Employment Laws in Jordan: A Complete Guide for Employers

Jordan is an increasingly attractive market for foreign companies hiring talent across technology, finance, and professional services. But expanding your workforce into Jordan means navigating a legal framework that differs substantially from what most Western HR teams encounter.

This guide covers every major employment law requirement for foreign employers hiring in Jordan, including contract rules, leave entitlements, SSC contributions, foreign worker regulations, and the penalties for getting it wrong.

What HR compliance means in jordan

Jordan’s employment framework is administered by the Ministry of Labour. The governing statute is the Jordan Labour Law (Law No. 8 of 1996), most recently amended in 2025. Those amendments are not minor administrative updates. They extended maternity leave to 90 days and expanded dismissal protections for pregnant employees throughout the entire pregnancy. Employers who have not updated their policies since 2024 are already out of compliance.

Arabic is Jordan’s official language. Employment contracts are typically bilingual, but the Arabic version governs in any dispute. Foreign employers who rely solely on English-language templates carry real legal risk. HR compliance in Jordan is not just about getting the right numbers into payroll; it starts with legally valid documentation from day one.

Key provisions of the jordan labour law

The Labour Law (Law No. 8 of 1996 and its amendments) sets the baseline for every employment relationship in Jordan. It covers contracts, working hours, wages, leave, termination, and social insurance. No individual contract can offer less than the statutory minimums.

Recent amendments

The 2025 amendment is the most significant recent change. It extended paid maternity leave from 70 to 90 calendar days and strengthened dismissal protections so that they apply for the duration of pregnancy, not just after the employer becomes aware of it. Employers with 15 or more employees also face an obligation to provide dedicated childcare space for children under 4.5 years old.

Core employer obligations

Every employer in Jordan must:

• Issue a written employment contract before the employee starts work
• Register employees with the Social Security Corporation at the point of hire
• Pay wages monthly via bank transfer
• Withhold and remit income tax monthly
• Obtain work permits for all non-Jordanian employees
• Comply with sectoral foreign worker quota rules

Employment contract requirements

Written contracts are mandatory for all employees in Jordan. Verbal agreements do not satisfy the Labour Law requirement, and a missing or incomplete contract exposes the employer to liability in any dispute. Contracts may be fixed-term or open-ended (indefinite).

Required contract contents

Every contract must include:

• Employee name, ID number, nationality, address, date of birth, and birthplace
• Role and job title
• Working hours
• Salary stated in Jordanian dinars (JOD)
• Probation terms and duration
• Notice conditions

The salary clause deserves specific attention. The Labour Law requires that exact compensation appear in JOD. Contracts that reference salaries in USD or EUR without a stated JOD equivalent create compliance exposure and make payroll disputes harder to resolve.

Fixed-term versus open-ended contracts

Fixed-term contracts are permitted, but there is a trap employers frequently fall into. If a fixed-term contract expires and the employment continues without a formal renewal, the contract automatically converts to an open-ended agreement. At that point, full termination protections apply, including end-of-service benefits. Employers running fixed-term arrangements must track expiry dates actively and either renew formally or end the relationship cleanly on the contract date.

Probation

The maximum probation period is 3 months. During probation, either party can terminate without notice or end-of-service compensation. Once probation ends, standard termination rules apply.

Working hours, overtime, and ramadan

Jordan’s standard working week runs Sunday through Thursday, reflecting the regional calendar. Standard hours are 8 hours per day and 48 hours per week.

Overtime rates

Employers must pay a premium for any hours worked beyond the standard limit:

• Regular overtime: 125% of the normal hourly rate
• Work on a weekly rest day or public holiday: 150% of the normal hourly rate

There is no opt-out from overtime premiums. Employees cannot waive them by contract, and any clause purporting to do so is unenforceable.

Ramadan

Muslim employees are entitled to reduced working hours during Ramadan. This is not discretionary for the employer; it is a statutory entitlement. Schedules need to be adjusted for the Ramadan period each year, and overtime calculations should account for the reduced base hours.

Minimum wage

Jordan’s minimum wage is JOD 290 per month. This rate took effect on January 1, 2025, and is set through December 31, 2027. No employee may be paid below this threshold, regardless of employment type, nationality, or sector.

Foreign companies sometimes assume that a competitive market salary creates an automatic buffer above the minimum. That assumption holds until market rates fall in a particular role or the minimum is raised. Build minimum wage monitoring into your annual HR compliance review cycle.

Social security corporation (ssc) obligations

SSC registration is one of the most consequential compliance requirements for employers in Jordan. The Social Security Corporation manages retirement, disability, and other social insurance benefits. Most employees aged 16 and over must be enrolled, including many foreign nationals working in Jordan.

Contribution rates

The contribution ceiling for 2026 is JOD 3,349 per month. Contributions are calculated on monthly salary up to that ceiling. Salary above the ceiling is not subject to SSC contributions.

Registration timing

Register every new employee with the SSC at the point of hire. There is no grace period for initial registration. Late registration creates penalty exposure from the first day of employment.

2026 Amendments

Amendments that took effect in 2026 increased enforcement significantly. Penalties for non-registration or underreporting can now reach 100% of the total contributions owed. A grace period runs through the end of 2026 for employers to come into compliance with the new rules. From 2027, a new contribution formula takes effect. Employers who are not fully registered and current before that transition face compounding liability.

Leave entitlements

Jordan’s leave framework covers annual leave, sick leave, maternity and paternity leave, religious leave for Hajj, and educational leave. The 2025 maternity amendment expanded entitlements significantly; update any policies that reference the previous 70-day standard.

Annual leave notes

Unused annual leave must be paid out on termination, regardless of the reason for the employment ending. Employers cannot contract out of this obligation. If an employee resigns, is dismissed, or reaches end of contract, the leave balance becomes a cash liability.

Maternity leave (2025 amendment)

The 90-day entitlement runs from the start of maternity leave, with a minimum of 6 weeks required to be taken after the birth. Protection from dismissal now covers the entire pregnancy, not just the post-birth period. On return from maternity leave, the employee is entitled to a nursing break of 1 hour per day for 9 months.

Employers with 15 or more employees must provide a dedicated childcare space for children under 4.5 years old. This is a facility obligation, not a subsidy obligation, but it requires physical planning for offices that meet or will meet the 15-employee threshold.

Hajj leave

The 14-day Hajj leave is available once in an employee’s career after 5 years of service with the same employer. It cannot be withheld from an eligible employee.

Notice periods and termination overview

Jordan’s Labour Law distinguishes between termination with cause and termination without cause. The rules diverge significantly depending on which applies.

Notice requirements

Both the employer and the employee must give at least 30 days’ notice to end an open-ended contract. Pay in lieu of notice is permitted. For fixed-term contracts, the notice and end-of-service rules differ; the contract end date controls unless termination happens before it.

Termination with cause

Article 29 of the Labour Law sets out the grounds for summary dismissal. Where cause exists under Article 29, the employer may terminate without notice and without end-of-service benefit (EOSB). The grounds are specific; courts scrutinise cause claims carefully. Employers who attempt summary dismissal without meeting the Article 29 standard risk a wrongful termination order.

Termination without cause and EOSB

Where there is no Article 29 cause, the employer must pay end-of-service benefits:

• For employees not enrolled in SSC: 1 month’s salary per year of service
• For employees enrolled in SSC: the SSC scheme replaces the employer’s EOSB obligation for the SSC-covered portion

SSC enrollment is therefore relevant not just for compliance but for managing EOSB exposure. Employers who failed to register employees face double liability: SSC penalties plus EOSB calculated as if no SSC enrollment ever existed.

Protected dismissals

The Labour Law prohibits dismissal in the following circumstances:

• During pregnancy (at any stage, following the 2025 amendment)
• During maternity leave
• In retaliation for filing a complaint with the Ministry of Labour

Any termination that falls into these categories exposes the employer to a reinstatement or compensation order.

Final settlement

On termination for any reason, the final settlement must include all unused annual leave paid out in cash. This is mandatory and cannot be waived in the separation agreement.

Foreign worker regulations

Foreign nationals working in Jordan require a work permit. There are no exceptions for senior roles, short assignments, or remote-only arrangements. The permit must be in place before work begins.

The kafala sponsorship system

Jordan operates a kafala (sponsorship) system. The employer is the legal sponsor for each foreign worker. Sponsorship carries direct obligations: the employer must cancel the work permit immediately on termination or transfer of employment. Failure to cancel a departed employee’s permit creates ongoing legal liability for the sponsoring employer.

Foreign worker quotas

Jordan’s quota system requires companies to maintain a minimum ratio of Jordanian employees relative to foreign workers. The exact ratio varies by sector and company size. The quota applies at the entity level, meaning the Jordanian legal entity’s headcount determines how many foreign nationals can hold valid work permits at any time. HR teams planning to scale a foreign workforce in Jordan must understand the quota applicable to their sector before hiring begins.

Permit validity and renewals

The employer is responsible for ensuring that every foreign employee’s work permit remains valid throughout employment. An expired permit is an employer compliance failure, not just an employee administrative matter. Build permit renewal dates into your HR calendar with lead time to prepare documentation and submit renewal applications.

Payroll compliance

Jordan’s payroll rules are straightforward but leave no room for informal arrangements.

Wage payment

Wages must be paid monthly via bank transfer. Cash payment does not satisfy the statutory requirement. This rule applies to all employees, Jordanian and foreign alike.

Income tax withholding

Employers are responsible for withholding income tax from each employee’s salary and remitting it to the tax authority monthly. The obligation sits with the employer, not the employee. Late or incorrect remittance creates employer liability.

Ssc contributions

SSC contributions are due monthly. Both the employer and employee shares must be remitted together. The employer collects the employee’s 7.5% through payroll deduction and submits the combined total.

Record-keeping

Maintain payroll records that can demonstrate compliance with minimum wage, overtime, SSC contributions, and income tax remittance. The Ministry of Labour can inspect these records, and SSC auditors have authority to audit contribution histories.

Penalties for non-compliance

The Ministry of Labour and the SSC both have enforcement authority. Penalties have increased significantly following the 2026 SSC amendments.

The 100% SSC penalty means that an employer who failed to register 10 employees for two years effectively owes double the contributions that should have been paid over that period. At scale, that is a material financial liability. The grace period running through end of 2026 provides a window to regularise any historical gaps, but it requires action before the deadline closes.

Building a compliant HR operation in jordan

Foreign employers entering Jordan for the first time consistently underestimate the scope of the compliance work involved. Getting contracts right, registering with the SSC at the point of hire, obtaining work permits before foreign employees start, and adjusting policies for the 2025 maternity amendment are all immediate requirements. None of them can be deferred.

A few practical priorities:

Contract templates. Build bilingual templates that include every mandatory contract element. The Arabic version governs in disputes. Legal review by Jordan-qualified counsel is worth the investment before you make your first hire.

SSC registration. Treat SSC registration as a hire-day obligation, not a post-probation task. Penalties run from the first day of employment if registration is late.

Foreign worker planning. Map your Jordanian-to-foreign worker ratio against the applicable sector quota before you finalise headcount plans. Discovering a quota constraint after making job offers creates significant operational problems.

Leave liability tracking. Unused annual leave is a cash liability on termination regardless of cause. Track leave balances in real time and build accrued leave into your workforce cost models.

Policy review. If your Jordan employment policies were written before 2025, review maternity leave entitlements, dismissal protections during pregnancy, and nursing break provisions against the current law.

An Employer of Record (EOR) can absorb the bulk of this compliance work. Under an EOR arrangement, the EOR is the legal employer in Jordan. The EOR handles contract issuance, SSC registration, work permit sponsorship, payroll processing, income tax remittance, and leave management. Your team directs the work; the EOR manages the legal and administrative obligations. For companies hiring a small number of people in Jordan or testing the market before establishing a local entity, an Employer of Record is typically the faster and lower-risk path to compliant hiring.

Simplify jordan HR compliance with RemotePass

RemotePass manages employment compliance, payroll, SSC registration, and work permit sponsorship for companies hiring in Jordan. Book a RemotePass demo to see how it works.

FAQs

What is the minimum wage in Jordan?
JOD 290 per month, effective January 1, 2025, through December 31, 2027.

How long is maternity leave in Jordan?
90 calendar days, fully paid. This was extended from 70 days by the 2025 amendment. At least 6 weeks must be taken after the birth.

Are employers required to register employees with the SSC from day one?
Yes. Registration is required at the point of hire. Late registration triggers penalties that can reach 100% of the contributions owed for the unregistered period.

Can a foreign national work in Jordan without a work permit?
No. All non-Jordanian employees require a valid work permit before starting work. The employer is the sponsor under Jordan’s kafala system and is responsible for permit validity throughout employment.

What happens if a fixed-term contract expires and the employee keeps working?
The contract automatically converts to an open-ended (indefinite) agreement. Full termination protections, including notice and end-of-service benefit obligations, then apply.

Does an employer have to pay out unused annual leave on termination?
Yes, regardless of the reason for termination. Unused leave is converted to cash and included in the final settlement.

What are the SSC contribution rates?
Employers contribute 14.25% (plus 1% for high-risk roles). Employees contribute 7.5%. Contributions are capped at a monthly salary of JOD 3,349 (2026 ceiling).

Is probation allowed under Jordanian law?
Yes. Probation may not exceed 3 months. Either party may terminate without notice or compensation during this period.

What is the overtime rate for working on a public holiday?
150% of the normal hourly rate. Regular overtime on a normal working day is paid at 125%.

Can an employer dismiss a pregnant employee?
No. The 2025 amendment prohibits dismissal throughout the entire pregnancy. Dismissal during pregnancy or maternity leave is unlawful and can result in a reinstatement or compensation order.