Hire employees in Jordan
What a foreign company needs to know before employing people in Jordan: whether you need a local entity, what an employee costs with 14.25% social security and no end-of-service pay for insured staff, how income tax withholding works, what a dismissal really costs, and which roles are closed to foreign workers. Written for CHROs, CFOs, General Counsel and founders.
Quick answers
The questions leadership teams ask first.
Do I need a local entity in Jordan to hire?
No. There are three routes:
- Employer of Record. Dryft Global employs the person through a compliant Jordanian employer registered with the Social Security Corporation (SSC) and the Income and Sales Tax Department (ISTD), issues the Arabic contract and runs monthly payroll. You direct the work.
- Direct local entity. You register a company with the Companies Control Department, then set up tax, social security, a municipal licence and a bank account.
- Independent contractor. Lawful only for a genuinely independent business. A full-time worker under your direction is an employee whatever the contract says.
When should I use an EOR instead of registering locally?
Use an EOR for your first hires and for technology, support or Arabic-language teams of up to about 50 people. You start in days and avoid registering with three authorities. Your own entity earns its keep for a larger centre, or where the 0% tax on IT export income or the Aqaba Special Economic Zone makes the set-up worthwhile.
What does an employee actually cost beyond salary?
Employer social security is 14.25% on wages up to JOD 3,733 a month in 2026. Employees covered by social security are not owed end-of-service pay, so there is no gratuity to accrue. On a JOD 1,500 salary the statutory cost is about 14%. Private medical cover and a discretionary bonus bring the all-in figure to roughly 16% to 27%.
How difficult is termination in Jordan?
Notice is one month for either party, but a dismissal without a valid reason is arbitrary dismissal. The employee has 60 days to sue, and the court can order reinstatement or 3 to 6 months' wages in compensation on top of notice. Summary dismissal is limited to the grounds in Article 28, and restructuring goes through the Ministry of Labour.
Can Dryft Global legally employ my team in Jordan?
Yes. Dryft Global acts as the legal employer through a registered Jordanian entity. We issue Arabic contracts, register employees with the SSC, withhold income tax monthly, pay wages within the legal deadline, and manage leave, notice and terminations under the Labour Law. For foreign hires we work through the work permit and Jordanisation rules before an offer goes out.
Hiring routes compared
Speed, local registration, tax administration and liability differ by route.
| Factor | Direct local entity | Dryft Global EOR | Independent contractor |
|---|---|---|---|
| Time to operational state | Several weeks | Days to 2 weeks | Days |
| Local entity required | Yes, Companies Control Department | No | No |
| Social security and income tax | Your SSC and ISTD files | Handled by Dryft Global | Contractor self-reports |
| Statutory liability | Direct corporate exposure | Assumed by Dryft's local employer | High if reclassified |
| Best fit | Larger centre, IT export incentives | Teams of 1 to about 50 | Discrete project work |
What an employee costs in Jordan
Jordan has one employer contribution, social security, and no end-of-service accrual for insured staff. The model below is an Amman software engineer on JOD 1,500 a month in 2026.
| Component | Employer share | Notes |
|---|---|---|
| Old age, disability and death | 11% | Employee pays 6.5% |
| Work injury | 2% | Employer only |
| Maternity insurance | 0.75% | Paid on all employees; funds maternity pay |
| Unemployment insurance | 0.5% | Employee pays 1% |
| Statutory subtotal | 14.25% | On wages up to JOD 3,733 a month |
| Private medical insurance | ~2% to 4% | JOD 300 to 800 a year, a typical budget |
| Discretionary bonus | 0% to 8% | Up to one month is common, not statutory |
| Total employer on-cost | ~14% to 27% | Above base salary on the model salary |
For an employee on JOD 1,500 a month, budget roughly JOD 20,600 to 22,900 a year all-in before the EOR fee, about USD 29,000 to 32,300 at the JOD 0.709 peg. Net pay for a single employee is about JOD 1,345 a month. Ask us for a cost model with current rates applied.
Payroll and tax
Salaries are paid monthly in dinars and must be paid within seven days of falling due. Income tax is withheld every month using ISTD tables that convert the annual bands and exemptions to monthly amounts, and the employer issues salary certificates that must match what was remitted. Social security goes to the SSC monthly, with interest of 1% a month on late payment. Employees with income above the exemption file an annual return by 30 April.
Progressive income tax
Rates are 5%, 10%, 15% and 20% on each JOD 5,000 slice of taxable income, then 25% up to JOD 1 million and 30% above. A 1% national contribution applies above JOD 200,000. Residents receive a JOD 9,000 exemption plus JOD 9,000 for dependants, and up to JOD 1,000 each for documented medical, education, rent and housing loan costs, with a family cap of JOD 23,000.
Statutory minimum wage
The national minimum wage is JOD 290 a month, in force since 1 January 2025 and fixed until 31 December 2027. Garment sector workers and non-Jordanian domestic workers were excluded from the increase. Underpayment and unequal pay between men and women carry fines of JOD 500 to 1,000.
Leave and mandatory benefits
- Annual leave. 14 days a year, rising to 21 days after five consecutive years with the same employer.
- Public holidays. Roughly 12 to 14 days, including Eid al-Fitr, Arafat Day and Eid al-Adha, Independence Day and Labour Day. Holiday work is paid at 150%.
- Sick leave. 14 days a year on full pay, plus 14 more on full pay if hospitalised.
- Maternity. 10 weeks on full pay under the law in force, funded by the SSC Maternity Fund for insured employees. A pending amendment would raise this to 90 days, so check its status before quoting.
- Paternity. 3 days on full pay.
- Working time. 8 hours a day and 48 a week, Sunday to Thursday in most offices. Overtime is paid at 125%, and rest day or holiday work at 150%.
- Flexible work. Part-time, flexible hours and remote work are recognised under Flexible Work Regulation No. 44 of 2024, with the employer's approval.
- No statutory 13th month. Bonuses are discretionary. Private medical insurance is expected for professional roles.
Termination and notice periods
Probation runs to three months, during which either side can end the contract without notice. After that, an indefinite contract needs one month's written notice, and the employer needs a valid reason to avoid an arbitrary dismissal claim.
| Situation | Requirement |
|---|---|
| Notice, indefinite contract | At least 1 month, either party |
| Arbitrary dismissal | Reinstatement or 3 to 6 months' wages, plus notice |
| Summary dismissal (Art. 28) | No notice, listed grounds only |
| Restructuring (Art. 31) | Ministry of Labour notice and tripartite committee review |
| End-of-service pay | Only for employees not covered by social security |
- Claims are quick. An employee has 60 days to bring an arbitrary dismissal claim.
- Warnings matter. Dismissal for breaching internal bylaws requires two prior written warnings.
- Pregnancy protection. Dismissal is barred from the sixth month of pregnancy and during maternity leave.
- Settle at exit. Waivers signed during employment may be void.
- Pending change. An amending bill would require Ministry consent for layoffs and protect the whole pregnancy. Check its status before planning a restructuring.
Can I use independent contractors?
Only where the person genuinely runs their own business: their own clients, schedule and tools, invoicing for output rather than a fixed monthly fee. Jordanian law treats anyone working under your management and supervision for a wage as an employee, whatever the label. Misclassification brings back social security with 1% monthly interest, income tax arrears, leave and overtime claims, and arbitrary dismissal compensation of 3 to 6 months' wages. Jordan has no EOR statute, so a compliant arrangement uses a Jordanian entity as the genuine employer; whether a particular staffing structure needs a Ministry of Labour employment office licence is a point to confirm with local counsel before launch.
The legal framework in brief
Jordan is a civil law system with one national labour code, amended several times since 1996. The instruments you will hear most:
- Labour Law No. 8 of 1996. Contracts, wages, hours, leave, termination and foreign workers, amended in 2019 and 2023. A further amending bill passed the House in 2025 but its publication had not been confirmed by November 2026.
- Social Security Law No. 1 of 2014. Employer 14.25% and employee 7.5%, a ceiling indexed each year, and coverage of foreign employees. A 2026 amending bill on retirement ages and SSC governance is in committee.
- Income Tax Law No. 34 of 2014, as amended in 2018. Personal bands, exemptions, withholding and corporate tax.
- Data protection. Personal Data Protection Law No. 24 of 2023, in force since March 2024: consent, data protection officers, 24 and 72 hour breach notices and restricted cross-border transfers.
- Immigration and right to work. Work permits before start, closed professions for foreign workers, a JOD 1,500 specialised skills permit and a 30% Jordanisation ratio for foreign-owned firms using it.
- Tax and entities. Corporate tax of 20% plus 1%, 5% for technology companies on local profits and 0% on IT export income until 2033, 5% in Aqaba, and no tax treaty with the United States.
- Authorities. Ministry of Labour, the SSC, ISTD, the Companies Control Department and the Ministry of Digital Economy and Entrepreneurship.
Where the talent is
About 12.05 million people, with unemployment of 16.1% overall and 21.0% among Jordanians in mid-2026, so hiring demand meets a large available pool. More than 46,000 people work in ICT, with about 7,000 ICT graduates a year and a national target of roughly doubling the workforce by 2033. Arabic is the official language and English is widely used in business. Time is UTC+3 all year, giving a full overlap with the Gulf and most of the European working day, and the dinar's dollar peg keeps budgets predictable.
| Region | Talent and industry concentration |
|---|---|
| Amman | Software, fintech, regional offices and shared services; King Hussein Business Park |
| Irbid | University city in the north with engineering and IT graduates |
| Zarqa | Industrial base close to Amman |
| Aqaba | Special Economic Zone with 5% income tax and simplified permits |
Jordan Implementation Kit
This page tells you the rules. The kit tells you what to do, in what order, and what goes wrong when you skip a step.
- Step-by-step checklist, from route selection to first payroll
- Arabic contract checklist under the Labour Law
- SSC and ISTD registration sequence with the monthly calendar
- Income tax worksheet with the 2026 bands and exemptions
- Work permit, closed profession and Jordanisation pre-check
- Notice, arbitrary dismissal and Article 28 termination pack
- Every official Jordanian authority with direct links
This guide is general information, not legal, tax or immigration advice. The social security ceiling changes each year, and amending bills to the Labour Law and the Social Security Law were pending in 2026. Confirm current figures with a qualified adviser or with Dryft. Last reviewed November 2026.
Ready to hire in Jordan?
Tell us who you want to hire and where they sit. You will get a cost model and a compliant route within a day, from a person who has done this before.