How to hire and pay Jordan contractors

Whether you’re looking to fill gaps in your workforce, launch a short-term project, or cope with a surge in seasonal demand, hiring Jordan contractors gives you the flexibility you need. You can tap into a talented workforce without recruiting and onboarding new employees.

But before you start your search for an independent contractor, you need to understand how to hire contractors in Jordan legally and efficiently. Get things wrong and you could be facing hefty fines and penalties.

With Payoneer Workforce Management (WFM), the process is easy. You can hire and pay contractors using our workforce management platform, automating payments and streamlining expenses to support an effective contractor partnership.

This article explains how to hire and pay contractors in Jordan so you can begin your Jordanian talent search.

How to hire contractors in Jordan

To hire contractors in Jordan, you need to:

• Understand contractor vs. employee classification to avoid fines and penalties.
• Understand local labor laws so you’re clear on your obligations and contractor expectations.
• Find and hire contractors in Jordan using recruitment tools that are popular with Jordanian workers.

Let’s take a look at each of these steps in more detail.

1. Understand contractor vs. employee classification

In Jordan, employees are entitled to certain rights and benefits. Contractors, however, are not. As a result, incorrectly classifying an employee as a contractor can be a substantial legal risk for your company. Misclassification can result in penalties and fines, with employers liable to pay any owed wages and benefits.

So, what are the key differences between a contractor and an employee?

An employee works under the supervision and control of an employer. The employer chooses when, how, and where an employee works and withholds taxes, paying them on an employee’s behalf. Employees are entitled to benefits like paid leave, social security contributions, health insurance, and severance pay.

Meanwhile, a contractor works independently based on a service contract. They’re not entitled to employee benefits and are responsible for their own taxes and retirement plans. Contractors have autonomy over their hours, place, and style of work, and they typically provide services to a company for a fixed period.

2. Understand local labor laws

Many labor laws don’t apply to independent contractors and only apply to employees. However, understanding local labor laws gives you a sense of the employment landscape in Jordan. It can give you a better idea of contractor expectations and can help you develop a more positive working relationship with Jordan contractors. 

Here are some key labor laws in Jordan to be aware of:

• Minimum wage: The minimum wage in Jordan is 290 JOD per month. This is equivalent to around $409 USD. There is no minimum wage for contractors, but they often use industry standards to set their rates.
• Working hours: The standard working hours are 48 hours per week, eight hours per day. Any overtime is paid at a rate no less than 150% of an employee’s standard wage.  
• Public holidays and annual leave: Employees are entitled to 14 days of paid annual leave per year. This extends to 21 days after an employee has spent five years with the same company. There are also around 12 public holidays per year.  
• Rights and legal protection: Employees are entitled to benefits, including 14 days’ sick leave, 10 weeks’ maternity pay, and social security contributions, which are paid by their employer.

3. Find and hire contractors in Jordan

Once you understand your legal obligations, it’s time to find and hire Jordan contractors. There are various ways you can find a contractor. You can post ads on any of the following:

• Bayt.com: A leading job site in the Middle East and North Africa.
• Akhtaboot: A jobs site that specializes in roles in the Middle East.
• LinkedIn: A great way to establish and reach a global network.
• WUZZUF: A job board for Egypt and the Middle East.
• Indeed: One of the largest and most widely used job boards in the world.

When vetting applications, ask candidates for references and relevant experience. Then interview your shortlist, getting a sense for how each contractor likes to work and whether you can imagine a productive partnership between them and your company.

Once you’ve offered the work to a contractor, it’s important to put a contract in place. This contract should outline the scope of work, specify any deadlines, and include a payment schedule. You’ll also need to agree on how and when you will pay your Jordanian contractor.

How to pay contractors in Jordan

To pay contractors in Jordan, you need to:

• Determine how to pay. Choose your payment method or platform, taking into account any associated fees.
• Ensure your Jordanian contractors have the correct​​ tax information, so they can take responsibility for their taxes and financial reporting.
• Pay your Jordanian contractor according to your agreed payment schedule.

1. Determine how to pay 

When deciding how to pay contractors in Jordan, you have a few different options, including:

• Bank transfers: Transfers are secure and traceable, but international transfers can take a long time to reach a contractor’s account.
• Online platforms: An online payment platform offers a simplified and streamlined way to pay contractors in various currencies.
• Crypto: Crypto payments are fast to process and enjoy low transaction fees. However, price volatility and technical complexity are drawbacks.

If you need to pay international contractors in multiple currencies, choosing a workforce management platform can help streamline the payment process.

2. Ensure your Jordanian contractors have the right tax information

Independent contractors in Jordan are required to file and pay their own taxes, so it’s essential to verify that they have the correct tax information.

Contractors have to register with the ISTD. They have to file quarterly estimated tax returns and annual tax returns, and they can deduct business expenses before paying their tax bill.

If you’re a US company, you also need to file the correct tax forms for Jordan contractors. These may include 1099 and 1042 IRS tax forms.

3. Pay your Jordan contractors

Once your contractor has completed the required work and sent an invoice, you can pay them. Just remember to factor in any fees and currency conversion costs when paying your Jordanian contractor.

Workforce management platforms, like Payoneer WFM, make the payment process easy. You can pay contractors in 70 different currencies and stay compliant with local laws.

Why Payoneer WFM is the easiest way to hire and pay contractors in Jordan

Payoneer Workforce Management is a platform that helps companies hire contractors and full-time employees in 160+ countries, including Jordan, without having to set up a legal entity.

Our comprehensive platform allows you to:

• Send and automate contractor payments in over 70 currencies
• Pay contractors on time, in their preferred currency
• Automate and simplify contractor expense tracking
• Manage contractor benefits, background checks, and more

Payoneer WFM has everything a business needs to hire, pay, and manage a team of global talent.

Jordan contractors FAQs

Can I hire an independent contractor in Jordan?

Yes, you can hire independent Jordan contractors. It helps to use a workforce management payment to streamline the hiring process and payments.

What are the labor laws in Jordan?

If you hire employees in Jordan, you have to abide by Jordanian labor laws. Jordan’s minimum wage is 290 JOD per month. The standard working week is 48 hours worked over six days. Overtime is paid at a rate of at least 150% and employees are entitled to 14 days of paid annual leave, rising to 21 days after five years’ service. Employees are also entitled to paid sick leave, 10 weeks of maternity pay, and social security contributions.

However, many of these labor laws don’t apply to Jordan contractors. Instead, you’ll need to agree on the terms of work with contractors before they start a project.

Can you manually pay contractors in Jordan?

Yes, you can manually pay contractors in Jordan, but this isn’t always a good idea. Manual payments raise the risk of compliance errors and security concerns and can create a bad experience for contractors, which can harm your working relationship.

A workforce management platform, like Payoneer WFM, lets you automate international contractor payments, which streamlines the process, improves security, and reduces the risk of errors.