Employer of Record in Jordan

General Information

• Currency: Jordanian Dinar (JOD)
• Employer Taxes: 14.25%
• Payroll Frequency: Monthly
• Employee Costs: 7.50%
• Capital: Amman
• Fiscal Year: January 1 – December 31

Main Aspects of the Labour Code

Minimum Wage

General: The Tripartite Committee for Labor Affairs decided to fix the minimum wage in Jordan at JOD 260 for the years 2023 and 2024.

Payroll

Payroll Cycle: In Jordan, payroll is processed on a monthly basis, with payments required to be made on the same day each month and no later than the last working day. Some employers may opt to pay their employees on a bi-weekly schedule instead.

Working Hours

General: 8 hours per day, 48 hours per week, Sunday to Thursday.

Overtime: When employees are asked to work overtime or on holidays, there are limits on the number of hours permitted. According to Article 57 of the Labor Law, mandatory overtime is capped at 30 days per year.

Overtime must be compensated at a rate of 125% of the regular salary on working days and 150% on holidays or rest days. Exemptions may apply to certain employees, such as supervisors and managers.

Leave

Annual Leave (Vacation):

Employees are entitled to a minimum of 15 days of annual paid leave increasing to 21 days after five years of service. Each employer can decide their own carryover policy.

Public Holidays

Holidays falling on weekends are moved to the following Monday as a day off in lieu.

Certain religious holidays are determined by the lunar cycle and will be confirmed nearer the date of the holiday.

Sick Days

Employees are entitled to 14 days a year at full pay by the employer. A further 14 days might be required in cases of hospitalization or based on a doctor’s recommendation.

Maternity Leave

Pregnant employees are entitled to ten weeks of maternity leave with full pay, which includes time off both before and after delivery. The leave following delivery must be no less than six weeks. Upon returning from maternity leave, the employee is entitled to one hour of leave during the workday to nurse her child until the child turns one.

Employers with at least twenty married women employees must provide a suitable facility, supervised by a trained nurse, for the children of employees under four years old, provided that at least ten children are in that age group.

Paternity Leave

The amended labor law grants new fathers three days’ leave from work with full pay after the birth of a child, whereas before, the labor law previously made no provision for paternity leave.

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