Using an Employer of Record in Jordan

Hiring and paying employees in Jordan can be complicated. Local labor laws, payroll regulations, tax obligations, and employment benefits must all be handled correctly to remain compliant. 

For companies expanding into the Middle East or building a global workforce across borders, these requirements can quickly become overwhelming, especially without an established legal presence in the country.

That’s where an Employer of Record in Jordan comes in. 

Using an EOR like Payoneer Workforce Management helps simplify the process of engaging local talent. 

The EOR acts as the legal employer on your behalf, offering support with handling payroll, onboarding, benefits administration, and compliance with local employment laws.

If you’re exploring engaging international talent, keep reading to learn more about using an Employer of Record in Jordan, or get in touch with Payoneer Workforce Management to find out how to engage talent quickly and compliantly across the globe. 

How to hire employees in Jordan

Companies looking to engage talent in Jordan typically have three main options, each of which comes with different costs and operational implications.

1. Set up a local entity

Registering a legal entity in Jordan allows you to hire employees directly. However, this process can be time-consuming and costly. It requires ongoing legal, accounting, payroll, and tax expertise, as well as compliance with evolving employment laws.

2. Hire independent contractors or freelancers

Hiring contractors may seem like a flexible alternative, but worker misclassification is a serious risk in Jordan. If a contractor is deemed an employee under local law, companies may face penalties and back taxes.

3. Partner with an Employer of Record (EOR)

Using an Employer of Record in Jordan offers a streamlined and cost-effective option. An EOR legally employs workers on your behalf, helps manage payroll and statutory contributions, and helps you stay compliant with local regulations.

Payoneer Workforce Management acts as an Employer of Record in Jordan, enabling companies to compliantly engage talent across borders through our technology platform.

How to onboard employees in Jordan

Onboarding employees in Jordan involves: 

• Employment contracts
• Payroll registration
• Benefits enrollment
• Compliance checks 

When handled internally, this process can take weeks or months. With an Employer of Record in Jordan, companies can streamline onboarding.

The employee onboarding process typically includes:

• Payroll and benefits activation: Set up the local candidate in the payroll system and complete all mandatory benefit registrations required by local labor regulations.
• Equipment and workspace setup: Ensure the employee receives all necessary devices, tools, and system access so they can begin work seamlessly.
• First-week onboarding session: Provide a structured overview during their initial week to introduce company policies, processes, and expectations tied to the role.
• Team introductions: Arrange meetings to help the employee connect with their immediate team and build familiarity with colleagues across the wider organization.

Pay employees in Jordan

Managing Jordan payroll requires careful attention to currency, pay schedules, taxes, and statutory benefits. 

Jordan payroll essentials

You’ll need to pay employees in Jordan in Jordanian dinar (JOD), the local currency. Salaries are usually paid on the last day of each month. The minimum wage in Jordan is JOD 260 per month. Employers are not legally required to provide an annual bonus.

Tax and social security

Jordan has a progressive income tax system with rates ranging from 5% to 30% depending on the employee’s income level.

Social security contributions are mandatory for private-sector employees and are paid by both employers and employees. Social security in Jordan covers pensions, disability benefits, and other social protections. This is managed by the Social Security Corporation (SSC).

Health insurance

Public health insurance is provided through the Civil Insurance Program (CIP) administered by the Ministry of Health. Enrollment is not mandatory and covers approximately 60% of the population.

Using an Employer of Record in Jordan offers a streamlined way to pay employees. Payoneer Workforce Management’s unified, all-in-one platform gives you a single dashboard to manage a global workforce.

Employment laws in Jordan

Jordan’s labor laws regulate working hours, overtime, probation, and termination. Staying compliant is essential to avoid disputes and penalties.

Working hours and overtime

The standard working week in Jordan is 40 hours. Total working time, including overtime, must not exceed 10 hours per day. Overtime is capped at 30 cumulative days per year.

Overtime compensation depends on when the additional hours are worked:

Timing	Overtime pay
Regular working days	1.25 times the normal hourly rate
Weekends and public holidays	1.5 times the normal hourly rate

With employee approval, overtime may be compensated with time off instead of additional pay.

Probation and notice periods

There is no minimum probation period in Jordan. The maximum probation period is 3 months, and it cannot be extended.

During probation, there is no statutory notice requirement. Once probation ends, the standard notice period is 1 month, unless a longer period is specified in employment contracts.

Get support to stay compliant with local labor laws using Payoneer Workforce Management’s infrastructure.

Minimum wage in Jordan

The minimum wage in Jordan is currently JOD 260 per month. This applies to most private-sector employees, though certain exemptions may apply depending on role and industry.

Minimum wage regulations can change, so employers should regularly check for updates from Jordan’s Ministry of Labor.

Employment contracts in Jordan

Employment contracts in Jordan should clearly define the terms of employment and align with local labor regulations. Common elements include:

• Job title and responsibilities
• Salary and payment frequency
• Working hours and overtime terms
• Leave entitlements
• Probation period and notice requirements
• Termination conditions

It is typically best to draft employment contracts that comply with the Jordanian employment law. You may onboard talent quickly and securely with localized contracts and payroll through Payoneer Workforce Management.

Leave policy in Jordan

Jordanian labor law sets minimum requirements for vacation time, public holidays, sick leave, and family-related leave.

Public holidays and vacation time

Jordan observes 16 public holidays each year. Of these, 3 are statutory holidays, and the rest vary. 

Employees with less than 5 years of service receive 14 days of paid vacation leave per year. For those with more than 5 years of service, the number of paid vacation days goes up to 21. 

Leave can be carried forward for up to 2 years, with no cap on the number of days that can roll over. Unused leave must be encashed at the end of the carry-forward period if not taken before termination or resignation.

Sick leave

Employees can claim up to 14 days of sick leave per year.

Maternity and paternity leave

Mothers are entitled to 10 weeks of maternity leave, totaling 70 days. They can choose to take up to 12 months of unpaid childcare leave.

Fathers are entitled to 3 days of paternity leave.

Compassionate leave

Employees in Jordan are entitled to 3 days of compassionate leave for the death of a spouse, child, parent, or sibling.

Work permit in Jordan

Work permit requirements in Jordan vary based on the employee’s nationality and role. Employers and employees should consult official government resources for the most accurate and up-to-date information.

An Employer of Record in Jordan can help navigate work authorization requirements where applicable.

Background check in Jordan

Background checks may be conducted before engaging in Jordan, subject to local regulations. These can include address verifications, criminal record checks, employment history verification, and education checks.

Employers typically need employee consent and must disclose what checks will be performed.

Employment termination in Jordan

Employment termination in Jordan must follow local regulations. Termination without valid grounds may be considered unfair dismissal and can lead to legal consequences.

Valid termination scenarios

Employment may end due to employee resignation, mutual agreement, termination during probation, or employer-initiated termination for reasons such as misconduct, performance issues, absenteeism, or redundancy.

Notice period

The standard notice period is 1 month, unless a longer period is specified in the employment contract. Payment instead of notice may apply if notice is not provided.

Severance pay

Employees in Jordan are entitled to severance pay equal to 50% of their monthly salary for each year of service, at a minimum of 2 months’ pay. 

If the required notice period isn’t given, employers must pay 30 days’ salary in lieu of notice.

Termination is complex and should always be handled on a case-by-case basis. Many companies choose to partner with an Employer of Record in Jordan for support to stay compliant.

Company registration in Jordan

Some companies might want to register a local entity in Jordan to establish a long-term presence, open offices, or conduct regulated activities. Information on company registration can be found on official government websites.

However, for most global talent engagement needs, an Employer of Record in Jordan is a quicker and cost-effective solution.

Payoneer Workforce Management enables compliant onboarding and engagement of talent in 160+ countries, including Jordan, without setting up a legal entity.

PEO in Jordan

A Professional Employer Organization (PEO) in Jordan can support HR and payroll functions, but requires you to have a legal entity in-country. 

On the other hand, an Employer of Record in Jordan does not require a legal entity. Instead, it acts as the legal employer for the local team. This often makes it the better choice for companies new to the Jordanian market.

Payoneer Workforce Management’s Employer of Record services in Jordan

Payoneer Workforce Management helps growing companies onboard, pay, and manage employees in Jordan without setting up a local entity. 

As your EOR in Jordan, we offer assistance with employment contracts, benefits administration, taxes, and payroll.

Book a demo to learn more about Payoneer Workforce Management.

FAQs

What is an Employer of Record in Jordan?

An EOR in Jordan is a third-party organization that legally employs your workers on your behalf and manages payroll, taxes, and compliance responsibilities, allowing you to engage talent without establishing a local entity.

How much does it cost to hire Jordan?

The employer costs are approximately 16.25% on an annual salary of USD 60,000. For a detailed breakdown of employment costs, use our employee cost calculator.

Why should you hire talent with an EOR in Jordan?

Working with an EOR in Jordan can help companies streamline hiring and payroll. An EOR, like Payoneer Workforce Management, offers support to onboard and pay independent contractors and employees across the globe in 70+ currencies. Speak with us for more information.