Establish your presence globally with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Jordan.
A country so rich in history that some of its most famous historical sites are yet to be fully explored. Petra in Jordan was discovered only a mere 2000 years ago, but researchers believe that the ancient city itself was established around 312 BC. Archaeologists have only uncovered around 15% of Petra, and the world is in a constant state of excitement to see more being explored and unveiled.
Just like Petra, only a small portion of the talent potential available in Jordan has been unearthed. If your organization’s expansion plans require you to hire employees in Jordan and you lack a physical entity in the country – a key requisite to hiring local talent, Neeyamo is your way to go. Neeyamo – Global Payroll Solutions assists organizations worldwide with onboarding and managing employees in Jordan- payroll accounting and payroll software processing, managing local compliance requirements, benefits, and more.
Tools And Instances
Facts And Stats
1 January - 31 December
Country Calling Code
Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity. The solution to this is using outsourced payroll providers or international payroll companies.
Payroll processing companies like Neeyamo outsource payroll services around the globe to aid companies in maneuvering the tricky payroll system in Jordan. The advantages of outsourcing payroll services include handling global payroll for all your needs, including - employees working in primary geographies, the long-tail region, remote or internationally located.
Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform - Neeyamo Payroll.
What is Payroll Processing?
Payroll processing involves the administration of employee compensation, encompassing salaries, deductions, bonuses, and related components. For global operations, the management of payroll processing often relies on the expertise of an external payroll service provider.
Payroll Register: Definition
A payroll register is a consolidated register of all the payroll transactions for every individual employee during each pay period. This registry is kept to assist employers in monitoring their historical records and past transactions.
Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare. These are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees.
Social Security - 7.5%
Personal Income tax rates are applied progressively as follows:
The first 5,000 - 5%
The second 5,000- 10%
The third 5,000 - 15%
The fourth 5,000 - 20%
Over 20,000 and up to 1,000,000 - 25%
The remaining balance - 30%
Social Security - 14.25%
Undoubtedly, payroll is a critical process for any organization. The pay cycle in Jordan refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.
In Jordan, the pay cycle is monthly.
13th Month Cycle
Paying the salaries for the thirteenth and fourteenth months is not mandated by law.
An Employer of Record (EOR) service provider helps you eliminate the hassle of handling complexities while onboarding a new employee in an international location. They help bridge the gap that otherwise mandates organizations to have a locally registered entity and a local bank account before making a job offer to an international hire.
An EOR service provider acts as a legal employer, facilitates salary payments, and manages other statutory requirements such as health insurance, payroll taxes, and employee benefits, ensuring compliance with local tax laws and regulations.
This allows organizations to focus on collaborating with the employees in Jordan for operational tasks, with the knowledge that they have a cost-effective solution to support their global payroll & HR requirements as they continue their global expansion.
Neeyamo, using its Cloud-based HR and Payroll solutions, strives to provide its customers with a seamless employee management experience and offers global compliance in payroll and EOR aspects with our Global Payroll Technology Stack.
HR Mandates and Practices
In Jordan, The minimum wage is JOD 260.000 per month.
Employees shall be entitled to overtime pay if the daily working time exceeds 8 hours per day and 48 hours per week.
An employee would also be entitled to overtime pay for the following purposes where overtime work is considered mandatory:
Performing the annual inventory works of the establishment, preparing the balance sheet, and the final accounts provided that such overtime work is performed for a period not exceeding 30 days in a year while the actual working hours shall not exceed 10 hours per day.
To prevent damage to the goods, avoiding exposing them to any other material is essential. This helps to mitigate the risks associated with technical work or any other activities involved in receiving, delivering, or transferring specific materials.
However, employees undertaking the tasks of general supervision or management in any establishment and who work in some cases outside the establishment or whose work nature entails traveling inside Jordan or abroad are not subject to the overtime mentioned above work limitations.
Pay – An employee who works overtime is entitled to a remuneration that is not less than 125% of the normal wage.
Data Retention Policy
Jordan does not specify how long records must be kept.
Generally, taxpayers must maintain books and records in case they are subject to inspection by tax authorities.
Employers in Jordan must maintain records regarding compensation and benefits provided to employees.
Hiring and Onboarding Requirements
There are two types of workers you may hire: Locals and ex-pats (foreigners with competence).
Before beginning to work in Jordan, foreign people should pay more attention to their visas, work permits, and other criteria.
If you want to hire workers in Jordan, you may publish on your website or on portals for hiring businesses there, focusing on websites relevant to your sector. You may also advertise jobs for recruiting Jordanian labor on employment sites like Bayt, Naukri, and Monster Gulf.
Being familiar with the country's employment regulations and compliances might provide difficulties for a firm wanting to enter the Jordanian market and could save you valuable time.
Copy of valid passport
Academic education details
Details of professional qualifications
A valid medical checkup certificate from one of the health centers that is approved by the Ministry of Health
Labor law gives both parties the right to agree on a probation period, which should not exceed three months (ninety days.) This period is not assumed in the employment contract. Both parties should agree on it in writing.
The following public holidays are observed in Jordan:
- Jan 1: New Year's Day
- Apr. 9: Easter Sunday
- Apr. 10: Easter Monday
- Apr. 21 to Apr. 23: Eid al-Fitr
- May 1: Labour Day
- June 27 to July 1: Eid Al-Adha Holiday
- Jul 19: Islamic New Year
- Jul 20: Prophet Muhammad's Birthday
- Dec 25: Christmas Day
Every worker is entitled to fourteen days a year of sick leave with full pay based on a report by the medical practitioner approved by the establishment. Sick leave may be extended to an additional fourteen days with full pay if the worker is hospitalized and with half pay if the worker is not hospitalized but provides a report from a medical commission approved by the establishment.
Women workers are entitled to maternity leave with full pay for ten weeks, including rest before and after delivery. Leave after delivery shall be at least six weeks long, and employment before the expiry of such a period shall be prohibited.
After the maternity leave period expires, every woman worker is entitled, within one year of delivery, to take time off with pay to nurse her newborn baby, provided that total time off does not exceed one hour a day.
An employee is entitled to paid leave for three days after the child's birth.
Annual Leave: Every worker is entitled to annual leave with full pay for fourteen days for every year of employment. This leave is extended to twenty-one days when the same employer has employed the worker for five consecutive years.
An employee is entitled to paid leave for 14 days each year in any of the following cases:
*If an employee has joined a course for labor education approved by the Ministry upon the employer's candidacy or the establishment's manager in cooperation with the concerned association.
*For pilgrimage, if an employee has been in the employer's service for at least five consecutive years. Such leave shall only be granted once during the employee's service period.
If a working couple in Jordan relocates outside their current governorate or moves to work in a foreign country, they are entitled to take unpaid leave for a maximum period of two years.
The employee may get unpaid leave of 4 months if the employee joins an approved university, institute, or college to study.
In case of an indefinite employment contract, one-month advance notice must be served to the employee to terminate the contract. However, in some cases, there is no need for prior notice to terminate a contract.
Those circumstances are as follows:
- Assumption of fake identity and submission of fake certificates
- Failure to fulfill contractual obligations
- Material damage to the employer
- Failure to adhere to internal regulations despite two warnings
- Absence from work for more than twenty days without any cause or prior notice
- Disclosure of work secrets
- Being guilty of criminal offenses or immoral conduct
- Being intoxicated or under the influence of drugs at work
- Insulting or striking at fellow employees and authority
For each year of service, the employee is entitled to severance compensation equal to half a month's salary (or 50% of the total income), computed using the last wage the employee received and a minimum of two months' salary.
Data Retention Policy
Employee Personnel Records (after termination) - 3 years
Time Cards For Hourly Employees - 3 years
Accident Report, Claims - 6 years
Payroll records - 6 years
Time books - 6 years
The employer who hires a person with the relevant expertise is responsible for securing a work visa. Both qualified and unskilled professionals who land a job in Jordan may be eligible for this visa.
The Jordan work visa requirements that the employer has to submit are:
- Passport details of the employee with a minimum validity of six months
- Completed work visa application form
- Professional experience
- Appointment letter
- Salary and remuneration details
- Academic education details
- Documents facilitating work visa
- Details of professional qualifications
Employee Background Checks
Legal and Background Checks
Employers may conduct background checks on prospective employees only after a conditional offer of employment has been made and accepted by the prospective employee. A best practice is to have the prospective employee sign and accept the conditional job offer letter along with written Authorization to Conduct a Background Check. This provides evidence of the job offer, the employee's acceptance, and the authorization for the background check.
Verification services are mentioned below for obtaining a background check:
Requirements: Name, date of birth, full address, release
The criminal record search in Jordan is conducted through the local level court based on the jurisdiction of the city provided. This search will report back felony-level convictions in the past seven years. The report may include case type, file date, file location, case number, charge information, disposition information, and sentencing information.
Requirements: Name, date of birth, address, release
This search is conducted at the local level through the court based on the jurisdiction of the city provided. The report may include case type, file date, case number, name of the court where the case was filed, plaintiff, defendant, and disposition if a case can be located.
Education degree verification:
Requirements: Name, date of birth, school name, degree, major, dates of attendance, city of the school, degree copy, and release form
An applicant inflating their educational accomplishments is one of the most common occurrences on an applicant's resume or application.
Requirements: Name, date of birth, employer name and contact information, dates of employment, position held, and release form
Past employment verification is recommended for all employees.
Professional Reference check:
Requirements: Applicant name and date of birth, reference's relationship, contact name and contact information (including phone number and email address)
Last updated on September 13, 2023
If you have any queries or suggestions, reach out to us at firstname.lastname@example.org