Employment in Jordan is governed by the Labour Law No. 8 of 1996 and its amendments, with social insurance administered by the Social Security Corporation. Here is what employers need to know about leave, pay, tax and ending employment.
The Labour Law sets minimum paid leave for private sector employees. Employment contracts, internal regulations and collective agreements can give more, but never less.
Paid leave a year, rising to 21 days after 5 years of continuous service with the same employer. Official and religious holidays and weekly rest days are not counted.
Full pay each year on a medical report. It can be extended by a further 14 days on full pay if the employee is hospitalised.
Fully paid leave before and after the birth, of which at least 6 weeks must be taken after delivery. Paid by the Social Security Corporation for insured employees.
Paid leave for fathers on the birth of a child, paid by the employer.
Set up each Jordanian leave type in IceHrm with its own accrual, carry forward and approval rules, including the move from 14 to 21 days of annual leave after 5 years. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
The minimum wage is set by the Tripartite Committee for Labour Affairs and approved by the Council of Ministers. The working week usually runs from Sunday to Thursday, with Friday as the weekly rest day.
For private sector employees, in force from 1 January 2025. Check for later revisions by the Tripartite Committee.
Excluding meal and rest breaks. Overtime needs the employee’s agreement.
Of the normal hourly wage for overtime on working days. Work on the weekly rest day or an official holiday is paid at 150%.
Capture attendance and overtime in IceHrm, including work on rest days and holidays, and feed the hours straight into payroll at the right rate. Time & attendance →
Jordan taxes individuals at progressive rates on income earned in or from Jordan. Employers withhold tax from salaries every month and pay it to the Income and Sales Tax Department (ISTD).
| Taxable income | Rate |
|---|---|
| First JOD 5,000 | 5% |
| Next JOD 5,000 | 10% |
| Next JOD 5,000 | 15% |
| Next JOD 5,000 | 20% |
| JOD 20,001 – JOD 1,000,000 | 25% |
| Over JOD 1,000,000 | 30% |
Each taxpayer has a personal exemption of JOD 9,000 a year, plus JOD 9,000 for resident dependants and up to JOD 5,000 more for medical, education and housing expenses. The total exemption for one family cannot exceed JOD 23,000.
Private sector employees, including non-Jordanians, must be registered with the Social Security Corporation (SSC). Contributions cover old age, disability and death, work injuries, maternity and unemployment, and are calculated on gross monthly wages up to a ceiling that is adjusted every year.
Of the employee’s insurable wage, paid by the employer on top of salary.
Deducted from salary by the employer and paid to the SSC together with the employer’s share.
Additional contributions apply for employees in occupations classed as arduous or hazardous. Check the current rate with the SSC.
Contributions are due monthly. Employers must register new employees with the SSC from their first day of work, and late registration or payment attracts penalties.
Build Jordanian pay the way you already structure it, with your own salary components, deductions and formula columns, such as SSC employer and employee contribution columns. Want to know how well IceHrm handles payroll calculations for Jordan? Contact us or see Payroll →
Employers in Jordan can only end an indefinite contract for a lawful reason. The Labour Law lists the cases where an employee can be dismissed without notice, such as serious misconduct, and dismissals for economic or technical reasons must be notified to the Ministry of Labour.
Either party can end an indefinite contract by giving at least 1 month’s written notice. A party that doesn’t give notice must pay the other a month’s wages in lieu. No notice is needed during probation or in the misconduct cases listed in the law.
Employees who are not covered by the old age insurance of the Social Security Corporation are entitled to end-of-service pay of 1 month’s wages for each year of service. For employees covered by social security, the SSC pension replaces this gratuity. If a dismissal is found to be arbitrary, the court can order compensation of between 3 and 6 months’ wages, in addition to notice pay and other entitlements.
Final pay includes wages up to the last working day and any unused annual leave.
Jordan’s official holidays combine fixed civic dates with Islamic holidays that follow the lunar calendar, so their dates move about 11 days earlier each year. The government announces the exact days off.
Employees who work on an official holiday are paid at least 150% of their normal wage for the hours worked.
Leave groups give each office its own holiday calendar, so you can add each year’s announced Eid dates once and have leave requests count working days correctly. Holiday calendars →
Employment contracts should be written in Arabic, in at least two copies, one for each party. If there is no written contract, the employee can prove the employment relationship and its terms by any means.
Probation cannot exceed 3 months, and the employer can end the contract during probation without notice or compensation. An employee cannot be placed on probation more than once with the same employer. If a fixed-term contract continues after it expires, it is treated as renewed for an indefinite period.
Send Arabic or bilingual contracts for e-signing, store them with work permits on the employee’s record, and track SSC registration with onboarding task lists. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Jordan, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Jordan? Talk to us.
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