Employment Law

Employment Contract in Jordan

Employers in Jordan can hire via a verbal or written employment contract, but we strongly recommend that a formal written contract is always provided. These contracts should cover all details of employment such as compensation, working hours, responsibilities, etc. The contract should be written in Arabic and indicate the local currency, the Jordanian dinar.

Fixed Term

Indefinite

Working Hours in Jordan

The typical working week limit in Jordan is 6 days and 48 hours. Any work outside this range shall be paid overtime at 1.25 to 1.5 times regular wages.

Holiday Policy

Jordan Vacation

Employees in Jordan are entitled to 14 days of vacation per year. After five years of service with the employer, this allowance increases to 21 days.

Jordan Sick Leave

Under standard circumstances, employees in Jordan are entitled to up to 14 days of paid sick leave per year. This period can be extended by a further 14 days if they require hospitalization.

Parental Leave in Jordan

Female employees in Jordan are entitled to 10 weeks of paid maternity leave.

Dismissal and Severance in Jordan

In Jordan, the notice period before termination is usually one month.

Taxes in Jordan

Income tax for employees in Jordan is progressive, with rates ranging from 5% to 30% depending on income level. Anyone whose annual income exceeds 200,000 dinars must pay an additional 1% state tax.

Jordan's corporate tax rate is 20% for most companies, but there are different rates for certain types of businesses, such as banks.

Health Insurance in Jordan

Jordan's healthcare system is state-funded, so employers are not required to offer private health insurance as a benefit.

Salary and Benefits

Compensation Law in Jordan

The minimum wage for employees in Jordan is 190 dinars per month (as of 2020).

Welfare Management in Jordan

Setting up a benefits system for your employees in Jordan can be difficult to navigate, especially if you are unfamiliar with the country and its laws. If you want to handle the setup independently, it may take several weeks and may cause delays in the expansion process.

At Remoly, we specialize in building and running Jordanian employee benefits systems. We'll use our experience to handle everything, ensuring you're ready to launch your business in Jordan quickly and efficiently.