Jordan Employment Guide

Understanding Minimum Wage Regulations in Jordan

Jordan's labor market operates with a tiered minimum wage system, distinguishing between national and foreign workers. For Jordanian nationals, the mandated monthly minimum wage stands at 260 Jordanian Dinars (JOD). Conversely, employees of other nationalities are entitled to a minimum of 230 JOD per month. This distinction is a critical first step for any HR professional managing a diverse workforce in the country.

Navigating Jordan's Personal Income Tax Structure

Jordan employs a progressive income tax system, meaning the tax rate increases as an employee's annual income rises. This structure ensures a fair contribution based on earning capacity. The specific brackets are detailed below for precise payroll calculations.

Calculating Total Employment Costs

Beyond the gross salary, employers must factor in mandatory social security contributions. In Jordan, the employer's share is typically 14.25% of the employee's wage. It is important to note that social security calculations are capped at a monthly salary of 3,394 JOD. For instance, hiring a Jordanian employee at the minimum wage would incur an additional monthly cost of approximately 37 JOD (14.25% of 260 JOD).

Additionally, companies should budget for one-time administrative expenses, such as the cost of printing and processing employment agreements, which can be around 57 JOD. For accurate, project-specific budgeting that includes all potential fees, consulting with a specialized provider like SailGlobal is highly recommended.

Overtime and Standard Working Hours

The standard work schedule in Jordan is defined as 8 hours per day or 40 hours per week, typically from Sunday to Thursday. However, the labor law permits extending the workweek to a maximum of 48 hours over six days. Compliance with overtime regulations is essential to avoid legal complications and maintain positive employee relations. A common scenario involves compensating work beyond the standard 8-hour day at a premium rate, a practice that must be clearly outlined in employment contracts.