Jordan’s kafala (sponsorship) system places the legal responsibility for a foreign employee’s work and residency status squarely on the employer. Before you hire a non-Jordanian national, you need to understand what that sponsorship creates and what it requires you to manage throughout the employment lifecycle. This guide covers every stage: quota compliance, permit applications, Social Security contributions, and what happens when employment ends.
How jordan’s kafala system works
Kafala is not just a bureaucratic label. It is a legal relationship that makes the employer the sponsor of record for every foreign worker they hire.
What sponsorship means in practice
When you sponsor a foreign employee in Jordan, you are legally responsible for their work permit and residence permit. That responsibility begins before their first day of work and does not end until the permits are properly cancelled or transferred. If employment ends for any reason, whether you initiated the termination or the employee resigned, you must act immediately to cancel or transfer both permits. Delays create legal exposure for your company.
Obligations that come with sponsorship
Sponsorship is not passive. As the legal sponsor, you are required to keep permits current, ensure the employee is working only within the scope of the permit, register them with social security at the point of hire, and manage the full departure process if employment ends. Foreign workers cannot transfer their own permits or arrange their own cancellation independently of the sponsoring employer.
The foreign worker quota system
Jordan requires companies to maintain a minimum ratio of Jordanian employees on their workforce. The exact quota varies by sector and by company size, and some roles or industries carry different requirements or exemptions.
How quotas affect your hiring decision
You cannot sponsor a new foreign hire unless your current workforce meets the applicable Jordanian worker quota. Check your compliance position before you begin recruitment. If you are below the required percentage, hiring a foreign national is not permitted until you bring the ratio back into compliance. Certain specialised roles or sectors may qualify for modified requirements, but you need to confirm this with the Ministry of Labour before assuming an exemption applies.
Why this matters operationally
Quota compliance is not a one-time check. As your headcount changes through hires, resignations, and terminations, your Jordanian-to-foreign ratio shifts. Build a tracking process that flags quota position as part of every hiring decision, not just when you are recruiting foreign nationals.
Work permit vs residence permit
Foreign employees in Jordan need two separate documents from two separate government bodies. They are linked, but they are not the same, and you manage both as the sponsoring employer.
The work permit
The work permit is issued by the Ministry of Labour and allows the foreign national to work legally in Jordan. You, as the employer, apply for it. The permit is valid for one year and is renewable. It is tied to your company: if the employee moves to another employer, the permit must be cancelled and reissued under the new sponsor. Working without a valid permit is a violation for both the employer and the employee.
The residence permit
The residence permit is separate from the work permit and is issued by the Civil Status and Passports Department. It is also tied to employment, and you as the employer initiate the process. Renewal must align with the work permit. If the work permit lapses, the residence permit cannot stand on its own. Both documents need to be kept current, and both need to be cancelled or transferred when employment ends.
How the two permits interact
Think of the work permit as the foundation and the residence permit as the structure built on top of it. You cannot have a valid residence permit without a valid work permit. When you renew, renew both in sequence. When you cancel, cancel both.
What you’re responsible for as the sponsoring employer
The table below summarises your core obligations across the employment lifecycle.
| Stage | Employer obligation |
|---|---|
| Before hiring | Verify quota compliance; confirm the role is eligible for a foreign hire |
| Point of hire | Apply for work permit with Ministry of Labour |
| Point of hire | Initiate residence permit with Civil Status and Passports Department |
| Point of hire | Register employee with Social Security Corporation |
| During employment | Maintain and renew both permits; keep SSC contributions current |
| Contract | Provide written, bilingual (Arabic and English) employment contract with salary in JOD |
| Termination | Cancel work permit and residence permit immediately |
| Termination | Pay final settlement including outstanding salary, unused leave, and any applicable gratuity |
| Post-termination | Confirm orderly departure if the termination was employer-initiated |
The work permit process step by step
The process runs through the Ministry of Labour and follows a defined sequence. The exact documentation requirements can vary based on nationality, sector, and role level, so confirm current requirements with the Ministry before you begin.
Step 1: confirm quota eligibility
Before anything else, confirm that your current workforce composition allows you to sponsor a foreign hire. If the quota is not met, resolve it first.
Step 2: gather the required documentation
You will typically need the employee’s passport, a signed employment contract, company registration documents, and supporting materials related to the specific role. The Ministry may require additional documents depending on the sector.
Step 3: submit the work permit application
Submit the application to the Ministry of Labour. You are applying as the employer and sponsor. Processing times vary; plan your start date accordingly and do not allow the employee to begin work before the permit is issued.
Step 4: initiate the residence permit
Once the work permit is approved, initiate the residence permit application with the Civil Status and Passports Department. The employee will need to be present for parts of this process.
Step 5: register with the social security corporation
Register the employee with the SSC at the point of hire. This is a legal requirement for all employees, including foreign nationals, and must happen from day one of employment.
Step 6: track renewal dates
Both permits are valid for one year. Build renewal into your HR calendar well before expiry. A lapsed permit puts you and the employee in violation.
Ssc obligations for foreign employees
Most foreign nationals working in Jordan are subject to Social Security Corporation contributions from the start of employment. The rates as of 2026 are:
- Employer contribution: 14.25% of gross salary
- Employee contribution: 7.5% of gross salary
- Monthly SSC ceiling: JOD 3,349
Contributions apply up to the ceiling only. Earnings above JOD 3,349 per month are not subject to SSC. Some foreign nationals may have modified obligations or exemptions under bilateral agreements between Jordan and their home country. Review this on a case-by-case basis when onboarding nationals from countries that Jordan has a social security agreement with.
Cancelling permits on termination
The kafala system does not allow a permit to simply expire or lapse when employment ends. You have an active obligation to act.
When termination is employer-initiated
Cancel the work permit and residence permit immediately. Calculate and pay the final settlement, covering any outstanding salary, accrued and unused annual leave, and any gratuity the employee is entitled to under their contract or Jordanian labour law. Where the employee needs to depart Jordan, manage that process in an orderly way. Your kafala obligations end only once the permits are properly cancelled or transferred to a new sponsor.
When the employee resigns
The same cancellation requirement applies. The employee cannot handle this independently. You must initiate the cancellation process regardless of whether the separation was your decision or theirs.
Probation and notice periods
The employment contract may include a probation period of up to three months. Notice periods are a minimum of 30 days. Even within probation, permit obligations still apply.
Hiring foreign workers without a jordan entity
Foreign companies that do not have a registered legal entity in Jordan face a practical barrier: they cannot directly sponsor work permits. Under the kafala system, the sponsor must be a registered employer in Jordan.
Why entity setup is not always the right answer
Establishing a Jordan entity takes time and capital, and it brings ongoing compliance obligations in payroll, tax, and corporate law. For companies hiring one or a small number of foreign workers in Jordan, the overhead often outweighs the benefit, particularly in the early stages of market entry.
The EOR route
The practical alternative is to use an Employer of Record (EOR). The EOR holds the registered Jordan entity, acts as the legal employer and sponsor, applies for and maintains the work permit and residence permit, registers the employee with the SSC, and manages all in-country compliance. You retain day-to-day management of the employee and define the scope of their work. The EOR handles the legal and administrative layer.
This structure lets you hire foreign workers in Jordan and meet kafala obligations without setting up your own entity. As your operations grow, you can reassess whether incorporating makes sense. An Employer of Record can also serve as a bridge if you plan to establish an entity later, covering the period before your registration is complete.
Simplify jordan work permit sponsorship with RemotePass
RemotePass operates as an EOR services provider across the Middle East, including Jordan, managing work permit sponsorship, SSC registration, bilingual contracts, and permit cancellations on your behalf. If you are hiring foreign workers in Jordan without a local entity, or you want to reduce the administrative load of managing kafala compliance directly, RemotePass handles the legal employer layer end to end. Book a RemotePass demo to see how it works.
FAQs
Can a foreign employee in Jordan switch employers?
Yes, but the work permit and residence permit are tied to the sponsoring employer. The current employer must cancel the permits, and the new employer must apply for fresh permits. The employee cannot transfer the permits independently.
What happens if we let a work permit lapse?
A lapsed work permit means the employee is working without a valid permit. This is a violation for both the employer and the employee and can result in fines and other penalties. Renew well before expiry.
Do all foreign employees in Jordan need an SSC registration?
Most do. Registration with the Social Security Corporation is required at the point of hire for all employees, including foreign nationals. Some nationalities may have modified obligations under bilateral agreements, but the default is full SSC registration and contributions.
What is the minimum notice period when terminating a foreign employee?
The minimum notice period is 30 days. Final settlement covering outstanding salary, unused annual leave, and any applicable gratuity must be paid on termination. Permit cancellation must also happen immediately.
Can we hire a foreign worker in Jordan without setting up a Jordan company?
Not directly. The kafala system requires the sponsor to be a registered employer in Jordan. Foreign companies without a local entity typically use an Employer of Record, which holds the Jordan registration and acts as the legal sponsor and employer.
What does the Jordanian worker quota mean for our hiring plans?
You must maintain a minimum percentage of Jordanian employees relative to your total headcount. The exact percentage depends on your sector and company size. You cannot sponsor a new foreign hire unless your workforce meets the applicable quota. Check your position before starting any foreign recruitment process.
Does the kafala obligation end when an employee resigns?
No. Whether the employment ends by resignation or termination, you are still required to cancel or transfer the work permit and residence permit. The kafala obligation ends only once that process is completed.
