Flag of Jordan

Jordan

Europe

Running Payroll in Jordan with Rippling

Jordan has 14.25% employer SSC, progressive income tax (5–30%), JOD 260/month minimum wage, and a growing Amman technology ecosystem. Rippling handles SSC, ISTD, and Jordan Labour Law compliance.

Compliance Complexity
Medium
Understanding contractor classification rules is critical before engaging independent contractors.
Rippling Availability
Full
Understanding contractor classification rules is critical before engaging independent contractors.

Location Overview

Jordan is a Middle Eastern upper-middle-income country with a large, well-educated, English and Arabic-speaking workforce. Amman is the primary business hub with a growing technology and startup ecosystem. Jordan has strong IT education, regional political stability relative to neighbors, and a significant Jordanian diaspora with international connections. Jordan uses the Jordanian dinar (JOD), one of the world's highest-valued currencies.

Entity Requirement

What You Need Before Running Payroll Here.
  • Jordanian legal entity (LLC or branch) registered with the Companies Control Department (CCD)
  • SSC (Social Security Corporation) employer registration
  • Income and Sales Tax Department (ISTD) employer registration for income tax withholding
  • Ministry of Labour registration
  • Work permits for all non-Jordanian employees

Rippling Payroll Notes

How Rippling Handles Payroll Here.

Payroll Compliance at a Glance

A quick view of the core payroll requirements, statutory rules, and operating details for this location.
Flag of Jordan
Jordanian Dinar (JOD)
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    Minimum Wage

    JOD 260/month (2024). Reviewed by National Minimum Wage Committee.
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    Payroll Cycle

    Monthly. SSC and income tax remitted monthly. Annual ISTD reconciliation.
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    Working Hours

    48 hours/week (8 hours/day, 6 days). Ramadan: 36 hours/week for Muslim employees. Overtime: 25% premium (daytime weekday); 50% (night/holiday).
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    Payroll Tax

    <p>SSC employer: 14.25% of gross. Total employer on-cost approximately 14–15% of gross. Monthly remittance to SSC and ISTD.</p>
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    Compliance Complexity

    Medium
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    Country Code

    Jordanian Dinar (JOD)
  • Employer & Employee Contributions

    A side-by-side view of employer obligations and employee payroll deductions.

    Employer Contributions

    ContributionRateNotes
    SSC (employer)14.25%Pension, disability, death, work injury, and other branches

    Employee Contributions

    ContributionRateNotes
    SSC (employee)7.5%Pension, disability, death, work injury insurance
    Income tax5–30%Progressive; withheld monthly by employer

    Tax, Leave & Termination

    Key employment information to help you understand your obligations and Employee rights

    Income Tax Summary

    Annual Income (JOD, after exemptions)Rate
    Up to 5,0005%
    5,001–10,00010%
    10,001–15,00015%
    15,001–20,00020%
    20,001–1,000,00025%
    Above 1,000,00030%

    Personal exemption: JOD 9,000 (single), JOD 18,000 (family). Monthly withholding by employer; remitted to ISTD.

    Leave Entitlements

    • Annual leave: 14 days per year (first 5 years); 21 days (after 5 years).
    • Sick leave: 14 days at full pay; 14 days at 75%; 14 days at 50%.
    • Maternity leave: 10 weeks paid at full salary.
    • Public holidays: 12 national holidays.

    Termination Rules

    Notice: 1 month. Severance (without just cause): 1 month/year of service. End of service gratuity (5+ years): 1 month/year. Ministry of Labour notification required for collective dismissals.

    Year-End Filings

    • Annual ISTD income tax reconciliation.
    • SSC annual contribution statement.

    Benefits Overview

    • Social Security Corporation (SSC): Employer 14.25% of gross salary. Employee 7.5%.
    • Market standard: Private health insurance, housing allowance, transport allowance, annual bonus. Amman is the primary market.

    FAQ

    How does Jordan's income tax work?

    Jordan's income tax is progressive with multiple brackets: 5% (up to JOD 5,000/year after exemptions); 10% (JOD 5,001–10,000); 15% (JOD 10,001–15,000); 20% (JOD 15,001–20,000); 25% (JOD 20,001–1,000,000); 30% (above JOD 1,000,000). Personal exemption: JOD 9,000/year (single); JOD 18,000 (family). Employer withholds monthly.

    What is Jordan's minimum wage?

    Jordan's minimum wage is JOD 260/month (2024), set by the National Minimum Wage Committee and applicable to both Jordanians and foreign workers. Jordan's minimum wage is periodically reviewed. For technology and professional roles, market rates are substantially above the minimum.

    What is Jordan's technology talent market like?

    Jordan has a large, well-educated, English and Arabic-speaking professional workforce, with particular strengths in engineering, IT, accounting, and finance. Amman is the primary business hub and home to Jordan's growing startup ecosystem. Jordan's technology sector has produced regional companies including Souq (acquired by Amazon), Maktoob, and a growing network of tech startups supported by Jordan's King Abdullah II Fund for Development.

    What are Jordan's termination requirements?

    Notice: 1 month (standard). Severance: 1 month's wage per year of service on termination without just cause. End of service gratuity: 1 month's wage per year of service for employees with 5+ years (private sector). Collective dismissals require Ministry of Labour notification.

    Related Locations

    Explore nearby and comparable markets to understand how payroll requirements and compliance complexity differ.