Employer of Record in Jordan: A Complete Guide for 2026

Introduction

Jordan is one of the more accessible hiring markets in the Middle East for foreign employers.

For companies expanding into the region, Jordan offers the talent without the political volatility or restrictive labour rules found in a few neighbouring markets.

However, hiring in Jordan requires foreign employers to navigate Labour Law No. 8 of 1996 and its recent amendments, Ministry of Labour work permits, Public Security Directorate residence permits, Social Security Corporation contributions, ISTD (Income and sales tax department) payroll filings, and Personal Data Protection Law compliance.

All these should be administered through separate authorities with their own filing cadences. This is where an Employer of Record (EOR) in Jordan can help.

An EOR legally employs workers on your behalf, so you can hire, onboard, and pay talent in Jordan without setting up a local entity. The EOR takes on payroll, employment contracts, statutory contributions, and ongoing compliance as the legal employer of record.

This guide covers the key aspects of hiring in Jordan, including employment laws, contractor classification, work permits, visas, payroll and taxes, incorporation, and how an EOR compares to setting up a subsidiary, and shows how Skuad supports each step.

Jordan at a glance

Population: 11.49 million

Currency: Jordanian dinar (JOD)

Capital: Amman

Languages: Arabic, English

GDP: USD 53.35 Billion

Employment in Jordan

Jordan's employment framework is set by Labour Law No. (8) of 1996 and its amendments, administered by the Ministry of Labour.

The law applies to Jordanian citizens and foreign nationals alike. Law No. 14/2019 introduced wage discrimination penalties and paternity leave, Law No. 10/2023 covered migrant labour and the sexual harassment definition, and the 2024 amendments approved by Parliament in March 2025 extended sick and maternity entitlements and added bereavement leave.

Jordan's employment compliance, from Article 53 wage discrimination fines to PDPL(Personal Data Protection Law) breach exposure to Social Security Corporation registration and maternity insurance funding, carries real penalty risk for foreign employers.

Skuad helps with local employment laws as your legal employer in Jordan, so your team can hire without setting up an entity or building in-country HR infrastructure.

Book a demo to see how Skuad supports Jordan employment compliance.

Contractors vs. Full-time employees

Jordan recognises two types of employment contracts under the Labour Law. It is fixed-term and indefinite. Fixed-term contracts end automatically on the expiry date. Continued performance past the expiry currently converts the contract to indefinite.

The 2024 amendments approved by Parliament in March 2025 change this rule so that continued performance renews the fixed-term contract for the same length, rather than converting it to indefinite.

Indefinite contracts continue until either party terminates with one month's written notice, or one of the statutory grounds under Articles 28 or 29 applies (resignation for cause, misconduct dismissal, redundancy).

Independent contractors register their business with the Ministry of Industry, Trade, and Supply, obtain a tax identification number from the Ministry of Finance, and pay their own income tax on professional or business income.

They don't appear on the engaging company's payroll, and the company doesn't pay Social Security Corporation contributions for them.

Full-time employees get the Labour Law's full protections, such as a written employment contract, statutory leave, end-of-service compensation, and a one-month termination notice. Social Security Corporation contributions are 14.25% employer and 7.5% employee.

Misclassification risk

Jordan applies a substance-over-form test under the Labour Law, which defines a worker as someone "subordinate to the employer and at his service" regardless of what the contract calls them.

If a contractor in practice works under your control, uses your equipment, is integrated into your operations, works exclusively or near-exclusively for you, and bears no financial risk, a Jordanian court can reclassify them as an employee.

The reclassified worker can claim back-paid Social Security Corporation contributions, gratuity, statutory leave, and unfair dismissal protections.

The 2024 amendments tightened the rules on secondment and outsourcing, which were previously used to avoid direct employment relationships. The cost of misclassification sits with the engaging company. Skuad supports both hiring models from a single platform:

EOR for full-time employees

• Acts as the legal employer across 160+ countries, so you can hire without setting up a local entity
• Facilitates employment contract generation aligned with local labor laws and statutory requirements
• Supports payroll processing in 70+ currencies with accurate tax withholding and statutory deductions
• Helps administer statutory benefits, paid leave, and termination entitlements in line with local requirements
• Assists with offboarding, including notice periods and severance calculations as required locally

Contractor management

• Helps onboard contractors with locally compliant agreements that reduce misclassification exposure
• Flag worker classification risk before it turns into a compliance issue.
• Supports invoice generation, approval workflows, and payment processing in local currency
• Facilitates multi-currency payouts across 70+ currencies with no manual reconciliation
• Enables contractor records, contracts, and payment history to be tracked from a single dashboard alongside full-time employees

Full-time or contractor? Skuad supports both. See pricing.

Hiring in Jordan

Hiring in Jordan splits cleanly between Jordanian nationals and non-Jordanian workers, with very different paperwork on each side.

Jordanians can be onboarded directly under standard employment contracts. Non-Jordanian workers cannot legally work in Jordan without a Ministry of Labour-approved work permit, typically valid for one year and renewable.

They also need a separate residence permit from the Public Security Directorate. The employer is responsible for initiating both applications.

The Ministry of Labour issues work permits after the employer demonstrates a labour market need, meaning that no Jordanian national is available for the role under the specialised skills framework introduced by Resolution No. 11/2023.

Certain professions are reserved exclusively for Jordanian nationals under the Closed Professions List, including most administrative and clerical roles, basic services, and several skilled trades.

The Ministry of Labour has amended the work permit framework multiple times in 2024-2025, including Resolutions 35/2024, 18/2025, and 51/2025. Foreign hiring procedures change often, so employers should verify the current rules with the Ministry before submitting applications.

The major job platforms for hiring in Jordan:

• Bayt.com
• Akhtaboot
• Tanqeeb
• LinkedIn
• Indeed Jordan

Foreign employers in Jordan face Ministry of Labour work permits with labour market tests, a separate Public Security Directorate residence permit, the Closed Professions List restrictions, and ongoing regulatory updates from the MoL (Ministry of Labour) Resolutions issued multiple times a year.

Probation & termination

Probation cannot exceed three months under Article 35 of the Labour Law, and either party can terminate without notice or severance during this window. Once probation expires and the employee continues working, the contract is treated as an unlimited-term and full termination protections apply.

For an indefinite contract, either party must give one month's written notice to terminate.

Article 28 of the Labour Law lets employers dismiss without notice in specific cases:

• Assumption of a fake identity or submission of fake certificates
• Failure to fulfil contractual obligations
• Material damage to the employer
• Failure to adhere to internal regulations despite two written warnings
• Absence for more than 20 non-consecutive days in a year, or more than 10 consecutive days, without justification
• Disclosure of work-related secrets
• Being convicted by a court of an offence against honour and morals
• Being found drunk or under the influence of narcotics at work
• Insulting, assaulting, or striking the employer, a manager, or fellow employees during work

If a dismissal doesn't fit an Article 28 ground, Jordanian courts typically treat it as arbitrary. Employees have 60 days to file a wrongful dismissal claim, and courts can award two to six months' salary plus payment instead of notice.

Definite contracts terminated early without cause entitle the employee to wages for the remaining contract period.

Under Article 37, employees not enrolled in Social Security receive one month's salary per year of service on termination. Employees enrolled with the SSC (Social Security Corporation) receive their benefits directly from the SSC.

Termination in Jordan is heavily litigated. Foreign employers who miscalculate Article 28 grounds or skip end-of-service compensation end up paying two-to-six-month arbitrary dismissal awards in the Labour Court.

EOR solution in Jordan

An Employer of Record (EOR) lets you hire in Jordan without setting up a local entity. The EOR becomes the legal employer for tax, payroll, and statutory compliance purposes, while your team manages the work day-to-day.

An EOR registered with the Ministry of Labour holds the Employer Licence, which means it can sponsor work permits, take on JOD payroll through the Social Security Corporation, file Income and Sales Tax Department returns, register employees for PDPL compliance, and carry out Article 28 terminations and end-of-service compensation when employment ends.

The Ministry of Labour has temporarily suspended issuing initial work permits to foreign nationals applying from outside Jordan, with exceptions for industrial, agricultural, domestic worker, and highly-skilled professional categories.

Foreign employers planning to hire in Jordan should verify current rules before submitting applications. An EOR with an active Employer Licence in Jordan is generally better positioned to navigate these exceptions than a newly registering foreign entity.

Hiring in Jordan layers Ministry of Labour work permits, Public Security Directorate residence permits, the Closed Professions List, Social Security Corporation contributions at 14.25% employer and 7.5% employee, JOD payroll, PDPL's 24-hour breach notification rule, and frequent MoL Resolution changes.

Each has its own filing authority and penalty exposure. Skuad acts as the legal employer in Jordan, so you can hire and pay your Jordanian and foreign-national employees without registering a local entity, with statutory compliance.

Here's what Skuad supports as your EOR:

• Acts as the legal employer across 160+ countries, so you can hire in Jordan without setting up an entity or obtaining your own Employer Licence
• Facilitates employment contract generation aligned with local labor laws and statutory requirements
• Supports payroll processing in 70+ currencies with accurate tax withholding, social security contributions, and statutory deductions
• Helps administer statutory benefits, paid leave, and termination entitlements in line with local requirements
• Assists with work permit documentation and visa coordination for foreign-national hires across supported markets
• Enables offboarding with notice administration, severance calculation, and final settlement coordination as required locally

Book a demo to see how Skuad supports your first Jordan hire in days.

Types of visas in Jordan

Jordan has several visa categories that foreign employers and their employees may encounter. The right one depends on the purpose of the visit and how long the person needs to stay.

Foreign hires in Jordan need an employer-sponsored work visa, a Ministry of Labour work permit, and a Public Security Directorate residence permit, each with its own documentation, authentication, and renewal cycle.

Skuad assists with work authorization documentation as the legal employer in Jordan, so your foreign hires can be onboarded without your team coordinating three separate filings across two ministries.

Book a demo to see how Skuad supports work visa documentation for your foreign hires in Jordan.

Work permits

Jordan applies different work permit rules depending on the worker's nationality. As per the Ministry of Interior's official list, restricted nationalities require prior approval and follow different fee schedules.

The restricted list includes Afghanistan, Iran, Pakistan, Bangladesh, Iraq, Yemen, and 30+ African countries. Non-restricted nationalities follow the standard process.

Application process

The process is employer-driven and typically runs in this order:

1. Job offer secure: The Jordanian employer (or the EOR acting as legal employer) makes a confirmed offer of employment to the foreign national
2. Labour market test: Employer demonstrates that no qualified Jordanian is available for the role
3. Application submission: The employer files the work permit application with supporting documentation to the Ministry of Labour.
4. MoL review and approval: Authorities review the application and issue the work permit, typically valid for one year
5. Entry to Jordan: The foreign national enters Jordan with the appropriate entry visa
6. Residence permit: After arrival, the employee applies for a residence permit through the Public Security Directorate

Work permit types

Standard work permits run one year and are renewable annually. Resident Work Permits are issued for three years and renewable in three-year periods, designed for longer-term placements where multiple annual renewals would create administrative overhead.

Renewal and cancellation

Renewals should be initiated 1-2 months before expiry to avoid status gaps in the employee's legal status.

Cancellation involves two separate authorities. A Work permit cancellation through the Ministry of Labour, removing the worker's name from the establishment's records, and a Residence permit cancellation through the Ministry of Interior.

Both filings should happen promptly when employment ends. Foreign workers whose permits are cancelled may need to leave Jordan unless another sponsoring employer secures a new permit.

Restricted-nationality rules, the labour market test, the six-step application sequence, and the two-authority cancellation flow all sit with the employer in Jordan. Mistiming a renewal or missing the MoI cancellation step creates real status and penalty exposure.

Payroll & taxes in Jordan

Jordan's tax administration runs through the Income and Sales Tax Department (ISTD). Foreign employers running payroll in Jordan need to manage income tax withholding, Social Security Corporation contributions, sales tax (if applicable), and the corporate national contribution tax, each with its own filing cadence.

Personal income tax (PIT)

Personal income tax rates are progressive as follows:

Annual taxable income exceeding JOD 200,000 is subject to an additional 1% as national contribution tax.

Tax returns and filing

Tax returns are due before the end of the fourth month following the end of the tax period (i.e., by 30 April for the 31 December year-end). Married taxpayers can file a joint declaration. The tax year is the calendar year. The auditor cannot audit a tax declaration after four years from the date of submission.

Corporate income tax (CIT)

Corporate income tax rates vary by sector:

Corporate national contribution tax

The national contribution tax for legal entities varies by industry:

Withholding taxes (WHT)

Sales tax

The standard sales tax rate is 16%, with reduced rates of 4%, 5%, and 10% applying to certain goods and services, and a 0% rate for exempt categories. Sales tax returns are typically filed bi-monthly, with clearance of dues at filing.

Payroll tax and social security

Employers withhold personal income tax from monthly compensation at the progressive rates of 5% to 30% per the PIT (Personal Income Tax) schedule above.

Social Security Corporation contributions are 14.25% employer and 7.5% employee, calculated on monthly salaries and certain allowances. The SSC administers retirement, disability, maternity, work injury, unemployment, and survivor benefits.

Estimate the cost of a Jordan hire

Between PIT withholding of 5-30%, the 14.25% employer SSC contribution, the corporate national contribution tax, and any work permit fees for foreign hires, the true cost of a Jordan employee is meaningfully higher than gross salary alone.

Skuad's employee cost calculator gives you an estimate of the total employer cost for hiring in Jordan, so you can budget and benchmark against other markets before committing to a hire.

Setting up Jordan payroll in-house means opening an ISTD (Income and Sales Tax Department) account, registering with the Social Security Corporation, setting up bi-monthly sales tax filings, and tracking the annual national contribution tax that varies by industry. Each filing sits with a different authority, and missing one creates direct penalty exposure.

Book a demo to see how Skuad supports Jordan payroll and statutory compliance.

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 documents authorized and legalized by the Embassy

Setting up a Jordan subsidiary means registering with the Companies Control Department (CCD), getting tax registration with ISTD, opening Social Security Corporation accounts, securing an Employer Licence from the Ministry of Labour if you plan to hire foreign nationals, and managing ongoing corporate filings, audited financials, and the annual national contribution tax, all before you make your first hire.

For most foreign employers hiring under 20 people in Jordan, an EOR avoids this entirely. Skuad acts as the legal employer in Jordan, so you can hire Jordanian and foreign-national employees in days instead of going through a months-long entity registration process before onboarding anyone.

Book a demo to see how Skuad compares against subsidiary setup in Jordan.

PEO vs. EOR

A Professional Employer Organisation (PEO) is a company that partners with small and medium-sized businesses to provide HR services. The company and the PEO enter a co-employment relationship, where the PEO handles HR functions like payroll, benefits, and compliance, while the company remains the legal employer of the workers.

An Employer of Record (EOR) works differently, the EOR is the legal employer of the workers, taking on full statutory responsibility for tax, payroll, and compliance, while the client company directs the day-to-day work.

The key practical distinction for foreign employers:

A PEO working in a co-employment model requires you to have your own legal entity in the country where the employee sits. The EOR is the legal employer, which means you can hire in Jordan without registering with the Companies Control Department, opening an ISTD account, or securing an Employer Licence with the Ministry of Labour.

For foreign employers without a Jordan entity, that distinction is the decision. Skuad acts as the legal employer in Jordan, so your team can hire Jordanian and foreign national employees without the entity prerequisite.

Book a demo to see how Skuad's EOR compares to setting up a local entity in Jordan.

EOR services in Jordan simplified

Jordan's employment framework follows Labour Law No. 8, and its recent amendments, alongside Ministry of Labour work permits, Public Security Directorate residence permits, Social Security Corporation contributions at 14.25% and 7.5%, ISTD payroll filings, and the Personal Data Protection Law's 24-hour breach notification rule, all from the first hire.

Getting any of these wrong triggers ISTD penalties and Labour Court exposure under the Article 28 framework.

Skuad acts as the legal employer in Jordan, so you can hire your Jordanian and foreign-national employees and meet statutory compliance requirements without registering with the Companies Control Department, the SSC, or the Ministry of Labour.

Across supported markets, the platform covers employment contracts, payroll in 70+ currencies, statutory contributions, immigration, and termination support.

Book a demo to see how Skuad supports hiring in Jordan.

FAQs

1. What is an employer of record in Jordan?

An EOR in Jordan is a third-party legal employer that hires workers on your behalf under Labour Law No. 8 of 1996. It holds the Ministry of Labour Employer Licence and takes on payroll, SSC contributions, and ISTD filings, while you direct the work day-to-day.

2. How much does an employer of record in Jordan cost?

Most EOR providers in Jordan typically charge $199 to $1,200 per employee per month, as either a flat fee or a percentage of gross salary (10-20%). On top, you cover the employee's salary, the 14.25% employer SSC contribution, and work permit fees of JOD 300-1,200 annually for foreign hires.

3. Can a foreign company hire in Jordan without setting up a local entity?

An EOR with an active Ministry of Labour Employer Licence acts as the legal employer in Jordan, so you can hire Jordanian and foreign-national workers without registering with the Companies Control Department or opening SSC accounts of your own.

4. What happens if a contractor in Jordan is misclassified as an employee?

A Jordanian court applies a substance-over-form test and can reclassify the contractor as an employee. The reclassified worker can claim back-paid SSC contributions, end-of-service gratuity, statutory leave, and unfair dismissal protections under Article 28.

5. Is an EOR a better option than setting up a subsidiary in Jordan?

For foreign companies hiring fewer than 20 people, it is a better option. A subsidiary requires CCD registration, ISTD tax setup, SSC accounts, an MoL Employer Licence for foreign hires, and ongoing audited financials. An EOR covers all of that without the entity overhead.

6. How long does it take to onboard an employee in Jordan through an EOR?

For Jordanian nationals, an EOR can typically onboard new hires in 2 to 7 business days. For foreign nationals, the timeline extends to 4-6 weeks due to MoL work permit processing (15-30 business days) and the PSD residence permit filed after arrival.