Employee Benefits in Jordan

Who Is Entitled to Employee Benefits In Jordan

In Jordan, employees working under an employment contract, whether written or verbal, are generally entitled to statutory benefits under the Labour Law and the Social Security Law. This includes full-time and part-time employees, provided they are on your payroll and meet any minimum hours or contribution thresholds set by the Social Security Corporation.

Contractors and freelancers engaged on a genuine service agreement are not covered by most employee benefits rules, though misclassification risks exist if they work like employees. Eligibility for certain benefits, such as annual leave or end-of-service entitlements, may begin after a probationary period, but employees accrue rights based on length of continuous service. Social security coverage typically starts from the date of registration with the Social Security Corporation once minimum wage and working-hour conditions are met.

Overview of Employee Benefits In Jordan

Employee benefits in Jordan are relatively structured compared with many markets in the region, with clear statutory rules for social security, working hours, and leave. Benefits play a significant role in local workplace culture, where stability, family support, and health coverage are highly valued by employees.

Mandatory Employee Benefits In Jordan

Mandatory benefits are legally required and form the core of any employee benefits package in Jordan. Here's a comprehensive list of mandatory benefits in Jordan:

Social Security Contributions

Jordan’s Social Security Law requires employers to register eligible employees with the Social Security Corporation and make monthly contributions. The scheme generally covers old age, disability, and death, as well as work injury insurance, unemployment insurance, and maternity benefits. Both employer and employee contribute a percentage of the employee’s gross wage, with the employer share being higher.

Contributions are calculated on the employee’s insurable wage, subject to minimum and maximum thresholds set by the Social Security Corporation. Your company must maintain accurate payroll records, contribution statements, and proof of payment. Compliance with social security obligations is central to employee financial security in retirement, during periods of disability, or in case of workplace injuries.

Paid Annual Leave

Employees in Jordan are entitled to paid annual leave after completing a period of continuous service with your company. The Labour Law typically provides at least 14 days of paid annual leave per year, increasing to 21 days after longer service, though exact entitlements can depend on years of service and the applicable provisions of the law or collective agreements.

Annual leave is calculated based on the employee’s regular wage. You should maintain leave records documenting accruals, approvals, and balances. Providing and encouraging the use of annual leave helps protect employee wellbeing, prevent burnout, and maintain productivity over the long term.

Paid Public Holidays and Weekly Rest Day

Jordan recognizes a set of official public holidays, including religious and national holidays, during which employees are generally entitled to paid time off. In addition, employees are entitled to at least one paid weekly rest day, most commonly Friday, as set out in the Labour Law.

If employees are required to work on an official public holiday or their weekly rest day, they are typically entitled to premium pay in line with the Labour Law. You should keep clear schedules and payroll records demonstrating when employees worked on holidays and how compensation was calculated. Respecting rest days and holidays supports work–life balance and is culturally important in Jordan.

Paid Sick Leave

Employees are entitled to paid sick leave in Jordan, subject to medical certification. The Labour Law provides for a certain number of days of fully paid sick leave per year, and in some cases partially paid additional leave, where illness is certified by an approved physician.

Your company may require employees to submit medical certificates to validate absence, especially for longer periods. Sick leave pay is typically based on the employee’s regular wage. Providing guaranteed sick leave protects public health, helps employees recover properly, and reduces presenteeism and long-term illness risks.

Maternity Leave and Maternity Protections

Female employees in Jordan are entitled to paid maternity leave under the Labour Law. The minimum maternity leave period is typically 10 weeks, usually taken as a combination of pre- and post-natal leave, with pay at the employee’s full wage. Some aspects of maternity benefits may also be supported through the social security system where contributions have been made.

Employers must also comply with protections against dismissal due to pregnancy or maternity and may be required to provide nursing breaks after return to work. Documentation usually includes medical certificates confirming pregnancy and expected due date. Maternity protections support family life and help increase female participation and retention in the workforce.

End-of-Service Entitlements for Non–Social Security Employees

Where employees are not covered by the social security old-age system, Jordanian law generally provides for end-of-service entitlements. These are based on the employee’s length of service and final wage, with formulas specified in the Labour Law.

Your company should track start dates, breaks in service, and salary history to correctly calculate any end-of-service amounts. While many employees are now covered by social security, understanding your obligations for any excluded categories is essential to avoiding disputes and ensuring fair treatment at the end of employment.

Occupational Health and Safety

Jordanian law requires employers to provide a safe and healthy work environment, including appropriate safety equipment, training, and preventive measures tailored to the nature of the workplace. For higher-risk industries, additional regulations may apply concerning protective gear, safety protocols, and reporting of accidents.

Compliance requires documented risk assessments, safety training records, and incident logs. While not a “benefit” in the traditional sense, strong occupational health and safety standards are a mandatory protection, reducing work-related injuries and demonstrating your company’s duty of care.

Working Hours, Overtime Pay, and Rest Breaks

Standard working hours and overtime rules are regulated by the Labour Law. Employees are generally entitled to limits on daily and weekly working hours, premium pay for overtime, and rest breaks during the workday. These provisions function as a core employment protection that shapes employees’ work–life balance.

Your company must track working hours, document overtime requests or approvals, and calculate overtime pay at the legally mandated premium rates. Respecting legal limits on working time reduces fatigue, supports productivity, and helps prevent legal disputes over unpaid overtime.

Supplemental Employee Benefits In Jordan

Supplemental benefits are not required by law, but can help you stand out as an employer and attract top talent. They include:

Private Health Insurance

Many employers in Jordan offer private health insurance to complement the public and social security systems. Coverage typically includes outpatient and inpatient care, diagnostics, and sometimes dental or optical benefits. Employers may cover employees only, or extend coverage to spouses and children.

Companies offer this benefit to make roles more attractive and reduce financial stress from medical costs. Implementation usually involves partnering with a local insurer and paying a monthly premium per covered individual. Private health insurance is highly valued by employees and is often seen as a marker of a “good” employer in Jordan.

Performance and Incentive Bonuses

Performance-based bonuses, sales commissions, and annual incentives are widely used supplemental benefits. These payments are tied to individual, team, or company performance, and can be structured as quarterly or annual bonuses, or variable pay components.

Employers use bonuses to reward high performance, align employees with company goals, and stay competitive in the local labor market. Clear policies and performance targets are essential to maintain transparency and manage expectations, especially where bonuses form a significant share of total compensation.

Meal, Transportation, and Housing Allowances

It is common for employers in Jordan to provide allowances that help employees manage daily living costs. These allowances can cover meals during the workday, commuting expenses, or, more rarely, housing support, especially for employees relocating from other regions or countries.

Allowances are often paid as a fixed monthly amount or as a reimbursable expense based on receipts. They help improve net take-home value without necessarily increasing base salary and can be tailored to your company’s budget and workforce needs.

Supplemental Retirement or Savings Plans

Some employers, particularly multinationals and large local companies, offer additional retirement savings or pension-style plans on top of mandatory social security. These may take the form of defined contribution schemes, group savings plans, or access to investment products with employer matching.

Such plans are used to attract and retain experienced professionals who are thinking about long-term financial security. Implementing these benefits typically involves partnering with a financial institution and setting clear eligibility and vesting rules.

Education, Training, and Professional Development

Education benefits include covering the cost of professional certifications, conferences, short courses, and sometimes partial tuition assistance for degree programs related to the employee’s role. These are particularly attractive in sectors such as technology, finance, and engineering.

Employers offer development benefits to build internal capability, improve performance, and increase loyalty. Policies often include conditions such as a minimum service period after completing sponsored training. Investment in development is seen as an important non-cash benefit in Jordan’s increasingly skills-driven economy.

Life and Accident Insurance

Group life and accident insurance provides financial support to employees’ families in the event of death or serious injury. Coverage levels may be linked to multiples of monthly salary, and premiums are usually fully funded by the employer.

Companies offer these policies to enhance the protection already provided through social security and to provide peace of mind to employees who support extended families. This benefit is especially appreciated in sectors with higher physical risk or frequent travel.

Flexible Working Arrangements and Remote Work Support

While not mandated by law, flexible hours and remote or hybrid work options are increasingly popular in Jordan, particularly for knowledge-based roles. Supplemental support might include home office stipends, internet allowances, or flexible start and finish times.

Employers adopt flexible work policies to attract talent, especially younger professionals and working parents, and to widen their recruitment pool beyond Amman. Clear eligibility criteria and performance expectations are crucial for making flexible work successful.

Tax Implications of Employee Benefits in Jordan

How Employee Benefits Are Taxed for Employees

In Jordan, employment income is generally subject to personal income tax, and many cash benefits and allowances are treated as taxable income. This can include performance bonuses, certain allowances, and some in-kind benefits, depending on how they are structured and valued under tax regulations.

Your company is typically required to withhold income tax at source based on progressive tax brackets and remit it to the tax authorities. Employees should receive clear payslips showing gross income, benefits, deductions, and net pay so they can understand their tax position.

How Employee Benefits Are Treated for Employers

Most mandatory benefits, such as employer social security contributions and certain supplemental benefits directly related to business operations, are generally deductible business expenses for corporate income tax purposes. This reduces your company’s taxable profits, though you should confirm treatment with a local tax adviser.

Employer-paid premiums for group health, life, or accident insurance may also be tax-deductible, provided they are properly documented and structured as employee benefits. The key is consistent treatment and alignment with current Jordanian tax guidance.

Tax Advantages of Specific Benefits

Some benefits can be structured in ways that are more tax efficient for employees and employers than equivalent cash salary. For example, employer contributions to certain insurance or retirement-related products, if recognized by tax rules, may attract more favorable treatment than direct cash bonuses.

Because Jordan’s tax rules and interpretations can evolve, you should consult a local tax professional before relying on specific tax advantages. Proper planning can help you design a benefits package that delivers maximum value without creating unexpected tax burdens.

Documentation and Compliance Requirements

For tax compliance in Jordan, your company must maintain detailed payroll records showing wages, benefits, allowances, social security contributions, and income tax withholdings. Contracts, benefits policies, invoices from benefit providers, and proof of payment are essential supporting documents.

Accurate monthly and annual filings with the tax authorities and the Social Security Corporation are critical to avoid fines and audits. Implementing a robust payroll and HR information system will make it easier to track taxable benefits and generate the reports you need for compliance.

Legal Considerations for Employee Benefits in Jordan

Employee benefits in Jordan are primarily governed by the Labour Law and the Social Security Law, along with implementing regulations and instructions issued by the Ministry of Labour and the Social Security Corporation. These laws define minimum standards for working conditions, leave, social insurance, and health and safety protections.

Non-compliance can result in administrative fines, payment of arrears, penalties from the Social Security Corporation for unpaid or late contributions, and, in serious cases, suspension of operations or legal proceedings. Disputes may be brought before labour offices, mediation bodies, or the competent courts, and inspectors from the Ministry of Labour and the Social Security Corporation have powers to review your records and practices.

Your company should regularly review employment contracts, handbooks, and benefit policies to ensure they meet or exceed the legal minimums in Jordan. An annual or biannual audit of payroll, leave records, and social security contributions, ideally supported by local legal and tax advisers, is recommended to identify and address compliance gaps before they become enforcement issues.

How Benefits Impact Employee Cost

Mandatory benefits in Jordan, particularly social security contributions, paid leave entitlements, and any end-of-service obligations for certain employees, can add a significant percentage to your base wage costs. As a rough guide, employer social security contributions alone can be around the low teens as a percentage of gross salary, with additional indirect cost from paid time off and public holidays.

To manage total compensation costs, many employers in Jordan design a balanced package that combines a competitive base salary with targeted supplemental benefits such as health insurance and performance bonuses, which can be adjusted based on business results. When structured well, benefits deliver a strong return on investment by improving retention, supporting employee wellbeing, and enhancing productivity, often at a lower long-term cost than constantly increasing base pay or replacing high-turnover roles.