Employer of Record in Jordan

How an Employer of Record Works in Jordan

Foreign companies can use an Employer of Record (EOR) in Jordan to hire in the country without setting up local entities. The EOR becomes the employer, taking care of hiring, onboarding, and managing the employment relationship, while the foreign employer focuses on day-to-day operations.

Rivermate offers EOR services in Jordan, working with experienced in-country partners to make it quick and easy to hire in the country.

Jordan labor market: At a glance

The hiring market
Greatest hiring activity:	Amman
Hiring timelines:	Two weeks to one month for local hires; up to two months for foreign nationals.
In-demand sectors:	Tech and IT, finance, sales.
Sectors with skills shortages:	Highly specialized roles.

The salary market
Employer tax contributions:	14.25% of monthly pay; 1% extra for hazardous roles.
Minimum wage:	JOD 290 per month.
Average gross annual salary:	JOD 7,872 (JOD 656 per month).
Income tax brackets:	The following brackets apply to taxable income after the JOD 9,000 personal exemption and JOD 9,000 exemption for qualifying dependents: Up to JOD 5,000: 5% JOD 5,001–10,000: 10% JOD 10,001–15,000: 15% JOD 15,001–20,000: 20% JOD 20,001–1,000,000: 25% Over JOD 1,000,000, 30%

What it costs to hire an employee in Jordan

Employer contributions

The total employer contribution is 14.25%:

• 11% for old age, death, and disability
• 2% for work injuries
• 0.75% for maternity
• 0.5% for unemployment

The employee pays 7.5%, of which 6.5% goes toward old age, death, and disability, and 1% goes toward unemployment. The total contribution across employer and employee is 21.75%, which is calculated on monthly salary and capped at JOD 3,733.

This applies to fixed monthly pay, including basic salary and fixed allowances like transport. It doesn’t apply to variable pay, such as overtime. Employers also pay an additional 1% contribution for dangerous roles.

Salary

Pay must be in the Jordanian dinar (JOD), and the average monthly wage is JOD 656 while the minimum wage is JOD 290. According to our in-country partner, Saudi Arabia pays more and Egypt pays less for the same role, so Jordan sits between the two.

Income tax

Income tax must be withheld by the employer. No tax is due on the first JOD 9,000 per year, and employees with qualifying spouses and dependents get an additional exemption of JOD 9,000 per year. The income tax brackets range from 5% on income up to JOD 5,000 to 30% on income over JOD 1,000,000.

For taxable income over JOD 200,000, employees pay an additional 1% tax, often referred to as the national contribution tax.

Benefits

Bonuses are not compulsory in Jordan and depend on the role. Health insurance is widely expected, but not mandatory, and others include transport, meal, and housing allowances. Performance bonuses are common, too.

Notice and severance

Indefinite contracts require a month’s notice in Jordan. Where dismissal is considered arbitrary, the employee might be entitled to half a month’s pay for every year of service, with a minimum of two months’ wages.

Work permits

Employers must pay for work permits for foreign hires. The standard permit is about JOD 300–425 per year, depending on nationality and sector, while specialized-skills permits cost about JOD 1,500 per year.

Jordan employer cost calculator

Use our calculator to get a quick idea of your total employment costs in Jordan.

What hiring in Jordan really looks like

Market condition	What an employer needs to know
Talent availability	Young and educated workforce, with most talent in Amman, Zarqa, and Irbid.
Employee turnover	Turnover is high because skilled workers can easily find similar roles.
Labor law enforcement	Enforcement is strict, with the law favoring the employee.
Remote hiring	Remote work is common, and the Flexible Work Regulation has been in place since 2024.

Jordan is a good location for hiring skilled talent at lower costs than some other countries in the region. The workforce is young and educated, and skilled talent is available in sectors like sales and development.

Most talent is found in Amman, Irbid, and Zarqa, especially for tech, finance, and corporate roles. Irbid has universities and a strong tech scene, while Aqaba is known as the logistics and tourism hub.

Graduates from the University of Jordan and Yarmouk University mean there’s talent available in engineering, IT, and business, but highly specialized roles often face shortages.

Jordan has a mix of local talent and foreign workers from countries like Egypt, Bangladesh, and Syria. Domestic workers from Ethiopia and the Philippines are common.

Recruitment is straightforward, but be aware of “wasta,” the term for personal networks. This is still an important factor when finding roles in some sectors in Jordan.

Remote work is common in Jordan. The labor law applies to anyone working remotely, and there’s also the Flexible Work Regulation that came into effect in 2024.

Hiring generally takes two weeks to a month, including screening. Some positions can be filled much sooner, even in as little as a day. Foreign nationals take longer. At the time of writing, hiring foreign nationals has been suspended, with a few exceptions, such as domestic workers and roles that require specialist skills.

Visas can cause problems, mainly because of the employee's nationality. Our local partner gets verbal approval from the Ministry of Labor before starting the process, and quotas apply. Hiring blue-collar workers is very difficult, but it’s easier to hire mid-level and skilled employees. The employer must also show that no qualified Jordanians are available. The work permit process can take several weeks up to a couple of months.

Country-specific problem that employers must know about

High turnover is very common in Jordan, and it’s one of the main problems when hiring here. Demand for skilled staff is high, and skilled employees can easily find work elsewhere. As a result, competition is intense.

Candidates want stable employment and good pay, but beyond that, our expert partner in Jordan recommends certain practices to retain talent. This could include paying an advance of the employee’s salary mid-month, always paying on time at month-end, registering all employees with social security (this is a legal requirement, but informal work is common), and sometimes offering private medical insurance.

You could also offer good training, allowances, and performance bonuses. Competitive benefits are especially important in sectors like tech and in large companies.

Important compliance issues employers need to know about

Strict scrutiny by authorities

Jordan authorities are strict, according to our in-country partner, and they often visit offices to conduct checks, especially for foreign companies. A misunderstanding with a single employee could trigger an investigation, so it’s important to do everything by the book.

Terminations

Terminating a role can be complicated. If a fixed-term contract ends early without just cause, you must pay for the remaining period unless you have a mutual agreement not to. If it’s not renewed, that’s not a problem, but if the employee keeps working, it becomes an indefinite contract.

If the employee is on an indefinite contract, you must give them one month’s notice by formal letter or email, and they must receive full pay. However, notice on its own doesn’t make a dismissal unlawful. When reducing staff for technical or economic reasons, you must notify the Ministry of Labour in writing and provide your reasons before you take action. After which a committee will review the measures.

If you dismiss the employee immediately without justification, they may be entitled to half a month’s pay for each year of service, with a minimum of two months’ wages, and this is paid in addition to notice pay and other entitlements.

Probation and contracts

Contracts must be in Arabic in Jordan, and at least two copies must be made. Fixed-term contracts can be no more than five years, and it’s important to state that any bonuses are at the employer’s discretion so they do not become expected. Probation is permitted, and the maximum fixed period is three months, which can’t be extended. During probation, the employer can end the employment agreement without notice.

Social security

Registering staff with the Social Security Corporation is mandatory, and several penalties apply for noncompliance. For example, late payments are charged 1% monthly interest, and late data results in a fine of 1% of contributions for each month the data is late. Employer contributions must be paid by the 15th of the following month.

Working hours

Employees can work a maximum of eight hours per day and 48 hours per week, with overtime paid extra. Overtime has a premium of 25% on working days and 50% on rest days and holidays. Keep careful working-time records in case you receive an inspection.

How Rivermate can help you stay compliant when hiring in Jordan

When hiring in Jordan, our experts know exactly how to apply local labor laws while handling the employment relationship. You can focus on your business while we handle the rest.

Learn more about EOR services

Benefits of hiring employees through an EOR in Jordan

Hiring in Jordan can be challenging. Rules can change suddenly and are often difficult to follow. Setting up an entity in the country means hiring a lawyer and auditor, renting an office, paying for utilities, and more. In short, forming a local entity is a burden that many companies could do without. Closing can also be challenging, and you need to get clearances from the Ministry of Finance, the Ministry of Labor, and the Social Security Department.

If time is of the essence, an EOR in Jordan can make the process much faster. You could hire in as little as two weeks, compared with up to 10 weeks to set up an entity.

On top of that, when hiring in Jordan, you have to navigate strict labor laws that are focused on the employee. Audits, tax, and compliance can be complex, but with an EOR, you don’t have to worry about it.

In Jordan, it’s important to have good relations with officials at the Ministry of Labor and the tax department. An established local provider already has those in place.

It can be complicated to deal with seasonal work or changing workforce needs. If you only hire someone for a season, they could take legal action when the employment ends. But with an EOR, you can move employees to different assignments, which is useful when demand fluctuates. That being said, an EOR must still follow the law, and while reassigning staff helps to manage seasonal demand, it doesn’t remove the termination rights of employees.

Foreign hires can be another difficult area, where dealing with visas and sponsorship is not always straightforward. A local EOR with a large workforce and strong process knowledge can make this much easier.

Many large companies already have their own entities in the country but still use our expert partner's services, showing how important it is to have a knowledgeable local expert to support your employment needs.

Ready to hire in Jordan?

Hiring in Jordan doesn't stop once you find the right candidate. At Rivermate, we make the process simple for foreign companies, managing everything from payroll to taxes, so you can hire in Jordan with confidence.

Talk to a Jordan Hiring Expert

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