A. Update
The Jordanian Social Security Corporation has released an amendment system No. (56) of 2024 pertains to the social security insurance coverage system. Accordingly, the social security salary will be revised as follows.
- Employers are required to adjust and update the social security salary with every salary change during the year. Under the previous system, the wage of the insured on which social security is deducted was fixed only in January of each year.
- The employers must now report any salary changes to the Social Security authority in a timely manner, ensuring the accuracy of the registered Social Security salary.
Disclaimer: The regulatory instructions are yet to be published by the Social Security Corporation on how the change of salaries should apply.
B. Statutory Compliance Release Date: October 15,2024
C. Effective Date: September 01,2024
A. Update
The Jordanian Social Security Corporation announced an increase in the maximum monthly salary subject to social security contribution calculation and the monthly maximum unemployment allowance for the year 2024.Accordingly,
- Employees who joined social security on or after May 01,2010, their maximum ceiling on monthly salary to calculate social security has been increased from 3,538 dinars to 3,612 dinars.
Note: There has been no change for the employees joining social security before May 01,2010. - Unemployment allowance to increase from 591 dinars to 600 dinars.
B. Statutory Release Date: April 16,2024
C. Effective Date: May 01,2024
A. Update
The Jordanian Social Security Corporation announced an increase in the maximum monthly salary used for the calculation of social security contributions and the monthly maximum unemployment allowance for the year 2023.
Accordingly, the amounts are increased to:
3,538 dinars from 3,394 dinars for the calculation of social security contributions for those employees who joined before May 01,2010; and
591 dinars from 567 dinars for the unemployment allowance.
However, employee salaries who are subject to the ceiling of JD 5,000 or higher were not affected by this change.
B. Statutory Release Date: April 18,2023
C. Effective Date: January 01,2023
A. Update
The Ministry of Labour in Jordan has recently released instructions related to the provision of alternatives to institutional nurseries for the year 2023 under Article 72b of the Jordanian Labor Law of 1996 and its subsequent amendments.
The provisions of the afore mentioned ordinance applies to the private sector where the employers having employees with their total number of children taken together in nursery exceeds 15 and the employers are unable to provide suitable places for the care of children in or around the organisation then the employer must grant an allowance to the employees as per the below thresholds:
| Monthly salary | Nursery allowance per child per month |
|---|---|
| >JOD500 | JOD 30 |
| JOD301 – JOD500 | JOD 40 |
| < JOD300 | JOD 50 |
It is important to note that if both spouses are employed and eligible for the allowance, it is not permissible to receive double benefits for the same child. In such cases, both spouses must mutually agree on which one of them will benefit from the alternatives stipulated in the instructions within the higher category mentioned above.
B. Statutory Compliance Release Date: February 16, 2023
C. Effective Date: February 16, 2023
Jordan government issued:
Nursery Instructino- Ministry of LabourA. Update
The Jordanian Social Security Corporation announced an increase in the maximum monthly salary used for the calculation of social security contributions and the monthly maximum unemployment allowance for 2022.
Accordingly, the amounts are increased to:
3,394 dinars from 3,349 dinars for the calculation of social security contributions for those employees who joined before May 01,2010; and
567 dinars from 559 dinars for the unemployment allowance.
Corporation has also announced the annual increase in pension salaries by 4.6 dinars, according to the announced inflation rate, which is 1.35%, as this increase is distributed equally on pension and disability salaries
B. Statutory Compliance Release Date: May 21,2022
C. Effective Date: May 01,2022
A. Update
Due to the impact of COVID-19, the Jordan Government has extended the effective period of the Empowerment Programme up to Financial year 2021. As a result, companies have the option to benefit from this programme and apply the reduced pension contributions rates as provided below:
| Contribution percentage | Contribution percentage | |
|---|---|---|
| Employee Contribution | 1 | 4.25 |
| Employer Contribution | 4.25 | 9.25 |
The above rates can be applied by Companies post taking approval from social security department. Also the reduced contribution rates can be applied retroactively from January 2021.
B. Statutory Compliance Release Date: March 20, 2021
C. Effective Date: January 01, 2021
A. Update
As per instruction issued by Ministry of labor, the employer shall pay Nursing allowance to employees having children of age not exceeding the age limit specified under nursery school system. In accordance with the instructions, it is applicable on employers having such number of workers with not less than 15 children.
The employer shall contract with one of the approved institutional nurseries and contribute to cover the financial cost of the nursery for employees based on the monthly salary of employees as follows:
| Monthly Salary | Monthly Nursing Allowance |
|---|---|
| JOD 300 or less | JOD 50 |
| JOD 300 and JOD 500 | JOD 40 |
| JOD 500 - JOD 1000 | JOD 30 |
| More than JOD 1000 | 0 |
The Nursing Allowance paid is fully taxable in hands of employees.
B. Statutory Compliance Release Date: February 22, 2021
C. Effective Date: February 01, 2021
A. Update
As per the Income Tax Authority's new submission instructions related to the payroll tax for the year ended December 2020, the salary sheet should be submitted monthly in addition to existing annual submission. The template of salary sheet remains same as for Annual filing. The filing should be done once the payroll tax for the related month is paid.
B. Statutory Compliance Release Date: February 18, 2021
C. Effective Date: January 1, 2020
A. Update
As a result of the Covid-19 pandemic, the Jordan Government has provided an option to employer to apply the reduced pension contributions rates for the months March to May 2020. Please find the below table which specifies the period of application of the relevant contribution rates:
| Contributor's Category | Up to February 29, 2020 | March 01 - May 30, 2020 | June 01, 2020 onwards |
|---|---|---|---|
| % | % | % | |
| Employees | 7.5 | 1 | 7.5 |
| Employees | 14.25 | 4.25 | 14.25 |
Please note that it is optional for companies to apply reduced rates on all or certain employees.
B. Statutory Compliance Release Date: March 19, 2020
C. Effective Date: March 01, 2020
A. Update
The Prime Minister, Jordan has recently issued Defense Order No. 14. The order is the protection scheme targeting private entities in the tourism and transport sectors and other entities designated as highly affected by the COVID-19 crisis (determined by the social security) who have been affected by the COVID-19. In order to avail the protection scheme, private entities need to apply to the social security corporation and obtain their approval.
The contribution to be made by the employer as per the applicable limit is 21.75% i.e. (7.5% as of the employee contribution and 14.25% as employer contribution).
As per the instructions issued in new Defense order, employer will not stop the applicable Social security deduction during the benefit of the defense order. However, a new program “Economic Empowerment 1“ has been issued in this regard, and accordingly the private entity may apply to the Social Security Corporation to reduce contributions rates to be as follows (Total contribution of 13.5%: 4.25% as of the employee share, 9.25% as of the employer share).
In addition to above, the scheme provides to allocate 50% (20% as employer share and 30% as social security office share) of ‘subject salary’ for their registered employee covered in the month of June 2020. The maximum and minimum contribution shall be 400 JOD and 220 JOD respectively.
