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Minimum wage in Jordan

Jordan's payroll structure

Statutory benefits in Jordan

Additional employee benefits in Jordan

Simplify payroll management in Jordan with CXC

Payroll in Jordan

Managing payroll in Jordan requires a careful balance of compliance, consistency, and local know-how. Employers must align with regulatory standards around salary payment timelines, tax obligations, and statutory contributions. The typical payroll cycle in Jordan is monthly, with salaries required to be paid no later than the final working day. While some companies opt for bi-weekly payments, the law prioritises consistency and transparency in payment practices.

Employers are also responsible for calculating and remitting both income tax and social security contributions. Income tax is withheld at progressive rates ranging from 5% to 30%, depending on the employee’s earnings. In addition, employers contribute 14.25% of an employee’s gross salary to the Social Security Corporation (SSC), while employees contribute 7.5%. These contributions support a broad range of benefits, including pensions, maternity leave, unemployment insurance, and disability coverage.

For businesses operating across borders or scaling quickly, navigating these local nuances can be time-consuming. That is where payroll outsourcing in Jordan becomes valuable. Outsourced providers ensure all deductions, filings, and reporting obligations are handled correctly freeing internal teams to focus on strategic goals.

As benefits expectations rise, employers in Jordan are also enhancing their offerings beyond the statutory minimum. From private health insurance and transport allowances to annual bonuses and supplemental pension schemes, the structure of employee compensation is becoming more dynamic. Aligning these non-statutory benefits with accurate payroll processes is key to maintaining workforce satisfaction and legal compliance.

Many international companies turn to trusted partners for payroll services in Jordan to manage everything from onboarding to payslips, social security registration, and year-end tax documentation. A partner like CXC offers fully compliant payroll solutions in Jordan, tailored to the needs of distributed teams and growing businesses. Through local expertise and global support, CXC helps employers simplify payroll operations while meeting all legal obligations.

Whether you are new to the Jordanian market or expanding your team, a solid payroll foundation is critical to building trust with employees and operating successfully in the region.

Minimum wage in Jordan

Employers hiring in Jordan need to ensure that their payroll practices align with the country’s statutory wage floor. The government periodically revises this benchmark to reflect changing economic conditions and cost-of-living pressures. As of January 2025, the minimum wage in Jordan has increased, impacting all industries and sectors unless otherwise specified by exemption.

What is the minimum wage in Jordan?

From 1 January 2025, the monthly minimum wage in Jordan was raised from 260 JOD to 290 JOD. This increase reflects ongoing efforts by the government to support household incomes and protect workers from inflation.

Jordanian labour law strictly prohibits employers from paying less than the prescribed minimum wage. The law also prohibits wage discrimination based on gender, nationality, or employment type. Companies found underpaying workers may face penalties, including fines or legal action. These rules apply regardless of whether the employee is working full-time, part-time, or on a fixed-term contract.

While the law does not specify a national minimum wage in Jordan per hour, employers can calculate the hourly equivalent by dividing the monthly rate by the standard working hours—typically 208 hours per month (8 hours per day, 5 days a week). This works out to approximately 1.39 JOD per hour under the new minimum wage.

It is also worth noting that some sectors, such as domestic work and agriculture, have historically been governed by separate wage standards or exemptions. Employers should always check for any updates or clarifications specific to their industry.

Jordan’s minimum wage in USD

For international employers or remote teams benchmarking salaries, it is helpful to translate the statutory rate. As of the latest exchange rate, Jordan’s minimum wage in USD is approximately 409 USD per month. This figure will vary depending on currency fluctuations, so employers are encouraged to monitor exchange rates regularly or rely on local payroll providers.

Foreign companies hiring in Jordan should ensure their salary offers comply with national standards and take into account other payroll obligations, including social security contributions and any applicable benefits. Partnering with a trusted Employer of Record can help streamline compliance while allowing you to focus on building your team.

Ultimately, respecting the minimum wage requirement is not only a legal obligation but also an important signal of fair employment practices and a foundation for positive employee relations.

Jordan's payroll structure

Establishing accurate and compliant payroll systems is a key responsibility for any employer operating in Jordan. With specific timelines, contribution requirements, and tax rates, managing Jordan’s payroll involves more than just calculating salaries. Employers must stay on top of monthly payments, reporting obligations, and regulatory caps to avoid penalties or employee dissatisfaction.

Payroll frequency in Jordan

The standard payroll frequency in Jordan is monthly. Salaries must be paid on the same date each month, and no later than the final working day. Employers may choose to run payroll more frequently—such as on a bi-weekly basis—but must still ensure that monthly entitlements and deductions are processed correctly.

Employers are expected to document each payment cycle clearly, issue payslips, and ensure transfers are made in Jordanian Dinar unless agreed otherwise. Delays or inconsistent payroll practices can raise legal issues and damage employer reputation.

Payroll tax in Jordan

The payroll tax in Jordan consists of two main components: social security contributions and income tax withholding.
Social security:

Employers contribute 14.25% of the employee’s gross salary, up to a capped salary of 3,349 JOD per month.
Employees contribute 7.5% of their gross salary to the scheme.

These contributions fund pensions, disability insurance, maternity leave, and unemployment benefits.
Personal income tax:

Employers are responsible for withholding tax based on a progressive scale, ranging from 5% to 30% depending on the employee’s income level.
The first portion of annual income is tax-exempt, with rates increasing in tiers.

Employers must file monthly tax declarations and remit withheld amounts to the tax authorities in accordance with Jordanian law.

Best practices when managing payroll in Jordan

To ensure smooth operations, employers should:

Maintain up-to-date employee records including contracts, salaries, and tax identification numbers.
Automate payroll processes where possible to reduce errors.
Stay informed on changes to wage caps, tax brackets, and contribution rates.
Partner with local payroll providers or an Employer of Record for on-the-ground compliance support.

Given the multi-layered nature of Jordan’s payroll requirements, outsourcing these functions can ease administrative burdens while ensuring local laws are met. A trusted payroll partner can also assist with auditing, reporting, and cross-border payments if your workforce includes expatriates.

By taking a proactive approach to payroll management, employers not only stay compliant but also reinforce trust with their employees—an important foundation for long-term success in the Jordanian market.

Statutory benefits in Jordan

When employing staff in Jordan, it is important to account for both mandatory entitlements and customary benefits. These statutory requirements reflect the country’s labour protections and form a core part of the employer’s responsibilities. Among the most significant are annual leave entitlements, paid sick days, maternity leave, and contributions to social security in Jordan.

Social security in Jordan

All employers in Jordan must register with the Social Security Corporation (SSC) and make monthly contributions on behalf of their workforce. The contribution structure is shared between the employer and employee: employers pay 14.25% of an employee’s gross salary, while employees contribute 7.5%. These contributions are capped at a maximum insurable salary of 3,349 JOD per month.

The scope of Jordan’s social security law includes coverage for retirement, disability, workplace injuries, maternity, unemployment, and death. Employers who fail to comply with their obligations may face penalties, back payments, or even legal proceedings.

Registration with the SSC is required once an employment contract is signed, and remittances must be made regularly. Accurate recordkeeping is vital, especially when managing short-term contracts or remote employees who remain eligible for SSC coverage.

Pension benefits in Jordan

The SSC also administers pension benefits in Jordan, which are based on an employee’s contribution history and salary level. Upon reaching retirement age (typically 60 for men and 55 for women), employees are eligible to claim a monthly pension.

Early retirement options are available under specific conditions, though these may result in reduced benefit amounts. The pension is designed to provide post-employment income security and is calculated as a percentage of the employee’s average salary over their contribution period.

While some employers go beyond the statutory minimum by offering supplementary schemes such as private retirement plans or end-of-service bonuses, these are not required under law. That said, such benefits can be valuable tools for attracting and retaining top talent.

In summary, statutory benefits in Jordan serve both protective and social functions. They ensure baseline financial security for employees while giving employers a clear framework for legal compliance. Businesses looking to streamline their local operations may benefit from working with an Employer of Record that can handle all social security and statutory obligations on their behalf.

Additional employee benefits in Jordan

While statutory benefits set the legal minimum for employment conditions in Jordan, many employers go a step further by offering a broader range of incentives to attract and retain top talent. These additional perks, though not required by law, reflect evolving workforce expectations and can give companies a competitive edge. From flexible work arrangements to investment opportunities, there is a growing trend toward enhancing employee benefits in Jordan beyond the basics.

Health insurance in Jordan

Although Jordan has a public healthcare system, many employers supplement this by offering private health insurance. These plans typically cover a wider range of services, shorter waiting times, and access to private hospitals or specialists.

Providing health insurance in Jordan is especially valued by professionals in sectors like finance, ICT, and consulting, where employer-sponsored medical coverage is often expected. Coverage may extend to family members and include dental, optical, and wellness benefits.

Pension fund in Jordan

Beyond contributions to the Social Security Corporation, some companies offer access to a private pension fund in Jordan. These employer-sponsored schemes allow staff to build additional retirement savings through matched contributions or voluntary deductions.

Such benefits are particularly attractive to mid-career and senior professionals looking for long-term financial security. While not mandatory, establishing a supplemental pension or savings fund signals that the employer is invested in the long-term wellbeing of its workforce.

Annual bonus in Jordan

Performance-based bonuses are increasingly common in Jordan, especially in private sector industries. An annual bonus in Jordan may be tied to individual, team, or company-wide performance and is often distributed at year-end or during major holidays such as Eid.

While these bonuses are discretionary, they are becoming an informal norm in some sectors. For employers, they serve as a useful tool for recognising achievement, boosting morale, and improving retention.

Stock option plans in Jordan

Although less common than in Western markets, stock option plans in Jordan are starting to emerge, particularly among startups and tech firms. These plans allow employees to purchase company shares at a preferential rate, aligning their success with that of the organisation.

Stock options are most relevant for companies looking to compete globally for specialised talent. They can also help retain key employees during the critical growth stages of a business.

Other additional employee benefits in Jordan

Employers in Jordan may offer a variety of non-statutory benefits tailored to the needs of their workforce:

Transport allowances: Reimbursements or stipends to cover commuting costs.
Flexible work arrangements: Options to work remotely or adjust working hours.
Relocation support: Assistance with moving expenses for employees hired from outside Jordan.
Professional development: Sponsored training programmes, certifications, and workshops.
Holiday bonuses: Additional pay during Eid or year-end.
Education leave: Time off for government-recognised educational courses.
Pilgrimage leave: Paid leave for employees who have served at least five consecutive years.
Family leave: Extended paternity or parental leave beyond statutory minimums.
Employee investment schemes: Access to financial products or company-backed investment opportunities.

The range and value of employee benefits in Jordan often depend on company size, industry, and budget. However, offering thoughtfully designed benefits packages can significantly enhance your value proposition as an employer.

For international companies navigating the Jordanian labour market, working with an Employer of Record can help identify competitive benefits and manage them compliantly. Whether you are building a team locally or hiring remotely, a strong employee offering plays a vital role in sustainable growth.

Simplify payroll management in Jordan with CXC

Running payroll in Jordan involves more than just issuing monthly salaries. It requires strict compliance with local tax regulations, social security contributions, and statutory deadlines. On top of that, many companies also provide benefits such as health insurance, transport allowances, and annual bonuses — all of which must be reflected accurately in payroll.

In short, it is a lot of work. And getting it wrong can put your company at risk.

With CXC, you do not have to worry about compliance. We will take care of everything you need, so you can focus on what matters most: growing your business.

Compliantly hire employees anywhere with CXC

With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.

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