000,000 and over
Any amount exceeding JOD 200,000 of the annual taxable income for individuals will be subject to 1% as national contribution tax.

Payroll Frequency

The payroll frequency in Jordan is monthly. Payments must be made on the same day of each month and no later than the last working day of each month. Some employers choose to pay their employees on a bi-weekly basis.

Work/employment visa can be obtained upon the request of the employer. The company that intends to hire foreign nationals shall submit the application on behalf of its employee with the demonstration of a viable contract. An official work permit should be issued by the Ministry of Labor in line with the Art. 12 of the labor law in Jordan.

However, there are strict conditions with regard to the eligible conditions; most importantly, the employer must prove that the vacancy cannot be filled by any other Jordanian worker due to the lack of required experience and qualification or the number of Jordanian workers who are eligible for the vacancy are not sufficient thus, it fails to meet the needs of the corporation.

The standard VAT rate in Jordan is 16%.