Occupying a strategic intersection between Africa, Asia, and Europe lies the thriving Middle-Eastern nation of Jordan. Despite regional geopolitical tensions, Jordan has shown great resilience and stability, enjoying an average GDP growth of 2.5% over the last decade. Government initiatives to address water and energy shortages through green growth strategies have boosted Jordan’s position in the renewable energy sector. Additionally, recent surges in the tourism industry post-pandemic have also made the services industry a desirable sector for global expansion.

The government-led 3-track 10-year political, public sector, and economic modernization plan includes targets to double growth rates, introduce 1 million jobs, and continue promoting sustainability. The reform, signed in 2021, has already produced impressive results, with Jordan’s minister of government communications, Muhannad Al Mubaideen, proudly reporting a creation of 95,342 job opportunities in 2023, considerably higher than the total of 89,500 recorded in 2022.

If your business is considering expanding into Jordan and hiring a Jordan-based team, Employer of Record (EOR) services can save companies two precious commodities: time and money. By outsourcing their HR tasks, companies can expedite the administrative process and prioritize running their business.

Here we explain how Jordan EOR services work and their potential benefits to your business. 

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What is a Jordan Employer of Record?

A Jordan Employer of Record (EOR) is a third-party provider that hires and manages employees in Jordan on behalf of companies looking to expand into the country without forming a local entity. By acting as the legal employer, the EOR assumes critical tasks such as drafting employment contracts, handling payroll, and ensuring compliance with Jordan’s labor laws. Meanwhile, the client company retains operational control over day-to-day activities and employee performance, streamlining market entry and reducing administrative burdens.

Jordan’s primary labor regulations are governed by the Labor Law (No. 8 of 1996), which mandates provisions on minimum wage, working hours, overtime compensation, and paid leave. Additionally, employers must register for social security with the Jordanian Social Security Corporation (SSC) to cover pensions, medical benefits, and unemployment insurance. The EOR manages these responsibilities—taking care of tax registration, payroll deductions, and any required social security contributions—helping businesses avoid noncompliance risks and costly penalties.

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Let us handle the hiring, compliance, and payroll complexities in Jordan while you focus on growing your team.

  • Hire employees in Jordan with a Jordan EOR
  • No local entity is needed
  • Pricing starts at USD 199 per employee
  • Remote People can also help you find the best talent in Jordan

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Diagram illustrating the responsibilities of an Employer of Record (EOR) in Jordan
Simplify global expansion with a Jordan Employer of Record (EOR)

What's the Difference Between a Jordan EOR and a Jordan Professional Employer Organization?

An EOR performs similar duties to a Jordan PEO (Professional Employer Organization). Technically, a PEO requires the client company to have established a legal entity in the foreign country, acting as the co-employer of that entity and sharing the liability with the business. Conversely, a Jordan EOR has its own legal entity in-country, meaning no further establishment is required. Additionally, an EOR takes the role of legal employer and, therefore, assumes all liability.

Note, the terms Jordan EOR and Jordan PEO, in practice, are often used interchangeably. 

How Does a Jordan Employer of Record Work?

By engaging a Jordan EOR service, organizations can hire local employees without registering a separate legal entity, allowing them to focus on strategic business activities rather than compliance and paperwork. The EOR handles tasks such as drafting Jordan-compliant employment contracts, running payroll, and ensuring adherence to local tax and social security obligations.

Below are some of the key responsibilities a Jordan EOR manages:

  • Payroll & Taxes: Calculating wages, withholding the right amount of income tax, and arranging any required social security contributions through the Jordanian Social Security Corporation.
  • Employment Contracts: Drafting, reviewing, and maintaining contracts in alignment with Jordan’s Labor Law (No. 8 of 1996).
  • Regulatory Compliance: Monitoring legal updates regarding minimum wage, overtime, and leave entitlements, helping the client stay ahead of evolving requirements.

While the EOR takes care of these administrative elements, the client company directs day-to-day tasks, sets performance goals, and manages the overall workflow. As an additional service, some Jordan EORs can also support companies with recruitment and visa support services. 

What are the Benefits of a Jordan Employer of Record?

Partnering with a Jordan Employer of Record (EOR) offers a fast, compliant, and cost-effective way to hire employees without setting up a local entity. Whether you’re testing the market or scaling long-term, a Jordan EOR helps manage complex employment tasks, like payroll, taxes, contracts, and benefits, so you can focus on growing your business. Here are some of the key advantages:

  • Compliant business expansion: Companies looking to expand into Jordan should be able to access the potential of this new foreign market immediately. Jordan EOR companies accelerate this process, managing and optimizing HR functions to ensure companies benefit from the best local talent, make the most of available tax incentives, and comply with the relevant legislation.
  • Cost Savings: With EOR solutions, companies do not have to finance the establishment of a legal entity in Jordan, thus saving them significant time and money. Moreover, businesses will no longer be required to temporarily pause the activities of the parent company so as to dedicate the necessary time and money to their new business. Instead, they can resume home operations while simultaneously reaping the benefits of international expansion.
  • Speed: Begin your Jordan operations within days, rather than waiting for the months it may take to set up a fully compliant local entity. 

What are the Downsides of a Jordan Employer of Record?

While it has benefits for most global companies, there are still potential downsides to Jordan EOR services. 

Paying a premium to a third-party service while simultaneously financing a large workforce can make contracting an EOR a particularly costly venture for bigger businesses, that may be better off just setting up their own entity.

Furthermore, if the EOR’s activities generate a large revenue or if the EOR is seen as being involved in high-level decision-making, they could be classified as an ‘ongoing presence’ within the country (permanent establishment) and consequently liable for tax. However, smaller businesses can significantly save on administrative expenses and avoid the costs that accompany establishing a legal entity. Fines and penalties arising from compliance issues can also be prevented through the EOR’s thorough understanding of local legislation.

Finally, having outsourced HR duties to the EOR, businesses may also feel they have less control over their internal operations. Clear communication between the service provider and the business and the implementation of fully integrated technology can help parent companies feel better connected to the foreign company.

How Much Does a Jordan Employer of Record Cost?

The cost of working with an Employer of Record (EOR) in Jordan depends on several factors, including the number of employees, the level of service required, and whether additional support, such as visa processing or customized HR solutions, is needed.

In general, you can expect to pay between $500 and $1,200 USD per employee per month. Most EOR providers charge either a flat monthly fee or a percentage of the employee’s gross salary (typically 10%–20%).

These fees typically cover:

  • Employment contract preparation and legal compliance
  • Payroll processing and salary distribution
  • Tax withholding and contributions to Jordan’s Social Security Corporation (SSC)
  • Benefits administration (paid leave, health insurance, end-of-service obligations)
  • Ongoing HR and legal support

While EOR services do come with a monthly cost, they are often more cost-effective and faster than setting up your own legal entity in Jordan, especially for companies testing the market or managing a lean operation.

How Does Labor Law Affect Hiring in Jordan?

Workers are protected from discrimination and exploitation by the Jordanian Labor Law (1996) and its subsequent amendments (2019). The law stipulates that employment contracts must be drafted in Arabic and that workers are only expected to work for the contracted period, which in Jordan should be at most 48 standard hours per week. All workers, no matter their contract type, are entitled to social security, which is disbursed by the SSC (Social Security Corporation) following monthly contributions of 7.5%. An additional 14.25% from employers should be contributed to the SSC on the employee’s behalf.

Employees are entitled to 14 days of paid annual leave, which increases to 21 days if they have been part of the organization for five or more years. Sick leave is also paid up to a maximum of 14 days. However, in the event of hospitalization, workers may be entitled to an increase in paid sick leave. Pregnant mothers are provided with an accumulative ten weeks of maternity leave, and fathers are entitled to three days of paternity leave.

Employers must give at least one week’s notice to terminate an employee who has been contracted for less than two years. The notice time required increases by an additional week with every year of work. Exemptions to notice periods can apply in circumstances of extreme misconduct. For workers in Jordan, the minimum wage currently sits at 260 JOD per month (approx. $367).

Compliance Considerations When Hiring in Jordan

Hiring in Jordan comes with unique regulatory requirements that every employer must navigate carefully. A Jordan Employer of Record (EOR) helps you stay compliant with the country’s labor laws, reducing risk and protecting your business from legal or financial penalties.

Employment Contracts in Jordan

In Jordan, employment agreements should be prepared in writing and must be in Arabic to be legally binding. These contracts can be indefinite (permanent) or created for fixed terms of up to five years, including any extensions and renewals. If the employee is still engaged after five years, they will automatically be on an indefinite contract. The following details must be included in employment contracts: start (and, if applicable, end) date, job description, location, wages, hours, overtime rules, leaves, social security, probation, and termination and dispute resolution arrangements.

Probation Periods in Jordan

Probation periods are not required in Jordan, but they are widely used by employers across all industries as periods to evaluate the performance of their new workers. During probation, employees cannot be paid less than the national minimum wage. However, there is no prohibition against paying them less during probation than their fully-employed counterparts. 

Probation periods in Jordan can last up to three months. They cannot be extended or renewed, as three months is considered adequate and fair for assessing any worker’s skills. Either party to the employment agreement may terminate it during the probation period without giving the other party notice. Employers also do not have to justify terminations during this time. 

If neither terminates the agreement, the worker will automatically be considered a full employee at the end of their probation, and the probationary period will be counted as part of their service to the employer.

Social Security in Jordan

Jordan has an extensive social security system managed by the Social Security Corporation (SSC). This administrative body manages the collection of contributions to various social security programs and the distribution of benefits relating to old-age, disability, death, sickness, maternity, and unemployment.

Contributions come from both employers and their employees to the following programs:

  • Old-age, disability, and survivors’ benefits: employees pay 6.5% of their earnings; employers pay 11%
  • Sickness and maternity: employers pay 0.75% of each employee’s earnings
  • Work injury: employers pay 2% of each employee’s earnings
  • Unemployment: employees pay 1.0% of their earnings; employers pay 0.5%

Employees can access their old-age benefits after reaching the age of 60 for men and 55 for women. Health insurance is not included in these benefits and is not free in Jordan, though public health insurance is available and highly subsidized by the government.

Working Hours in Jordan

Employees in Jordan work a workweek of 48 regular hours, usually performing eight hours of work six days a week. They must receive at least ten hours of rest between work days, and should normally be given a weekly rest day that usually falls on Friday. However, if the employer agrees, workers may save up four rest days by working continuously for 24 days, then use these four days in a single block. 

Workers usually work overtime voluntarily. However, they can also be compelled to work overtime for as many as 60 days in a year if the employer needs them to help take an inventory of goods or to prevent loss of goods or capital that could occur due to a work stoppage. Employees can only work for ten hours per day, including overtime, or 60 hours per week, so they are effectively limited to 12 hours of overtime per week. They must be compensated at 125% of their normal wages for working overtime hours.

Work Permits/Work Visas in Jordan

You may wish to recruit expatriate employees to relocate to Jordan and work for your venture in the country. To do so, they must obtain the right work authorization. 

The first step is for the employee to apply for a work permit from the Ministry of Labor, with your company’s help as a sponsor. This application will only be approved if you can prove that no Jordanians with the appropriate experience are available to work for you. The work permit will normally last a year and can be renewed.

Once the work permit is obtained, the employee must next apply for an entry visa from their closest Jordanian Consulate. Once they have the visa, they can travel to Jordan and register as being in the country.

Finally, the employee will need to apply for a residence permit from the Ministry of the Interior to live and work in the country.

Remote People can support you and your international employees with these applications. Our experience makes the process easy and helps foreign nationals relocate to Jordan quickly.

Employee Leave in Jordan

Jordanian employees are entitled to multiple types of leave to help them manage their personal and family affairs in balance with their work responsibilities. These leaves include:

All workers in Jordan are entitled to at least 14 days of paid annual leave after each year of service to their employer. This leave is fully-paid by the employer and must be taken in not less than six-day periods. After five years of service, the leave entitlement increases to 21 days. If the employer agrees, unused leave may be carried over to the following year but must be used within that year or be forfeited. Public holidays are treated separately and cannot be included in the employee’s leave entitlement.

Paternity Leave

According to the Jordanian Labor Law, new fathers are entitled to three days of paternity leave upon the birth of a child. This leave is paid for by the SSC.

Maternity Leave

New mothers are entitled to ten weeks of maternity leave, and at least six of which must be taken after giving birth. This leave is fully paid by the SSC if the mother has paid at least six months of contributions.  

Other Leave

Workers are entitled to 14 days of fully paid sick leave. If the worker is hospitalized, this leave can be extended another 14 days at half-pay. Women who work for employers with at least ten employees are also entitled to one year of unpaid leave to care for their children, and have the right to be reinstated after this leave is over. 

13th-Month Pay in Jordan

Jordanian law does not require employers to provide 13th-month or any other types of bonuses to their employees. If an employer promises such a bonus and includes it in an employment contract, however, they are obligated to provide it.

Employee Termination and Severance in Jordan

Employers can immediately and summarily dismiss workers for gross misconduct, including actions like causing damage to the employer’s property, being absent without good cause for 20 days in the year or ten consecutive days, or failing to follow their side of the contract.

Workers who break company rules must be warned before they can be terminated. However, if they receive two formal, written warnings and still do not correct their behavior, they can be summarily dismissed.

Otherwise, employees and employers must give each other one month’s notice if they wish to terminate their contracts. Dismissed employees who are not covered by social security are entitled to one month’s wages for each year of service to the employer in severance pay.

Minimum Wage in Jordan

Jordan recently updated its minimum wage on 1 January 2025. The national minimum wage for most workers is 290 JOD (Jordanian dinar) per month, or roughly 410 USD. However, the textile and garment industries have a lower minimum wage of 230 JOD/month (around 325 USD).

Employers must pay all workers at least this minimum wage, regardless of their positions and probationary status.

Payroll and Income Taxes in Jordan

Jordanians are required to pay personal income taxes on their employment income. This pay-as-you-earn (PAYE) tax must be calculated and withheld by employers on behalf of their employees. The tax rates in Jordan are progressive and range from 5% to 30% of earnings. 

In addition, Jordanians must pay a 1% national contribution tax on any annual income over 200,000 JOD (around 282,000 USD). The tax year in Jordan follows the calendar year. Individuals must, therefore, submit their tax returns to the Ministry of Finance Income and Sales Tax Department by 30 April following the tax year. 

While some employers may choose to pay their employees bi-weekly or semi-monthly, they must at least pay them once a month. They must pay wages within seven days of the end of the month and are responsible for deducting social security contributions and withholding taxes.

Hiring Contractors in Jordan

Independent contractors can be very beneficial for employers in Jordan. They can allow employers to access skills and knowledge that they may otherwise not be able to find. Hiring contractors instead of employees also allows greater flexibility and the ability to hire for short periods or specific projects. Employers can also reduce their administrative burdens because they don’t need to calculate taxes and social security contributions for contractors. Contractors are required to file taxes on their own, however, and must pay the full 17.5% contribution for social security.

Workers' Compensation in Jordan

In Jordan, workers’ compensation insurance is compulsory for employers and built into the country’s social security system. Employers have to pay 2% of each employee’s earnings to the SSC to cover injuries, illnesses, and death from work-related activities and conditions. Employees do not have to contribute to this system.

By working with a trusted Jordan EOR, your business gains expert support in meeting these requirements, ensuring compliance from day one and avoiding the costly risks of non-compliance.

Engage a Jordan Employer of Record, with Remote People

Expanding your team in Jordan doesn’t have to mean navigating complex labor laws or setting up a local entity. By partnering with a trusted Jordan Employer of Record (EOR), your company can hire quickly, manage HR and payroll with ease, and stay fully compliant with local regulations, without the administrative burden.

Remote People acts as your EOR in Jordan, providing end-to-end support from onboarding to payroll and compliance. We help you reduce risk, save time, and focus on growing your business with confidence.

Choosing the right EOR service is key to unlocking the full benefits of expansion. Partner with Remote People to streamline hiring, ensure compliance, and grow your team with confidence.

FAQs About Employer of Record Services in Jordan

Yes, using an EOR in Jordan is legal. EOR providers must comply with Jordanian labor laws, including employment contract requirements, end-of-service benefits, and mandatory registration with the Social Security Corporation (SSC). A reputable EOR ensures full legal compliance.

Employees in Jordan are entitled to benefits such as paid annual leave (14–21 days), public holidays, paid sick leave, maternity leave, and social security contributions. In some cases, employees are also eligible for end-of-service gratuity. A qualified EOR handles these benefits on your behalf.

EOR pricing in Jordan typically starts at $500 to $1,200 per employee per month, depending on the services included and the size of your team. Pricing may vary based on onboarding complexity, visa support, and custom HR services.

Yes. A Jordan EOR can help with the labor permit and visa process for expatriate employees. They manage the required documentation, liaise with the Ministry of Labor, and ensure all foreign hires are legally authorized to work in Jordan.

Hiring directly without local expertise may expose your company to compliance risks, such as incorrect employment contracts, missed social security contributions, or failure to meet end-of-service obligations. A Jordan EOR minimizes these risks by managing local requirements from day one.