Employer Of Record In Jordan

Skuad’s Employer of Record Jordan makes it easy for you to expand your business in Jordan without any entity setup. As an automated, united, and efficient global HR platform, Skuad’s EOR solution helps you manage your remote teams along with their payrolls, benefits, onboarding, etc., in the most efficient manner. With an international network in over 150 countries, Skuad can assist you in accomplishing your dreams of global expansion with ease.

Jordan At A Glance

Population: 11.4 million

Currency: Jordanian Dinar

Capital city: Amman

Languages Spoken: Arabic, English

GDP: USD 48.65 Billion

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Employment In Jordan

The employment and Jordan labor laws are applicable to citizens of the country and foreign nationals. Here are the essential aspects to comprehend employment in Jordan that must be kept in mind while planning to expand your business in Jordan.

For setting up any business entity in Jordan, it is necessary to comply with Jordan’s employment laws. These regulations are standard and in line with the regulations of other countries, even though they appear to be a little complex. The best way to manage the challenges concerning employment in Jordan is to collaborate or partner with a local payroll provider who possesses thorough knowledge of Jordan's laws for foreign workers and local workers.

Here are some of the benefits and entitlements for employees in Jordan:

Entitlements	Explanation
Statutory Working Hours	8 hours per day (48 hours per week). Exceptions - Persons in charge of supervision Management Workers traveling abroad and inside the kingdom.
Overtime eligibility	After the employee’s approval, the employer could increase working hours daily or weekly by providing overtime at a wage not less than 125% of his/her standard wage.
Paid Public Holidays	The public holidays in Jordan are as follows- New Year’s Day (January 1) Labour Day (May 1) Eid Ul-Fitr (May 12) Independence Day (May 25) Eid Al-Adha (July 19) Hijri New Year (August 9) Birthday of Prophet Muhammed (October 18) Christmas Day (December 25)
Holiday pay	Any work done by an employee on religious festivals, public holidays, or weekly holidays entitles him to receive overtime pay of not less than 150% of his standard wage. Friday is usually observed by private businesses as a weekend holiday.
Medical leave	There are several employee health benefits Jordan provides. They are as follows: Every employee is entitled to 14 days of sick leave in a year, which is fully paid and granted based on a report by an approved, registered medical practitioner. After the employee has worked for five successive years for an employer, he/she is entitled to 21 days of paid leave. Religious holidays and weekly rest days are not counted as annual leave unless they occur naturally in their course.
Maternity leave	Maternity leave granted to a female employee in Jordan includes paid time off for 10 weeks before and after delivery. The after-delivery leave cannot be less than six weeks before its expiration. Female employees also get an hour off every day for breastfeeding their child during the 1st year after the delivery. Female employees are also entitled to unpaid leave for a year after the birth without any termination or any notice of termination while they are on maternity leave, after which she would be reinstated unless she was gainfully employed during that period.
Annual Leave Accrual Entitlement	An employee who has worked for less than five successive years for an employer is entitled to 14 days of paid leave for every year of his employment. Employees who have worked for more than five successive years for an employer get an extended paid leave of 21 days every year.
Accrued leave at termination	If a worker’s employment is terminated due to any reason before availing their leave, they are entitled to receive remuneration for the remaining leave days. The leave is usually paid for 14 days a year.
Employee protection and anti-discrimination rights	If a worker’s employment is terminated due to any reason before availing their leave, they are entitled to receive remuneration for the remaining leave days. The law that governs the relationship between employees and employers in Jordan is the Jordan Labour Law No. (8) of 1996. The law prevents employment discrimination against employees based on gender. If the wage rates differ based on gender, the employer is liable to pay a penalty ranging from JOD 500 and JOD 1000. The recent amendment in this law impacts over 40 articles of the Labour law.
Confidentiality of Personal Information	There is no data protection law as of now in Jordan.

The Jordanian labor laws have many more sections that lay down rules about employer and employee relationships. To ensure that your hiring process is compliant with the obligatory laws, speak to Skuad’s experts today to learn more about employment in Jordan.

Contractors Vs. Full-Time Employees

Under the employment contract law in Jordan, there are 2 types of contracts:

Fixed-term
Indefinite

A fixed-term contract has a maximum period of five years, while an indefinite one is self-explanatory.

Hiring a contractor in Jordan means that you are hiring a worker who operates independently, manages their entity, serves based on either a contract or a project, and could even work for multiple clients or companies. It means they could self-pay their taxes and are not a part of the employer’s payroll.

However, hiring a full-time employee means you hire a worker through an employment agreement in Jordan, and the individual works full-time for one company and receives mandatory employment benefits. It means they are a part of the employer’s payroll. Full-time employees are hired when they are expected to meet long-term goals and need to be closely supervised when the business needs timely reporting. Such employees enjoy the benefits like commitment to the company’s vision, loyalty, and contribution to the company’s growth.

The employment contracts in Jordan usually come into play when the cost is low, such as payment of taxes, administration, and benefits, and when employers desire advantages like flexibility, specialized skills, and less propensity for lawsuits.

Learn more about hiring contractual workers and full-time employees in Jordan. To get started on your Jordanian expansion journey, you can book a demo with us here.

Hiring In Jordan

The 2 categories of employees that you can hire are:

Locals
Expats (foreign individuals holding expertise).

Foreign nationals must pay more attention to checking their visas, work permits, and other requirements before taking up employment in Jordan.

If you wish to hire employees in Jordan, you can either post on your website or on portals of hiring companies in Jordan with specific emphasis on your industry-related websites. Additionally, you can post on job portals like Bayt, Naukri, and Monster Gulf for hiring workers in Jordan.

As a business looking to expand into the Jordanian market, not being well-versed with the employment laws and compliances of the country could pose several challenges and can cost you crucial time during the process.

Hiring contractors or fixed-term employees is dependent on the organization’s priorities and business strategy. With an efficient team of professionals under one roof and acting as your Employment of Record, Skuad eases your process of hiring employees in Jordan. From assisting in getting your work started in Jordan to hiring, recruiting ideal talent, and onboarding, Skuad is your go-to industry partner. Experts at Skuad will take care of your requirements with due diligence, be it hiring full-time or contractual employees.

Learn more here.

Probation & Termination

Probation and termination are two crucial factors governed by the Labor Laws of Jordan. The probationary period in Jordan is in place to grant aid to employees and avoid exploitation.

The labor laws give the right to both parties to mutually agree on a probation period. Both parties have to agree on the probation period in writing; this period is crucial to test the competencies and skills of a worker and for a worker to decide whether he accepts the work expected of him. However, the standard probation period in Jordan should not exceed three months or ninety days under any circumstances.

Termination of service

Termination of Employment contract

Section 21 of the Jordan Labor Code deals with termination of employment. According to this section, a contract is considered terminated if:

Both parties are in agreement to terminate it.
The contract has expired, or the work is completed.
Death, or if the worker is incapable of performing the work due to disability or disease, provided this is certified by a medical authority.

In case of an indefinite employment contract, one-month advance notice must be served to the employee to terminate the contract. However, there is no need for prior notice for the termination of a contract in some cases. 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.

EOR Solution In Jordan

Employer of Record (EOR) Jordan Solutions have made the expansion of many businesses to Jordan a reality. By undertaking an employer of record service, you can ensure the smooth rolling and processing of your payroll, and compliance with other employment responsibilities, all without any entity setup.

With expertise in handling and management of these complex employment processes, Skuad as an Employer of Record partner in Jordan can help growing businesses expand into the country. Our unified employment platform ensures seamless management of monthly payroll, work permits, contracts, and taxation in Jordan for employees.

Have some questions? Talk to Skuad’s experts here.

General Employer Of Record Service Terms

Particulars	Explanation
Can Skuad sponsor a work visa in Jordan	Yes
Work permit process	The first step to getting a work permit in Jordan is to secure a job. The Jordan work permit for foreigners (expats) is only granted when there is a valid job. Hence, gaining a Jordan work permit without a job offer is a relatively difficult task. Next, you will need to get approval from the Ministry of Interior. The Ministry grants this approval by verifying all the facts, your documents, and your authenticity. All the required documents are submitted, and applicable fees are paid.
Passport Submission	The original passport must be present during the meeting.
Work permit validity	The work permit is applicable for 1 year, and this can be renewed.
Work Permit Process for Different Countries	The basic process of gaining a work permit is common for all nationalities.
When can the employee travel to Jordan?	Employees can travel to Jordan when they have both a work permit and residence permit in the country, apart from a valid visa approved by the Ministry of Interior.
What’s the cost of a business visa?	USD 170
Duration of business visa processing	Usually, 4 to 5 working days.
Termination of work permit	If the employer wishes to renew the work permit of their employee, they have to inform the Directorate one month prior to its expiration for renewal.
Special requirements for work permit cancellation	If the employer does not wish to renew the permit, the same must be informed to the Directorate to eliminate the worker’s name from the establishment records.

Outsourcing Employment Through An Employer of Record

If you wish to expand your business into Jordan, you need to first decide whether you wish to build an in-house team or choose an EOR to manage payroll and employee services; this would result in efficient processing of your operations.

Leading EORs like Skuad can take care of your company’s operations, leaving you free to focus on your core business functions. Contact us here to learn more.

Types Of Visas In Jordan

If you wish to work in Jordan, you must obtain the necessary permits and Jordan work visas before deciding to expand the business into the country.

Types of Visas	Explanation
Business/Investment Visa	It is best suited for those companies and entrepreneurs who wish to begin their new business in Jordan. To obtain a business/investment visa, you will need to submit the following documents: A valid passport A completed business visa application Passport copy Blank visa pages in the passport Documents reflecting your financial status, e.g., salary slips and bank statements Business reference letters Documents showing accommodation booking Proof of flight reservation Applicable Jordan business visa fee.
Employment Visa	Obtaining a work visa is the responsibility of the employer who hires an individual for the desired skillset. This visa can be granted to both skilled and unskilled professionals who get a job in Jordan. 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.
Single entry Visa	The single-entry visa is one of the different types of work visas in Jordan and is valid for two months.
Double-entry Visa	The double-entry visa is valid for three months.
Multiple entry visa	This type of work visa is valid for six months.

Work Permits

The core purpose of these work permits is to enable an individual to enter foreign land for work. As a global platform, Skuad is the most trusted partner to get easy access to global talent by bridging the talent gap in over 150 countries.

Particulars	Explanation
Can Skuad sponsor a work visa in Jordan	Yes
Work permit process	The first step to getting a work permit in Jordan is to secure a job. The Jordan work permit for foreigners (expats) is only granted when there is a valid job. Hence, gaining a Jordan work permit without a job offer is a relatively difficult task. Next, you will need to get approval from the Ministry of Interior. The Ministry grants this approval by verifying all the facts, your documents, and your authenticity. All the required documents are submitted, and applicable fees are paid.
Passport Submission	The original passport must be present during the meeting.
Work permit validity	The work permit is applicable for 1 year, and this can be renewed.
Work Permit Process for Different Countries	The basic process of gaining a work permit is common for all nationalities.
When can the employee travel to Jordan?	Employees can travel to Jordan when they have both a work permit and residence permit in the country, apart from a valid visa approved by the Ministry of Interior.
What’s the cost of a business visa?	USD 170
Duration of business visa processing	Usually, 4 to 5 working days.
Termination of work permit	If the employer wishes to renew the work permit of their employee, they have to inform the Directorate one month prior to its expiration for renewal.
Special requirements for work permit cancellation	If the employer does not wish to renew the permit, the same must be informed to the Directorate to eliminate the worker’s name from the establishment records.

We also sponsor work permits in Jordan for foreign workers and take care of the entire work visa process on your behalf.

Partnering with an EOR like Skuad is advantageous as the EOR can handle the responsibility of obtaining work permits on your behalf while you focus on the expansion of your business globally. Talk to our experts today to learn more.

Payroll & Taxes In Jordan

The basic knowledge you must possess while setting up payroll and taxes in Jordan is the country's rules and regulations. While setting up your payroll, you must first decide whether you wish to hire local employees or foreign nationals (expats).

Since setting up a foreign company in another country is not an easy task, it is important to strictly adhere to the local tax laws, such as payment of income tax, Jordan payroll taxes, security costs, business tax, Jordan employer payroll taxes, etc.

The two ways in which you can manage this is:

By building an in-house team to handle all such issues.
By outsourcing payroll in Jordan.

Skuad EOR solution helps manage payroll transactions with expertise. With its unified employment platform, Skuad can help in payroll management for any business that is planning to expand into Jordan.

Taxes In Jordan

Tax

Explanation

Income tax rates

Monthly Taxable Income.
The income tax rates are applied progressively in Jordan.

Taxable Income (JOD)	PIT Rate (%)
The first 5000	5
The second 5000	10
The third 5000	15
The fourth 5000	20
Over 20,000 and up to 1,00,000	25
Balance	30

An amount of annual taxable income exceeding JOD 200,000 is subjected to 1% as a national contribution tax.

Tax returns

Yes, tax returns must be filed 4 months after the end of the taxation period.
For married taxpayers, a joint tax declaration is an option.

Financial year-end date

31st December.

Corporate tax

The corporate tax rates in Jordan are as follows:

Banks- 35%
Telecommunication, financial intermediation companies, raw materials generating companies, mining companies, insurance, and reinsurance companies – 24%
Other companies – 20%

For foreign branches of Jordanian resident corporations: 10% fixed corporate tax.

Withholding Taxes (For Non-residents)

Dividends: None
Interest: 10%
Royalties: 10%
Technical Services: 10%

Payroll tax

The employer withholds an individual’s income taxes from his monthly compensation ranging from 5% to 30%.

Sales Tax

The standard sales tax rate is fixed at 16%. But the sales tax may be reduced to 0%, 4%, 5%, and 10%.
A sales tax return is filed every two months in Jordan with clearance of all the dues at that time.

Employer’s social security and statutory contributions

The social contribution rates are:

Employer’s contribution: 14.25%
Employee’s contribution: 7.5%

Public Pension

The three separate tiers of the Public PAYG Pension system in Jordan govern the public pension system.

Health Insurance

A monthly deduction from the employee’s salary gives the employee access to public healthcare.

Have queries about the taxation policies of Jordan? Click here to talk to our experts.

Incorporation: How To Set Up A Subsidiary In Jordan

For incorporating a holding company in Jordan or a subsidiary in Jordan, the requirements are:

A copy of the parent company’s Articles & Memorandum of Association.
List of director members, management board, and shareholders.
Officially approved documents for business from local authorities.
A copy of the Power of Attorney authorizing an individual residing in the country to undertake activities.
The financial statement of the last fiscal year, audited by an auditor.
Duly filled application form.
All the documents are authorized and legalized by the Embassy.

If you want to establish a Jordanian subsidiary on your own, you'll need a thorough grasp of the country's legislation pertaining to the incorporation of subsidiaries. In addition, you'll need to budget for some of the procedures and be prepared to bear these expenses.

Before you think of starting a subsidiary on your own, consider partnering with an EOR to mitigate such challenges. Working with Skuad’s Jordan EOR will help you avoid these costs and make the process more straightforward. To discover more about forming a Jordanian subsidiary by partnering with us, contact Skuad now.

PEO vs. EOR

A Professional Employer Organisation (PEO) is a company that associates with both small and medium-scale companies to offer HR services. When a company works with a PEO, the HR department is outsourced to provide expert services at affordable charges.

If a company doesn't prefer to outsource the HR function, EOR services are another option to consider. In global EOR services, the EOR is the legal employer of the workers, whereas, with a PEO, the company is in a co-employment relationship with the PEO.

For working with a PEO as a company, you will need to first establish your legal presence wherever you have your employees. But if you are established beyond boundaries, you can hire employees legally through EOR services. There are no fixed criteria to decide; the choice depends on your business requirements.

Skuad offers both types of services. Talk to us and tell us your requirements and let us help you choose between our EOR solution and PEO services.

Book a demo here.

Conclusion

Talent has no boundaries, and neither should a business. Therefore, the Employer of Record (EOR) services are what you need to go from local to global. Talk to Skuad’s experts and start hiring from anywhere.

FAQs

1) What is an employer of record in Jordan?

An Employer of Record (EOR) in Jordan serves as the legal employer for employees on behalf of a client company. An EOR, like Skuad, handles all employment-related tasks such as payroll, taxes, compliance with local labor laws, and employee benefits. This allows companies to hire in Jordan without setting up a local entity.

2) What are the employment laws in Jordan?

Employment laws in Jordan are governed by the Jordanian Labor Law No. 8 of 1996 and its amendments. The workweek is 48 hours, typically spread over six days. Employees receive overtime pay for working extra hours. Employees are also entitled to annual, sick, and maternity leave. The minimum wage is set by the government and periodically reviewed.

3) What is a fixed term contract in Jordan?

A fixed-term contract in Jordan is an employment agreement that lasts till the completion of a specific task or for a specified period. These contracts, usually at most five years, include the start and end dates and must be in writing. If the contract is renewed consecutively, it might be considered an indefinite-term contract under certain conditions.

4) What is the overtime rate in Jordan?

In Jordan, the overtime rate is 125% of the regular hourly wage for any hours worked beyond the standard 48-hour workweek. The rate is 150% of the regular hourly wage for overtime worked on public holidays and weekends.

5) What is employer contribution in Jordan?

Employer contributions in Jordan primarily refer to social security contributions. Employers are required to contribute 14.25% of the employee's gross salary to the Social Security Corporation, which covers benefits such as retirement pensions, disability, and unemployment insurance.

6) What is the minimum wage in Jordan per hour?

For Jordanian workers, the minimum wage is set at JOD 260 per month, and for non-Jordanian workers, it is JOD 230 per month. However, the minimum wage rates are subject to periodic reviews by the government. To calculate cost of employment in Jordan, click here.

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Employer Of Record In Jordan