2026 Jordan Employment Guide: Minimum Wage, Social Security and Termination

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2026 Jordan Employment Guide: Minimum Wage, Social Security and Termination

2026 Jordan Employment Guide: Minimum Wage, Social Security and Termination

2026 Jordan Employment Guide: Minimum Wage, Social Security and Termination

A practical 2026 Jordan employment guide covering the JOD 290 minimum wage, SSC payroll, working time, leave, foreign workers and termination.

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This 2026 Jordan employment guide explains Jordan employment contracts, the JOD 290 minimum wage, Jordan payroll, Social Security Corporation (SSC) contributions, working time, leave and termination. Employers should confirm nationality, occupation, industry, contract duration, pay components and SSC history before hiring or costing a role.

For Chinese companies hiring employees in Jordan, employment rights, SSC coverage and work authorization are separate compliance tracks. An employer of record (EOR) arrangement may support local hiring, but it does not automatically open a restricted occupation or guarantee a foreign employee's work permit.

1. Jordan Employment Compliance at a Glance in 2026

Topic
2026 baseline
Employer control
Minimum wage
JOD 290 monthly from 1 January 2025 through 31 December 2027
Apply to covered local and foreign employees; check special sectors
Normal working time
8 hours daily and 48 hours weekly
Separate work time, breaks and overtime
Ordinary overtime
At least 125% of normal pay
Itemize hours and premium on payslip
Weekly rest or official/religious holiday work
At least 150% of normal pay
Confirm schedule, religion and applicable holiday
Annual leave
14 days; 21 after five continuous years with the same employer
Accrue in first year and settle unused balance
Sick leave
Normally 14 days at full pay; potentially another 14 with medical conditions
Verify certificate and extension basis
Maternity leave
10 weeks at full pay, including at least six weeks after birth
Coordinate Labour Law leave and SSC benefit eligibility
Probation
Written and no more than three months
Minimum wage still applies; do not repeat probation
Indefinite-contract notice
Normally one month
Separate notice, reason and termination date
SSC
Employee 7.5%; employer 14.25%
Declare actual insurable wage and pay on time

2. Three Employment and Payroll Changes Requiring Action in 2026

Rule
2026 position
Employer action
JOD 290 minimum wage remains effective
The 2025–2027 decision continues throughout 2026
Keep offers, contracts and payroll at or above JOD 290 for covered employees
SSC cost allocation remains split
Employee 7.5%, employer 14.25%, total 21.75%
Show each payer separately; never deduct the employer share from the employee
Religious holidays require annual confirmation
Eid, Hijri New Year and the Prophet's Birthday depend on official announcements
Lock dates and private-sector treatment only after official confirmation

3. Jordan's Employment Law and Regulatory Framework

Source
Main function
Employer impact
Labour Law No. 8 of 1996, as amended
Mandatory private-employment standards
Wages, hours, leave and termination
Social Security Law No. 1 of 2014, as amended
Mandatory SSC system
Pension, injury, maternity and unemployment coverage
Tripartite minimum-wage decision
JOD 290 floor for 2025–2027
Scope, payroll controls and penalties
Collective agreement or sector decision
Binding rules for covered sectors
Garment, textile and other special arrangements
Contract and approved internal rules
Better contractual rights
Allowances, bonuses and additional leave

Jordan has no universal statutory 13th or 14th salary for all private employees. Housing, transport, bonus, flights, medical insurance and meal benefits depend on a CBA, contract, approved rules or established practice.

4. Recruitment, Offers and Onboarding

An offer should state the role, workplace, duration, basic salary, fixed allowances, payday, hours, probation, leave, SSC and termination terms. Arabic is important for local enforceability; bilingual versions should match line by line.

Step
Employer responsibility
Evidence
Worker and role classification
Distinguish local, foreign and special-sector status
Identity, occupation and sector assessment
Contract
Record wage, time, duration, probation and termination
Signed contract and annexes
SSC
Register actual salary and configure 7.5%/14.25%
Registration and payment receipts
Payroll
Configure salary, attendance, overtime and holidays
Master data, payslips and bank records
Safety
Complete risk assessment, training and accident reporting
Training and incident records
Foreign employee
Confirm open occupation and work permit before start
Permit and employer-role consistency

A foreign customer-service employee in Amman earning JOD 350 remains protected by the JOD 290 floor. Whether that individual may obtain a permit for the role is a separate issue. Recruitment fees, permit fees and employer SSC should not be shifted unlawfully to the employee.

5. Employment Contracts, Contract Types and Probation

Contract
Typical use
Main risk
Indefinite
Continuing role
Ordinary termination requires notice; arbitrary dismissal may create compensation
Fixed term
Defined end date or project
Natural expiry differs from early termination
Specific work or project
Objectively identifiable result
Completion criteria must not disguise ongoing employment
Part-time or flexible work
Role below standard hours
Wage, leave and SSC rules still apply

Continued performance after fixed-term expiry may convert the relationship to indefinite employment. An employer ending a fixed term early without lawful grounds may owe remaining contractual salary and benefits. Permanent positions should not be rolled through short contracts merely to reduce termination exposure.

Probation must be written, cannot exceed three months and must pay at least the minimum wage. It cannot restart through repeated renewals. The employer may terminate under the probation rule without notice, but earned salary, accrued leave and SSC remain due. Probation service counts toward continuous service when work continues.

6. Wages, Minimum Wage and Gross-to-Net Payroll

The JOD 290 monthly minimum applies through 31 December 2027 to employees within the Labour Law's scope, regardless of Jordanian or foreign nationality. Special garment, textile and excluded categories require separate review.

If basic pay is JOD 250 and a fixed transport allowance is JOD 40, the employer must verify whether the minimum-wage decision allows that fixed component. A receipt-based expense reimbursement should not automatically fill a wage shortfall.

Wages should be paid no later than seven days after they become due. Payslips should separate basic salary, fixed allowances, overtime, holiday pay, bonus, employee SSC and other lawful deductions. Partial-month pay, unpaid leave and lateness deductions need dated calculations.

Illustrative payroll: JOD 1,000 monthly salary before income tax.

Item
Calculation
Amount
Employee SSC
JOD 1,000 × 7.5%
JOD 75.00
Pre-tax employee balance
JOD 1,000 − JOD 75
JOD 925.00
Employer SSC
JOD 1,000 × 14.25%
JOD 142.50
Salary plus employer SSC
JOD 1,000 + JOD 142.50
JOD 1,142.50

The illustration excludes income tax, overtime, holidays, insurance, permits and service fees. Actual tax withholding depends on current ISTD rules and employee or family deductions.

7. Working Time, Overtime and Records

Item
Statutory baseline
Control
Normal time
8 hours daily, 48 weekly
Separate working time and meal breaks
Ordinary overtime
At least 125% of normal wage
Record approval, hours, base and premium
Weekly rest work
At least 150%
Confirm rest day and replacement arrangements
Official or religious holiday work
At least 150%
Use official announcement and employee religion
Weekly rest
Continuous weekly rest normally required
State the rest day in contract and schedule

Government Ramadan hours, such as 09:00–14:30 in 2026, primarily cover government and wholly state-owned bodies and are not a universal private-sector schedule. Private employers should apply the Labour Law, contract and sector rules.

Lack of prior approval does not necessarily remove payment for overtime that the employer ordered, permitted or knew about. Occupational injury should be handled through the SSC injury branch rather than reclassified as ordinary sickness.

8. Public Holidays, Annual Leave and Other Statutory Leave

Annual leave is 14 days and increases to 21 days after five continuous years with the same employer. First-year entitlement accrues proportionately. Nine months of service gives an illustrative 14 × 9 ÷ 12 = 10.5 days; after four days used, about 6.5 remain, subject to payroll-unit rules.

Leave
Statutory baseline
Employer action
Annual leave
14 days; 21 after five years
Accrue from start and settle unused balance
Sick leave
Normally 14 days at full pay
Obtain recognized medical certificate
Extended sickness
Another 14 full-pay days may apply under specified hospital or medical conditions
Do not automatically promise 28 days in every case
Maternity leave
10 weeks full pay, at least six after birth
Coordinate statutory leave and SSC maternity benefit
Nursing break
Normally one paid hour daily for one year after maternity leave
Record separately in schedule
Hajj leave
Normally 14 paid days once, after five years' service
Verify service and prior use
Date or window
2026 holiday
Note
1 January
New Year
Official holiday
20–23 March
Eid al-Fitr
Four-day government announcement
30 April
Labour Day observed arrangement
Confirm private-sector application
25 May
Independence Day
Official holiday
26–30 May
Eid al-Adha
Five-day government announcement
16 June
Islamic New Year
Official announcement
Late August
Prophet's Birthday
Confirm official date
25 December
Christmas Day
Apply official and religious arrangements

Government closures and private-sector Labour Law holiday treatment are not identical. Private employers should verify the announcement, employee religion, contract and industry before coding leave or premium pay.

9. Employer Social Security, Mandatory Benefits and Tax

SSC branch
Employee
Employer
Note
Old-age, disability and survivors
6.5%
11.0%
Actual insurable wage
Unemployment
1.0%
0.5%
Covered private employees
Occupational injury
0%
2.0%
Employer-funded
Maternity
0%
0.75%
Employer-funded
Total
7.5%
14.25%
Combined 21.75%

SSC does not create a universal employee medical-insurance deduction. Contractual or plan-based commercial medical insurance must be shown separately. Employers should withhold income tax under current Income and Sales Tax Department rules and obtain employee deduction information before quoting net pay.

Foreign employees should also undergo an SSC applicability review; bilateral arrangements, lump-sum rights and sector rules may change the outcome. SSC coverage does not prove that commercial medical coverage is complete.

For SSC-covered service, ordinary end-of-service indemnity is generally replaced by SSC rights. An uncovered employee may instead be entitled to one month's wage per service year. Employers should segment covered and uncovered months to avoid duplication or omission.

10. Local Employees and Foreign Employees

Topic
Jordanian employee
Foreign employee
Minimum wage
JOD 290 if covered
Same JOD 290 if covered
SSC
Normally employee 7.5%, employer 14.25%
Applicability review; bilateral or sector exception may apply
Onboarding
Contract, SSC, salary and role
Permit, open occupation, contract, SSC and actual-role match
Employer cost
Salary, SSC, leave, overtime and benefits
Same labour cost plus permit, insurance and foreign-worker items
Exit
Contract, notice, SSC and compensation
Also close work-permit procedures

Work-permit eligibility and employment rights are separate. A permit problem does not entitle an employer to withhold wages for work already performed.

11. Remote Work, Data Privacy and Record Retention

A contract or remote-work policy should state the actual workplace, availability, attendance, equipment, expenses, security, occupational health, cross-border restrictions and office-return process. Long-term work from Jordan for an overseas business can create local wage, SSC, tax, data and permanent-establishment exposure; foreign payment does not substitute for compliant employment.

Preserve contracts and amendments, payroll, attendance, leave, SSC, tax, discipline, injury and exit documents. Before transferring identity, health or salary data overseas, control the purpose, recipient, access and retention period. Reconcile payslips, bank payments and SSC filings regularly.

12. Termination, Severance and Final Settlement

Route
Ground or consent
Notice
Settlement
Employer termination during probation
Probation rule
None
Salary, leave and SSC
Indefinite employer dismissal
Genuine lawful reason; arbitrary dismissal may be challenged
Normally one month
Notice, leave and applicable compensation
Indefinite employee resignation
No employer approval required
Normally one month
Salary, leave and SSC
Fixed-term expiry
Contractual expiry
Contract terms
Salary, leave and applicable rights
Early fixed-term termination
Lawful or contractual ground
Not the same as expiry
Remaining-term salary risk
Summary dismissal
Only statutory Article 28 serious misconduct with evidence
None
Accrued rights do not automatically disappear
Economic or technical termination
Genuine reason and competent procedure
Approved statutory process
Notice and applicable compensation
Mutual agreement
Genuine voluntary consent
Agreed date
Separate statutory and additional payments

An employee may challenge arbitrary dismissal within the statutory period. A court may order reinstatement or compensation at half a month's wage per service year, normally with a minimum of two months, plus notice and other rights.

Illustrative arbitrary dismissal: Indefinite employee earning JOD 1,000 monthly, four years' service, seven unused leave days, one month notice pay and full SSC coverage.

Item
Calculation
Amount
Current-month salary
Fixed
JOD 1,000.00
Notice pay
One month
JOD 1,000.00
Unused leave
JOD 1,000 ÷ 30 × 7
About JOD 233.33
Arbitrary-dismissal compensation
0.5 month × 4 years
JOD 2,000.00
Illustrative total
Before tax and other items
About JOD 4,233.33

Ordinary end-of-service indemnity is not added again for fully SSC-covered service. Actual legal and payroll treatment depends on facts, wage basis, contract and court outcome.

13. Hiring Model: Entity, EOR or Payroll Outsourcing

Model
Suitable case
Main control
Local entity
Long-term team, scale or regulated business
Entity owns salary, SSC, tax, permit and termination compliance
EOR
No entity and a small number of hires
Verify entity, open role, foreign permit and management boundary
Payroll outsourcing
Existing lawful employer needing payroll support
Outsourcing calculation does not transfer Labour Law liability
Contractor
Genuinely independent services
Avoid fixed control and employee-like integration

An EOR or payroll arrangement requires case-specific feasibility review. For local employees, confirm employer, SSC, wage and termination workflow. For foreign employees, also confirm the occupation is open, the correct employer sponsors the permit and actual management matches the approved arrangement.

14. Common Jordan Employment Risks for Chinese Companies

Risk
Typical error
Control
Old minimum wage
Using JOD 260 in 2026
Update contract and payroll to JOD 290 and check sector rules
Foreign worker excluded from minimum
Treating JOD 290 as Jordanian-only
Separate Labour Law rights from permit eligibility
SSC shares confused
Treating 21.75% as entirely employer-funded
Deduct 7.5% and pay employer 14.25% separately
End-of-service duplicated or omitted
Full indemnity added for SSC service or ignored for uncovered service
Segment service by SSC coverage
Government Ramadan hours copied
Applying 09:00–14:30 to all private workers
Use private Labour Law, contract and sector schedule
First-year leave erased
Accrual starts only after one year
Accrue from start and settle proportionately
Probation repeated
New three-month probation on renewal
Use probation once within the same relationship
Notice treated as no-cause right
One month pay assumed sufficient
Review reason, evidence, protection and procedure
Fixed-term early exit mislabelled
Early termination called natural expiry
Identify contract type and calculate remaining-term exposure
Holiday calendar hard-coded
Government or lunar date used without review
Confirm official date and private-sector treatment
Unrecorded overtime
Approval policy used to deny known work
Record actual hours and statutory premium
Permit and employment rights mixed
Permit difficulty used to deny earned salary
Verify before start and pay lawful accrued rights
EOR client acts as employer
Client directly disciplines or dismisses
Contractual employer must make lawful decisions
Contractor misclassification
Employee-like control under consulting agreement
Test autonomy, substitution and commercial risk
Cross-border remote work unmanaged
Overseas pay assumed to remove Jordan duties
Review wage, SSC, tax, data and establishment exposure