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Overview
Jordanian Dinar (JOD)
CURRENCY
Amman
CAPITAL
monthly
PAYROLL FRECUENCY
10
PUBLIC HOLIDAYS
0 to 14.25
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Jordan
Employer
Company Payroll Contributions
- 14.25%
Social Security
0% - 14.25%
Total Employment Cost
Employee
Worker Payroll Contributions
- 7.5%
Social Security
0% - 7.5%
Total Employee Cost
Employee Income Tax in Jordan
5%
Up to 5,000 JOD
10%
5,001 – 10,000 JOD
15%
10,001 – 15,000 JOD
20%
15,001 – 20,000 JOD
25%
20,001 – 1,000,000 JOD
30%
More than 1,000,000 JOD
Payroll Contributions in Jordan
Payroll Cycle
In Jordan, they payroll is monthly. Businesses usually hire payroll outsourcing businesses, such as Employer of Record in Jordan to provide payments.
13th Salary
There is no legal obligation to pay the 13th and 14th month's salary to employees in Jordan.
Employee Benefit in Jordan
There are no more benefits than the statutory ones in Jordan.
Visa and work permit in Jordan
Any foreign nationals you plan to hire in Jordan must have a work visa and authorization. While a working visa in Jordan allows your staff to work after they arrive, a work visa grants them authorization to enter the nation for employment-related reasons. A residency permit is required for all international employees. These vary according on the circumstances surrounding the application, such as marrying to a Jordanian citizen or employment there.
VAT in Jordan
A universal sales tax with a 16% rate that operates similarly to a VAT is in place. Companies can hire an Employer of Record in Jordan to abide by tax laws.
Working Hours in Jordan
General
Labor law prohibits forcing Jordanian employees to work more than 8 hours per day or more than 48 hours per week. Most businesses hire Professional Employee Organization services to make sure that they are abiding by the law.
Overtime
A worker may be hired past the ordinary working hours with their consent as long as they receive overtime pay at a minimum rate of 125% of their normal wage. If an employee works on his or her weekly rest days or on religious or government holidays, he or she must obtain overtime pay at a minimum of 150% of his or her regular rate. With an Employer of Record in Jordan or a PEO, companies make sure to honor this rule.
Working Week
From Sunday to Thursday.
Employee Termination in Jordan
Termination Process
Termination Process
An employment contract is deemed terminated in accordance with Section 21 of the Labor Law in the following situations:
- Both parties concur that it should end.
- Either the task itself has been finished or the contract's period has passed.
- A medical authority-verified illness or disability causes the worker to pass away or become incapable of working, depending on the situation.
The following circumstances may result in the employee's immediate termination by the employer:
- In order to obtain a benefit or harm others, the employee assumes a fake name or submits phony certificates or documents.
- The employee does not carry out the duties outlined in the job contract.
- If the employer fails to notify the proper authorities of the accident within 5 days after the date on which they learn of its occurrence, the worker has committed a fault that has cost the employer significant material harm.
- Despite receiving 2 warning letters, the employee continues to violate the workplace's internal rules, which include safety rules.
- If a worker misses work without a valid excuse for more than ten days in a row, or more than 20 days in a year, they may be fired provided that written notice of their dismissal is published at least once in a daily local paper and sent by registered mail to their address.
Notice Period
If the employer gives notice, he may or may not release the employee from employment for the length of the notice term, with the exception of the final seven days of the notice period. The employee is always entitled to his pay during the notice period.
If the employee gives notice and quits the job before the notice period is over, they forfeit their right to compensation for the time they were away and must make up the difference by paying the employer what would have been their own pay during that time.
Severance Pay
A worker is entitled to receive payment for any unused leave days if their job is terminated for any cause before they exhaust their annual leave.
Probation Period
The probation period in Jordan is 13 months.
Employee Leaves in Jordan
Paid Time Offs
Every employee should be eligible for 14 days of yearly leave pay each year of service. After five years of service, the employee should be eligible for 21 days of leave pay. With contractor management services companies can make sure to provide the rightful time off.
Public Holidays
There are 10 national holidays throughout the year.
Vacation Holidays
There are 25 vacation holidays throughout the year.
Sick Days
Every employee has the right to fourteen days of sick leave with pay every year, based on a medical practitioner's report that has been accepted by the establishment. If a worker is hospitalized, their sick leave may be increased for a total of fourteen more days, with full pay, and with half pay if they are not, but they present documentation from a medical board that has been accepted by the employer.
Paternity Leave
The Labor Law did not previously include a provision for paternity leave, but the new law provides new fathers three days of leave from work with pay following the birth of a child.
Paternal Leave
The law does not cover parental leave in Jordan.
Other Leave
Every employee who has worked for the employer for at least five years straight is eligible for fourteen days of paid leave each year to go on pilgrimage. During the employee's employment time, this type of leave may only be given once.
If a worker wants to enroll in a formally approved university, institute, or college, they are eligible for 4 months of leave.
Maternity Leave in Jordan
Women workers have the right to ten weeks of maternity leave pay, including recuperation during and after delivery. Leave after delivery must be at least six weeks lengthy, and work before the end of that period is illegal. Every working woman is eligible for time off with pay for nursing her newborn within a year after the end of her maternity leave, as long as the total amount of time off does not surpass an hour each day.
There are 70 leave throughout the year.