Planning to hire employees in Jordan? Here’s a quick guide

The hiring process in Jordan is a complex process involving navigation through the Jordanian labor code. If you want to hire employees, you can either establish a local entity or partner with an Employer of Record. 

An Employer of Record (EOR) helps you engage with local talent and manage employees without setting up a local entity.

This guide walks through what hiring in Jordan actually looks like: how to engage talent, where to find candidates, what onboarding involves, and the laws that affect day-to-day employment. We will also cover how working with an Employer of Record (EOR) can simplify workforce management in Jordan. 

How to hire in Jordan

There are three common ways you can engage employees in Jordan:

1) Set up a legal entity in Jordan

Setting up a local entity gives you direct control. You recruit employees in Jordan, run your own payroll, and operate without going through a third party. 

The setup involves registering with several authorities, including the Ministry of Industry, Trade, and Supply (Companies Control Department), the local tax authority, and the Social Security Corporation. 

From start to ongoing compliance, the process takes months and a fair budget.

This route is suitable for companies planning long-term growth in Jordan with a sizable team. For smaller hiring needs, the cost rarely makes sense.

2) Hire contractors in Jordan

Independent contractors work well for short-term projects or specialized work. You can skip the payroll setup, social security filings, and most of the HR admin. Contractors typically handle their own hours, pay their own taxes, and do not get statutory leave or benefits.

The risk here is misclassification. A contractor working like an employee can trigger reclassification by Jordanian labor authorities. These signs include a fixed schedule, dedicated work, and consistent reporting. 

Moreover, reclassification can lead to back-paid social security contributions, fines, and possible wrongful dismissal claims. It is worth reading up on contractor misclassification penalties before going this route.

3) Use an Employer of Record (EOR) in Jordan

An Employer of Record (EOR) is a third-party organization. It legally employs talent in Jordan on your behalf and helps you manage employment contracts, payroll, tax withholding, social security, and benefits. 

For companies wanting to engage talent in Jordan without registering a local entity, this is usually a quick option. An EOR like Payoneer Workforce Management supports hiring in 160+ countries. So whether you are hiring one engineer in Amman or building a regional team across Jordan, Saudi Arabia, and the UAE, the same platform works.

Where to find employees in Jordan

Recruitment in Jordan starts with knowing where local candidates are looking. Here are some common options to find employees in Jordan:

1) Popular job boards in Jordan

Common platforms include:

• Akhtaboot, one of Jordan’s largest local job platforms
• Bayt.com, with a broad MENA reach
• LinkedIn
• Forasna
• Tanqueeb
• Indeed Jordan
• Glassdoor

2) Work with local recruitment agencies

Recruitment agencies in Jordan know the local market well and can save you time on screening. They work best for hard-to-source roles or senior-level hires. 

Most agencies charge a placement fee, which is usually a percentage of the first-year salary, so factor that into the budget.

3) EOR support

EOR support is not limited to just payroll. It primarily helps you with onboarding, drafting employment contracts, navigating local compliance, statutory requirements, and workforce management in Jordan. 

This allows you to manage resume screenings and interviews your way while receiving expert support with local compliance.

Onboarding employees in Jordan

Onboarding usually takes a few working days when an EOR handles it. Whether you do this in-house or with a partner, the steps look similar:

• Run a background check (with the candidate’s written consent)
• Issue a written offer letter, followed by a signed English or Arabic-language employment contract
• Register the employee with the Ministry of Labor within the first month of employment
• Enroll the employee with the Social Security Corporation (SSC) from day one
• Set up the monthly payroll in JOD
• Arrange devices, system access, and any benefits enrollment, such as private health insurance
• Schedule an orientation session for day one

Private health insurance plans are usually arranged at the employer’s discretion for employees and their dependents. Premiums vary based on the plan and coverage.

Key employment laws and requirements in Jordan

Most employment regulations in Jordan come from the Jordanian Labor Law, as amended over the years. The Social Security Law of 2014 covers benefits administered by the SSC. 

These two laws form the basis of what every employer needs to know.

Employment contracts

You have to draft contracts in Arabic and share one copy with the employees. An English version can run alongside the Arabic one. Standard contract content includes:

• Job title, scope, and reporting structure
• Salary, allowances, and pay schedule
• Working hours and rest days
• Probation period (capped at three months and not renewable)
• Annual leave and other entitlements
• Notice period and termination terms

Two contract types are common: fixed-term, used for project or defined-period roles, and indefinite-term, which are open-ended. 

Employment benefits

Employees in Jordan are entitled to a range of statutory leaves and benefits. Here is what employers need to provide:

Other key benefits include:

• Childcare leave: Mothers can take up to 12 months of unpaid leave for childcare.
• Carry-forward: Annual leave can be carried forward for up to two years. Anything not used has to be paid out at the end of the carry-forward period or when the employee leaves.
• Social security: Both employer and employee contribute to the Social Security Corporation, which covers pensions, disability, maternity, work injury, and unemployment.
• Health insurance: Public health insurance is not mandatory in Jordan. Private health insurance is also optional but commonly offered to employees and their dependents.
• Annual bonus: Optional, at the employer’s discretion.

Working hours and holidays

Under Jordan’s Labor Law, the standard workweek can go up to 40 hours, with daily hours capped at ten, including overtime. However, mandatory overtime cannot exceed 30 days a year.

Overtime pay rates work out to:

• Normal days: 25% over the regular hourly rate
• Weekends and public holidays: 50% over the regular hourly rate
• Days off: Overtime can be substituted with days off if the employee agrees

Further, Jordan recognizes 16 public holidays each year. Three are statutory, and the rest are non-statutory. Religious observances like Eid Al-Fitr and Eid Al-Adha shift in date each year.

Tax obligations

Two main payroll contributions apply each month:

1. Income tax withholding: Personal income tax follows a progressive scale of 5% to 30%, based on the employee’s income bracket. Employers withhold tax from each paycheck and submit it to the Income and Sales Tax Department (ISTD).
2. Social Security Corporation contributions: The employer pays approximately 14.25% of the employee’s gross salary. The employee pays 7.5%. Contributions go toward pensions, disability, maternity benefits, work injury cover, and unemployment insurance.

Moreover, the minimum wage for full-time employees in Jordan is JOD 260 a month. The rule applies to Jordanian citizens and most non-Jordanian workers.

Employer-side costs in Jordan typically run around 16.25% on top of an annual USD 60,000 salary, depending on benefits and other local factors. 

To estimate the full employment cost, use our employee cost calculator.

Termination and severance

The employment regulations in Jordan regarding termination are well-defined. Valid grounds for termination include: 

1. Resignation
2. Mutual agreement
3. End of probation, and 
4. Dismissal due to misconduct, poor performance, long unauthorized absence, or redundancy

Without valid grounds, termination can count as unfair dismissal, which opens the employer to additional compensation claims.

The standard notice period after probation is one month, unless the contract specifies otherwise. However, no statutory notice applies during probation. 

Severance is usually half a month’s salary for each year of service, with a minimum of two months. If no notice was given, an extra 30 days of pay applies. 

Explore Payoneer Workforce Management in Jordan

Hiring across borders has its complications. Tax regimes, leave policies, and contract requirements vary by country, and Jordan is no different.

Payoneer Workforce Management helps you engage talent in Jordan and 160+ other countries without setting up a local entity. 

As your EOR partner, we can assist with:

• Drafting locally compliant employment contracts
• Running monthly payroll in JOD
• Managing income tax withholding and contributions
• Setting up benefits, including private health insurance
• Tracking leave, time-off, and statutory holidays

If your needs lean toward contractors rather than full-time employees, our Agent of Record and Contractor Management System covers contracts, payments, and support to mitigate misclassification risks.

Looking to expand into the wider region? You can find country-specific information in our guides for Egypt and Morocco. 

Book a demo to learn more.

Frequently asked questions (FAQs)