With a population of over 10 million people, and a 90% of the GDP from foreign investments, doing business in Jordan offers companies many opportunities for growth. Getting started in Jordan and keeping up with payroll and compliance regulations can be challenging, so it’s important to understand the unique payroll and labor regulations.

The corporate tax rates in Jordan vary by sector. In the Banking industry, the tax rate is 35%, Telecom is 24%, and Industrial is 15%. Jordan has a National Contribution Tax, paid at a rate between 1-7%. This new tax is intended to pay the Jordanian public dept.

Payroll and Tax Considerations:

  • The minimum wage for private sector workers is JOB 260 per month
  • The minimum wage for migrant workers is JOB 230 per month. Some migrant workers are exempt from the minimum wage, such as garment and textiles and loading/unloading sectors
  • Overtime is paid at 125% for their regular pay for overtime. Holiday overtime is paid at 150% of regular pay
  • Current tax rates range from 5-30%. Anyone making more than JOD 200,000 is also subject to a 1% National Solidarity Tax
  • Employment contracts must be written in Arabic. Oral agreements are legal, but if no written contract is made the employee may establish their rights by all legal means of evidence

HR and Statutory Requirements

  • For every year of employment workers must receive at least 14 days of paid annual leave. After 5 consecutive years with the same employer it extends to 21 days
  • Every employee is entitled to 14 days annual sick leave with full pay if they present a report from an approved medical practitioner. This can be extended another 14 days in case of hospitalization
  • Female employees receive 10 weeks of paid maternity leave, including before and after birth. Leave after delivery can be no less than 6 weeks

Holidays in Jordan

  • January 1 – New Year’s Day
  • May 1 – Labour Day
  • May 3 – Eid al-Fitr
  • May 4 – Eid al-Fitr holiday
  • May 5 – Eid al-Fitr holiday
  • May 6 – Eid al-Fitr holiday
  • May 25 – Independence Day
  • July 9 – Arafah
  • July 10 – Eid al-Adha
  • July 11 – Eid al-Adha holiday
  • July 12 – Eid al-Adha holiday
  • July 13 – Eid al-Adha holiday
  • July 30 – Muharram / New Year
  • October 8 – Prophet’s Birthday
  • December 25 – Christmas Day

If you are just getting started in Jordan, or need to make improvements to payroll, we can help. Blue Marble has created a cloud-based payroll platform with customized monthly reporting across all countries and currencies so you can view payroll in real-time and ensure compliance. We provide a dedicated US-based service team and in-country experts in Jordan to help when questions come up. Talk to us today about getting started in Jordan or simplifying your existing operations. Click here to learn more