Do I Need a Local Entity to Hire in Jordan?

In Jordan, a "local entity" typically refers to a recognized business presence, such as a subsidiary or branch office, that can act as your employer. This setup allows you to comply with local employment laws and manage payroll obligations effectively.

Without a local entity, you generally can't register as an employer, manage mandatory social security contributions, or run compliant payroll. An alternative is to use an Employer of Record (EOR), which allows you to hire employees while they handle compliance and payroll on your behalf.

What is Required to Employ Someone in Jordan?

• Local employing entity required to directly employ? Yes (you need a local entity for direct employment)
• Payroll registration required? Yes (registration with the Social Security Corporation is mandatory)
• Withholding/tax remittance required? Yes (income tax withholding is required for employees)
• Social contributions required? Yes (employers must contribute to social security)
• Local employment agreement required? Yes (employment contracts must comply with Jordanian labor law)
• Mandatory benefits to budget? Yes (statutory leave, social security, and health insurance are required)
• Works council/collective agreements considerations? Usually (some sectors may have collective agreements that apply)

Best Options If You're Hiring in Jordan

Can I Hire Contractors Instead of Setting Up an Entity?

Yes, but it’s essential to ensure that the contractor relationship is genuinely independent.

While hiring contractors in Jordan doesn’t require a local entity, misclassification risks exist if the contractor operates similarly to an employee. To mitigate these risks, consider the following:

• The contractor should have multiple clients and not be solely dependent on your business.
• They should control their work hours and methods, maintaining independence.
• Ensure the work is project-based and not integral to your core business operations.

How Long Does Entity Setup Take And What Does It Cost?

Typical entity setup timeline: It typically takes 4–8 weeks to establish an entity in Jordan, depending on the required registrations and approvals.

Ongoing cost categories (entity route):

• Accounting, bookkeeping, and statutory filings: Estimated 300–800 JOD per month ($423–$1,124)
• Payroll provider: Estimated 50–150 JOD per employee per month ($70–$211)
• Employer registrations and recurring compliance: Varies by complexity
• Corporate tax filings and annual reporting: Estimated 1,000–3,000 JOD per year ($1,406–$4,218)

EOR cost components (no-entity route):

• A per-employee EOR service fee (from $399 p/month with Playroll)
• Pass-through statutory costs (e.g., employer social security contributions, typically around 14.25% of gross salary)
• Any optional benefits you choose to provide beyond statutory minimums

How an Employer of Record Can Help You Hire in Jordan

Hiring in Jordan can be complex, but it doesn’t have to require setting up a local entity or taking on long-term overhead. With an Employer of Record like Playroll, you get a simple, predictable way to hire compliantly while keeping costs transparent and under control. We help you:

• Hire employees in Jordan quickly without establishing a local entity, eliminating incorporation costs, ongoing administration, and exit complexity.
• Stay fully compliant with local payroll, tax, and employment regulations with Playroll’s managed payroll services.
• Control your total employment costs, with a clear monthly EOR service fee (from $399 per employee).
• Focus on growing your business, while we manage contracts, payroll, compliance, and labor law obligations end to end.
• Scale up or exit the market easily, without the financial or legal burden of closing a local entity.