Key Takeaways for Hiring in Jordan
- Jordan’s labor laws offer a structured but flexible framework for foreign and local employers.
- Expect monthly payroll cycles, mandatory health and social security contributions, and 14-21 days of paid annual leave depending on tenure.
- Contracts must include key personal and role details, and work visas are managed under a sponsorship system.
Continent
Asia
Capital
Amman
Currency
Jordanian Dinar (JOD)
Language
Arabic
Payroll Cycle
Monthly
VAT
16%
Quick Facts For Hiring In Jordan
Jordan Employment Contract Overview
What Do You Need To Include In A Jordanian Employment Contract?
To stay compliant with Jordanian labor law, you must include the following key details in every employment contract:
Employee Information
- Full name
- ID number
- Role / Job title
- Nationality
- Address
- Date of birth
- Place of birth
- Annual leave
- Start date
- End date (if applicable)
- Contract duration
- Contract term
- Working hours
- Probation and notice conditions
- Termination provisions
- Compensation details
Hiring contractors? Learn how to avoid misclassification risks in Jordan.
Payroll
Average employer cost
14.25%
| Category | Details |
|---|---|
| 13th Salary | Not mandatory; subject to employer |
| Avg employer tax | 14.25% |
Tax Breakdown
Personal Income Tax (PIT)
| Category | Rate / Details |
|---|---|
| Up to JOD 5,000 | 5% |
| JOD 5,001 – 10,000 | 10% |
| JOD 10,001 – 15,000 | 15% |
| JOD 15,001 – 20,000 | 20% |
| JOD 20,001 – 1,000,000 | 25% |
| Above JOD 1,000,000 | 30% |
| National Contribution Tax | An additional 1% on annual income exceeding JOD 200,000 |
Corporate Income Tax (CIT)
| Category | Rate / Details |
|---|---|
| Standard Rate | 20% |
| Reduced Rate | 14% for certain sectors, such as agriculture and tourism |
Social Security Contributions
| Category | Rate / Details |
|---|---|
| Employer Contributions | 14.25% |
Employee Contributions – 7.5%
| Category | Rate / Details |
|---|---|
| Old Age, Disability, and Death Insurance | 6.5% |
| Unemployment Insurance | 1% |
VAT
| Category | Rate / Details |
|---|---|
| VAT | 16% |
Onboarding Process
Onboarding in Jordan typically includes the following steps to ensure a smooth transition for new hires:
- Employment Contract — Must be in writing and include job title, duties, salary, working hours, leave entitlements, and termination conditions
- Registration with Authorities — Register the employee with the Ministry of Labor and the Social Security Corporation
- Payroll Setup — Ensure accurate calculation and withholding of taxes and social security contributions
- Employee Documentation — Collect personal identification, bank account details, and tax information
- Workplace Policies — Provide access to company policies, health and safety guidelines, and any applicable collective agreements
- Pre-boarding — Pre-boarding Pre-boarding
Leave And Holiday Entitlement In Jordan
Annual Leave
Employees in Jordan earn 14 working days of paid annual leave each year during their first five years of service, increasing to 21 days after that. You must either let employees carry forward or pay out unused leave; it can’t be waived by agreement.
Public Holidays
Jordan celebrates eight to ten public holidays each year, with some Christian holidays observed only in certain public-sector organizations. These include:
-
New Year’s Day (Jan 1)
-
Labour Day (May 1)
-
Independence Day (May 25)
-
Eid al‑Fitr
-
Eid al‑Adha
-
Islamic New Year
-
Prophet’s Birthday
-
Christmas Day
-
Christian holidays like Easter Sunday/Monday are also observed.
Sick Leave
- Employees in Jordan can take up to 14 days of paid sick leave each year when they provide a certified doctor’s report.
- In cases of extended hospitalization, an additional 14 days at full pay is provided.
- Non-hospitalized employees with a certified medical commission report take up to seven additional sick days at half pay.
Maternity Leave
- Employees in Jordan are entitled to 10 weeks of paid maternity leave; four weeks before birth and six weeks after.
- Social Security pays maternity leave at full wages when the employee has contributed for at least six months. Mothers can also take up to one hour of unpaid nursing break each day during the first year after delivery.
Paternity Leave
Three paid days after birth.
Other Types of Leave
Pilgrimage Leave (Hajj/Umrah): Employees with at least five consecutive years of service with the same employer are entitled to once-only paid leave of up to 14 calendar days to perform Hajj or Umrah. This paid leave is granted only once during employment
Education/Training Leave (“Labour Education”): Employees may receive up to 14 paid days per year to attend a Ministry-approved labour education course when nominated by their employer in coordination with the trade union. Additionally, an employee enrolled at an officially recognized college, institute, or university may take up to four months’ unpaid leave per year for study purposes.
Spousal Relocation Leave (“Accompany Spouse”): Each spouse is entitled to take up to two years’ unpaid leave once to accompany their partner if the spouse relocates to a different governorate in Jordan or abroad for work.
Bereavement Leave: Discretionary
Termination And Offboarding in Jordan
In Jordan, you’ll need to follow specific rules offboarding, including set notice periods and severance requirements .Here’s how to handle terminations smoothly and avoid any legal oversights:
| Type | Possible? |
|---|---|
| Termination for cause (poor performance, misconduct, etc.) | Yes |
| Termination without cause | Yes |
| Mutual Termination Agreement (MTA) | Yes |
| Redundancy | Not possible under the EOR setup |
Jordan Employee Resignation
Form
Written.
Notice Period
For indefinite-term contracts, employees must give at least one month’s written notice when terminating the contract.
Payment in lieu of notice or notice waiver
If the employer waives the notice period, they’re still required to pay the employee their full salary for that duration. If the employee resigns and leaves before the notice period ends, they forfeit salary for the period not worked, and may owe compensation to the employee.
End-of-Service Benefits
Severance/Gratuity
- Employees who don’t fall under the Social Security system are entitled to severance pay (“end-of-service gratuity”) of one month’s salary for each year of service, plus pro-rata for partial years.
- This benefit is due in cases of termination by the employer (unless for gross misconduct) and may also apply in specific resignation scenarios, such as if the employer unilaterally changes contract terms or forces resignation.
Other Benefits
- Unused annual leave must be paid in cash at the rate in effect at termination, regardless of contract type or reason for termination.
- Additional benefits such as return airfare for expatriates, allowances, or accrued sick leave, must be provided if specified in the contract or mandated by law (e.g., social security or maternity leave benefits)
Termination Documentation
- Upon ending service, the employer must provide a service certificate that includes the employee’s name, job title, date of joining, date of leaving, and return any original documents submitted by the employee.
- Employers must maintain written notice records, details of final settlement, and justification if termination was for a cause (e.g., misconduct).
Visa and Immigration Compliance
- In Jordan, especially under the kafala system, the employer sponsors the employee’s work/residence permit. Termination or resignation necessitates cancellation or transfer of the visa to maintain legal status.
- Employers must comply with immigration regulations and initiate visa cancellation immediately after an employee’s termination or final working day. Failure to do so can result in legal issues for both parties.
Employer Termination With Cause in Jordan
Acceptable grounds
Under Jordan Labour Law No. 8 of 1996, termination with cause (“extraordinary termination” or “termination without notice”) is permitted in specific scenarios where the employee commits serious violations. Acceptable grounds include:
- Assuming a false identity or submitting forged documents/certificates
- Inability to fulfill contractual duties or repeated failure to perform tasks
- Causing material damage to the employer, provided the employer notifies authorities within five days of discovery
- Repeated violations of internal policies or safety regulations, especially after written warnings
- Disclosure of business secrets
- Absence without legitimate reason for more than 20 intermittent days or 10 consecutive days within a year
- Conviction by final judgment for crimes involving moral turpitude or public indecency
- Physical assault of the employer, manager, or colleagues during or because of work
- Being under the influence of alcohol or drugs at work
Notice
Written notice is required for ordinary termination (without cause) under indefinite-term contracts. In cases of actual misconduct, no notice is required.
End-of-Service Benefits
Severance
Not owed if the termination is for cause (e.g., serious misconduct).
Other Benefits
- Employees must receive payment for unused annual leave on termination, regardless of cause.
- Any contractual benefits (e.g., end-of-service ticket, allowances) must be honored if stipulated in the contract.
Termination Documentation
Employers should maintain a written notice, documentation of the cause, and details of all final payments.
Visa and Immigration Compliance
- Upon termination, including termination with cause, the employer must cancel or transfer the employee’s work/residence visa, per Jordan’s sponsorship (kafala) system.
- This must be addressed promptly post-termination to ensure legal immigration status and avoid penalties.
Employer Termination Without Cause in Jordan
Acceptance Grounds
You can lawfully end employment for reasons such as:
- Redundancy
- Restructuring
- Economic or operational changes
- Simply deciding to end the employment relationship
These do not fall under the serious misconduct grounds that warrant summary dismissal.
Notice
Form
Written.
Notice period
Minimum one month’s written notice.
Payment in lieu of notice or notice waiver
If the employer waives the notice period, they must pay the employee the full salary for that period.
End-of-Service Benefits
Severance/Gratuity
Employees not covered by social security are entitled to end-of-service compensation:
- One month’s salary per year of service, including pro-rata for partial years.
Other Benefits
- Payment for unused annual leave is mandatory, regardless of reason for termination.
- Other contractual entitlements, like return airfare or allowances, must be honored if specified.
Termination Documentation
- A written notice with an effective date of termination is required.
- Documentation of final settlement (salary, leave payout, severance, etc.).
- A service certificate must be issued, indicating job title, dates of service, and other formalities; any original documents submitted by the employee must be returned.
Visa and Immigration Compliance
Employers sponsoring expats must promptly cancel or transfer the employee’s work or residence visa after termination. Failing to do so can result in legal penalties.
Mutual Termination Agreements (MTAs) in Jordan
MTA is a voluntary agreement signed by both parties (employer and employee) to terminate an employment contract by mutual consent.
Notice
Notice period
Employers and employees can agree on notice terms, but Jordan’s labor law sets minimum periods, for example, one month for indefinite-term contracts. Both parties can also agree to shorten or waive the notice period altogether.
Waiver of notice
If both parties agree, notice can be waived in full or in part, provided the agreement is clearly documented and the employee is compensated appropriately or has agreed otherwise.
End-of-Service Benefits
Severance/Gratuity
- In cases of mutual termination, employees are generally entitled to statutory end-of-service benefits, usually one month of salary for each year of service and prorated for partial years, unless they choose to waive these benefits in writing.
- If the employee is covered by social security schemes, the legal entitlement to severance may differ or not apply.
Other Benefits
Other accrued entitlements such as unused annual leave, contractual benefits, or return airfare (for expat employees), should be included in the mutual agreement.
Termination Documentation
A mutual termination must be formalized through the following steps:
- A written mutual termination agreement stating termination date, notice arrangements, and benefits settlement.
- A service certificate summarizing the employee’s name, job title, dates of service, especially if requested by the employee for future employment documentation.
Visa and Immigration Compliance
For expats under Jordan’s sponsorship (kafala) system, the employer must arrange the cancellation or transfer of the work/residence permit promptly after effective termination. This is crucial to maintain legal immigration status and avoid violations.
Offboarding Process for the End of Fixed-term Contracts in Jordan
If the Fixed-Term Contract Ends Normally
Notice
Fixed-term contracts in Jordan end automatically on the agreed date, so you don’t need to issue a notice when the term expires.
End-of-Service Benefits
Severance/Gratuity
This is not applicable. When a fixed‑term contract ends normally (i.e., by expiration), there’s no statutory severance pay.
Other Benefits
- Any unused annual leave must be paid out in cash at the time of contract termination.
- Any contractual entitlements such as return tickets or other specified benefits must also be honored.
- Employers must provide a certificate of service/experience indicating the employee’s name, job title, start date, and end date.
If The Employer Terminates Early
Notice
There’s no automatic notice entitlement when a fixed-term contract ends normally.
End-of-Service Benefits
Severance/Gratuity
If you terminate the fixed-term contract early without just cause, the employee is entitled to:
- The full contractual dues for the remainder of the term, as set out in the contract and applicable law.
- End-of-service compensation equivalent to one month’s salary per year of service unless they are covered by Social Security.
Other Benefits
- Unused annual leave must be paid out.
- Any other contractual benefits such as return air tickets, allowances, etc., must also be paid as per agreement.
Final Payment Timing and Compliance
The employer must settle all outstanding payments (including wages and overtime) within seven days of the worker’s last day of service.
Supporting Guides
Frequently Asked Questions
What labor laws apply to employment in Jordan?
Jordan’s labor system is governed by Labor Law No. 8 of 1996, covering employment contracts, working hours, minimum wage, leave entitlements, termination procedures, and employee protections. Employers must also comply with Social Security Law and income tax regulations from the Jordan Income and Sales Tax Department.
What’s the minimum wage in Jordan?
As of 2025, the national minimum wage is JOD 260/month for most employees. Domestic workers do not have a fixed statutory wage but are protected from discrimination and exploitation.
Are written employment contracts mandatory in Jordan?
Yes. Employment contracts must be written and must include key clauses like employee name, job title, contract type, working hours, compensation, notice periods, leave entitlements, and more. Contracts must be in English, but Arabic is widely understood and used.
What are the standard working hours and days in Jordan?
Employees typically work 48 hours per week, with Sunday to Thursday as the standard workweek. The maximum is 8 hours per day, though variations may apply based on the industry or internal policies.
What taxes and contributions do employers pay in Jordan?
Employers must contribute 14.25% of gross salary to the Social Security Corporation (SSC), covering pension, maternity, unemployment, and work injury. High-risk jobs may incur an extra 1%.
What payroll deductions are employees subject to?
Employees contribute 7.5% of gross salary to Social Security, broken down into 6.5% pension and 1% unemployment. Income tax is deducted at source using progressive tax brackets ranging from 5% to 30%.
Is health insurance mandatory for employees?
Yes. Health coverage is mandatory via the Social Security Corporation. Private insurance is optional but commonly offered as an added benefit to attract and retain talent.
What is the maternity and paternity leave policy in Jordan?
Maternity leave: 10 weeks total (Fourweeks pre-birth,Sixpost-birth), paid via SSC if contributions were made for 6+ months. Nursing breaks (1 hour daily) are also provided in the first year. Paternity leave: Three paid days after the birth of a child.
How is unused leave handled at the end of employment?
Unused annual leave must be paid out in cash based on the current wage at termination. This applies regardless of contract type or reason for leaving, as per Jordanian labor law.
What are the rules around termination in Jordan?
Termination can be:
End-of-service gratuity is one month’s salary per year of service for those not covered by social security, plus payouts for unused leave and any contractual benefits.
How are work visas handled for foreign employees?
Employers must sponsor work and residence visas under Jordan’s kafala (sponsorship) system. Upon resignation or termination, the employer must cancel or transfer the visa to avoid legal complications for the employee.
Can employees take Hajj or educational leave in Jordan?
Yes
