1. Social Security Contributions: Pension and Insurance

Overview: Jordan has a social security system that provides pension, insurance for disability, and survivor benefits. Both employers and employees are required to contribute to this system, which ensures financial security for employees.

Details:
Employees in Jordan contribute to the social security system, which provides benefits in case of old age, disability, or death. The employer contributes a larger portion to the system. In addition, employees may also benefit from private health insurance, depending on the employer.

Outcome:
These contributions secure employees’ financial future, providing them with essential support in the event of illness, disability, or retirement, in alignment with Jordan’s social welfare policies.

2. Paid Annual Leave

Overview:
Employees in Jordan are entitled to paid annual leave, ensuring work-life balance and supporting their overall well-being.

Details:

• Employees are entitled to 14 days of paid annual leave after completing one year of service.
• After five years of service, the entitlement increases to 21 days of paid annual leave.
• Employers may offer additional leave beyond the statutory minimum.

Outcome:
Paid annual leave helps employees to take necessary breaks, contributing to long-term productivity and job satisfaction.

3. Maternity and Paternity Leave

Overview:
Jordan provides paid maternity leave for female employees and paternity leave for male employees to support family welfare.

Details:

• Maternity leave in Jordan is 70 days, with full pay.
• Paternity leave for male employees is 3 days, also with full pay.

Outcome:
These leave benefits support family well-being, ensuring a balanced work environment and the health of new mothers and fathers.

4. Sick Leave

Overview:
Sick leave in Jordan allows employees to recover from illness without financial hardship.

Details:

• Employees are entitled to paid sick leave for up to 14 days per year.
• Sick leave pay is typically 100% for the first 3 days, 75% for the following 7 days, and 50% for any additional days within the same year.

Outcome:
Sick leave ensures that employees can recover without suffering financially, supporting a healthy and motivated workforce.

5. End of Service Benefits (Severance Pay)

Overview:
Jordan mandates end-of-service benefits for employees who have completed at least one year of continuous service.

Details:

• Employees are entitled to severance pay based on the length of their service.
• The severance pay is calculated as 1 month’s salary for every year of service, with a maximum of 12 months’ pay.

Outcome:
Severance pay offers financial security to employees upon termination, helping to promote fairness and transparency in employment relationships.

6. Public Holidays

Overview:
Jordan observes several national public holidays that employees are entitled to enjoy with paid time off.

Details:
Employees are entitled to paid leave on public holidays. If they are required to work during these holidays, they are entitled to overtime compensation.

Outcome:
Public holidays give employees the opportunity to rest, celebrate, and participate in cultural and national traditions.

7. Health Insurance

Overview:
Health insurance is mandatory for employees in Jordan, and employers are required to provide it.

Details:

• Employers must provide health insurance coverage to all employees, including expatriates.
• The level of coverage may vary, but employers are responsible for paying the health insurance premiums.

Outcome:
Mandatory health insurance ensures employees have access to necessary medical care, helping to maintain a healthy and productive workforce.

8. Additional (Extra-Legal) Benefits

Overview:
In addition to the mandatory benefits required by Jordanian labor laws, many employers offer extra benefits to attract and retain talent.

Details:

• Housing Allowance: Many employers provide accommodation or a housing allowance, especially for expatriates.
• Transportation Allowance: Some employers offer subsidies for commuting expenses.
• Performance Bonuses: Companies may offer performance-based bonuses, either individual or company-wide.

Outcome:
Extra benefits enhance employee satisfaction, improve retention, and foster loyalty, contributing to a positive work environment.

Streamlining Compliance with EOR/PEO Services

Partnering with an Employer of Record (EOR) or Professional Employer Organization (PEO) like GlobainePEO can help simplify the management of employee benefits in Jordan. An EOR/PEO ensures compliance with local laws, handles payroll, and manages mandatory benefits, helping businesses operate efficiently while minimizing legal risks.

Final Thoughts

Complying with mandatory employee benefits in Jordan is vital for creating a positive and compliant work environment. By understanding and adhering to these requirements, businesses can improve employee morale, reduce legal risks, and ensure smooth operations. Partnering with a trusted EOR/PEO like GlobainePEO ensures full compliance while allowing businesses to focus on growth and expansion in Jordan’s market.