Rivermate | Jordanië landscape
Rivermate | Jordanië

Voordelen in Jordanië

449 EURper employee/maand

Explore mandatory and optional benefits for employees in Jordanië

Updated on April 22, 2025

Employee benefits and entitlements are a crucial part of attracting and retaining talent in Jordan's evolving job market. Jordanian labor law mandates certain benefits that all employers must provide. Beyond these legal requirements, offering competitive and attractive benefits packages is essential for companies looking to stand out and secure the best employees. Understanding both the mandatory and optional benefits landscape, as well as employee expectations, is key for successful workforce management in Jordan.

Navigating the complexities of employee benefits in Jordan requires a comprehensive approach that addresses legal compliance, cost management, and employee satisfaction. This guide will provide an overview of the mandatory and common voluntary benefits in Jordan, along with practical insights into designing competitive packages that align with local norms and business objectives.

Mandatory Benefits in Jordan

Jordanian labor law stipulates several mandatory benefits and entitlements that employers are legally obligated to provide to their employees. These include:

  • Social Security: Employers and employees both contribute to the Social Security Corporation (SSC), which provides coverage for retirement, disability, work-related injuries, and unemployment.
  • Annual Leave: Employees are entitled to paid annual leave, with the amount varying based on the length of service. Typically, employees receive 14 days of annual leave, increasing to 21 days after five years of continuous service.
  • Public Holidays: Employees are entitled to paid leave for official public holidays recognized in Jordan.
  • Sick Leave: Employees are entitled to paid sick leave, usually for a specified number of days per year, provided they submit a medical certificate.
  • Maternity Leave: Female employees are entitled to maternity leave with pay, usually for a period of 10 weeks.
  • Severance Pay (End-of-Service Indemnity): Employees who are terminated or resign after a certain period of service (usually one year) are entitled to severance pay, calculated based on their length of service and final salary.
  • Overtime Pay: Employees are entitled to overtime pay for any hours worked beyond the standard working hours, as defined by Jordanian labor law.
Benefit Description
Social Security Contributions to the SSC cover retirement, disability, work injuries, and unemployment.
Annual Leave Paid time off, typically 14 days, increasing to 21 days after 5 years.
Public Holidays Paid leave for official public holidays.
Sick Leave Paid time off for illness, requires a medical certificate.
Maternity Leave 10 weeks of paid leave for female employees.
Severance Pay Payment upon termination or resignation after a qualifying period, based on length of service and salary.
Overtime Pay Additional pay for hours worked beyond the standard work week.

Common Optional Benefits

In addition to the mandatory benefits, many employers in Jordan offer optional benefits to attract and retain top talent. These benefits enhance the overall compensation package and contribute to employee satisfaction and loyalty. Common optional benefits include:

  • Health Insurance: Providing private health insurance beyond the basic coverage is a common practice.
  • Life Insurance: Offering life insurance coverage to employees and sometimes their dependents.
  • Disability Insurance: Providing income protection in the event of disability.
  • Additional Retirement Savings Plans: Some companies offer supplementary retirement savings plans, such as defined contribution plans, to help employees save for their future.
  • Transportation Allowance: Providing a transportation allowance to help employees cover commuting costs.
  • Housing Allowance: In certain industries or for specific roles, employers may provide a housing allowance.
  • Education Assistance: Offering tuition reimbursement or scholarships for employees' professional development.
  • Childcare Assistance: Providing childcare benefits or subsidies to help employees manage childcare costs.
  • Gym Memberships: Offering subsidized gym memberships or wellness programs to promote employee health and well-being.
  • Company Car: Some companies offer a company car as a benefit, particularly for sales or management positions.

Health Insurance Requirements and Practices

While Jordan has a public healthcare system, private health insurance is a highly valued and commonly offered benefit in the Jordanian job market. Many employers provide comprehensive health insurance plans to their employees, often extending coverage to dependents as well.

  • Coverage Levels: Health insurance plans typically cover a range of medical services, including doctor visits, hospital stays, surgeries, and prescription medications. Some plans may also include dental and vision care.
  • Provider Networks: Employers often partner with insurance companies that have established networks of healthcare providers, allowing employees to access care from a wide range of doctors and hospitals.
  • Cost Sharing: Health insurance plans may involve cost-sharing mechanisms, such as deductibles, co-payments, and co-insurance, where employees pay a portion of the healthcare costs.
  • Compliance: Employers must comply with any regulations related to health insurance, including ensuring that the plans meet minimum standards and providing employees with clear information about their coverage.

Retirement and Pension Plans

Jordan's social security system provides a basic framework for retirement income. However, many employers supplement this with additional retirement savings plans to enhance employees' financial security in retirement.

  • Social Security Pensions: The Social Security Corporation (SSC) manages the national pension system, which provides retirement benefits based on contributions made during an employee's working years.
  • Supplementary Pension Plans: Some companies offer defined contribution plans, such as provident funds or 401(k)-type plans, where employees and/or employers contribute to individual retirement accounts.
  • End-of-Service Benefits: The mandatory end-of-service indemnity serves as an additional retirement benefit, providing a lump-sum payment to employees upon termination or retirement.

Typical Benefit Packages by Industry and Company Size

The composition of employee benefit packages in Jordan can vary significantly based on industry, company size, and the level of the position.

  • Industry Variations:

    • Technology: Companies in the technology sector often offer more comprehensive benefits packages, including generous health insurance, stock options, and professional development opportunities, to attract and retain highly skilled tech professionals.
    • Finance: Financial institutions typically provide competitive salaries and benefits, including retirement savings plans, performance-based bonuses, and health insurance.
    • Manufacturing: Manufacturing companies may focus on providing benefits that support the health and safety of their workforce, such as comprehensive health insurance and worker's compensation.
  • Company Size Variations:

    • Large Enterprises: Larger companies tend to offer more extensive benefits packages due to their greater resources and economies of scale. They may have the ability to offer a wider range of health insurance options, retirement plans, and other perks.
    • Small and Medium-Sized Enterprises (SMEs): SMEs may offer more basic benefits packages, focusing on mandatory benefits and essential health insurance coverage. They may also offer more flexible work arrangements or other non-cash benefits to attract talent.
Industry Typical Benefits
Technology Comprehensive health insurance, stock options, professional development, generous leave policies.
Finance Competitive salaries, retirement savings plans, performance-based bonuses, health insurance.
Manufacturing Comprehensive health insurance, worker's compensation, safety programs.
SME Focus on mandatory benefits, basic health insurance, flexible work arrangements, performance based bonuses, transportation.

Understanding these variations can help employers design benefit packages that are competitive within their specific industry and appropriate for their company size.

Martijn
Daan
Harvey

Klaar om uw wereldwijde team uit te breiden?

Praat met een expert