Jordan presents a compelling opportunity for employers seeking a skilled and affordable workforce. A young and bilingual talent pool emerges each year, with over 65,000 graduates proficient in English and Arabic. 

Then there are pro-business policies such as tax breaks and free‑zone access. However, you’ll need to know the details of Jordan’s labor laws, including minimum wages for effective hiring practices. It will help you make informed strategic decisions and manage payroll budgets effectively. 

We’ll share everything you need to know about Jordan’s minimum wage and why investing in an Employer of Record Service is the best choice. 

Here’s What to Know About the Minimum Wage in Jordan

Jordan’s national minimum wage rose sharply to 290 JOD per month (about $410) in January 2025, which is up from 260 JOD in 2024. This 11.5% increase marks the highest rate in the country’s history. For context, the rate stood at 150 JOD in 2010, so it reflects an almost doubling in over 15 years.

The Labour Affairs Committee negotiated the adjustment, which represents the government, employers, and the union. Officially, it aims to counter inflation and elevate living standards. Labour Minister Khaled Bakkar framed it as “balancing worker rights with economic realities.”

Is the Minimum Wage in Jordan Enough?

Critics of the minimum wage increase highlight that it’s not enough or has a few big gaps. Here are the biggest issues you should know about:

  • Comparison with living costs: Single person living expenses in cities like Amman average 475 JOD/month, which surpasses the new minimum. Rent alone consumes around 400 JOD for a one bedroom apartment. Hence, employers need to be mindful of the living costs when considering an appropriate wage. 
  • Comparison with national average: At 46% of Jordan’s average wage (627 JOD), the rate falls below the ILO’s recommended 55% benchmark. This widens income inequality unless there are systematic changes across several industries. 
  • Sector exclusions: Garment workers and non-Jordanian domestic staff were excluded from the increase. That’s because the garment sector wages rose separately to 230 JOD, while it is still 60 JOD below the national standard. Unions call this discriminatory, and there may be future negotiations to address this. 

New Rules Employers Can’t Ignore

Jordan’s Labour Law saw major amendments in 2023–2025. Key updates affecting minimum wage strategies include:

  • Unfair dismissal definitions: New regulations specify unlawful termination scenarios and compensation entitlements. For example, dismissing pregnant workers at any pregnancy stage is now prohibited.
  • Contract renewals: Fixed-term contracts renew if work continues after expiry, so there’s no automatic conversion to unlimited contracts. That’s a benefit for employers since it provides more flexibility for hiring employees in Jordan. 
  • Overtime caps: Work beyond 48 hours per week is capped at 3 hours per day or 10 hours weekly. Note that financial compensation must convert to administrative leave after 3 consecutive months.

It’s important for employers to stay up to date with the latest hiring laws to avoid penalties for a lack of compliance. However, you can use PEO services to simplify the hiring process without manually dealing with constant updates. 

Tips For Employers Hiring in Jordan

Draft Compliant and Bilingual Employment Contracts

Jordanian law mandates written employment contracts, which must ideally be in both Arabic and English. These contracts must detail role responsibilities, salary, working hours, probation (max three months), termination notice, and severance. 

Furthermore, it’s vital to register them with the Ministry of Labor within 15 days of hire to avoid legal penalties. Note that employers who skip these steps risk disputes over terms or wrongful dismissal.

Provide Fair Compensation with Social Security and Tax Obligations

You need to set a salary that ensures compliance with the JOD 290 minimum wage. Also, factor in mandatory employer contributions of about 14.25% to social security. Additionally, withhold income taxes ranging up to 30% per employee income bracket. Proper payroll systems help avoid fines and legal compliance problems. 

You’ll find that transparency builds trust with staff and demonstrates that your business meets public obligations. Don’t neglect to budget for contributions and tax deductions upfront to keep finance teams on track.

Understand Foreign Worker Permits and Quotas

Hiring expatriates in Jordan requires both a work permit and a visa. Employers doing business in Jordan must apply to the Ministry of Labor and prove that no qualified Jordanian is available for the role. The process can take 4 to 8 weeks and may involve industry-specific quotas. 

Once approved, employers sponsor the employee by covering visa fees, and must report any job changes to the Ministry. Planning in advance of when you need work to begin allows you to avoid delays. 

Design Structured Interviews and Fair Assessments

Build a recruitment process that assesses both skills and cultural fit. Ideally, you’ll use structured interviews and assessments for evaluation. Avoid inappropriate questions, such as marital status or political views, which are prohibited by Jordan’s anti-discrimination law. 

It’s also useful to clarify expectations around work hours and confirm candidate availability around holidays and fasting months. This creates respect and clarity from the outset.

Benefits of Hiring Employees in Jordan

There are several reasons that businesses expand to Jordan, which are as follows:

  • Access to educated and bilingual talent: Jordan offers a young workforce fluent in Arabic and English. There are over 65,000 university graduates entering the market annually. Many of them are in business, engineering, and IT, thereby providing employers a ready pool of skilled professionals.
  • Cost‑effective labor: Labor costs in Jordan are lower than those in most Western countries, while skill levels remain high. This creates a balance for employers seeking efficiency without sacrificing quality.
  • Government incentives & free‑zone access: Jordan’s economic zones grant tax breaks, free land, low interest loans, and reduced customs for qualifying firms. These incentives make local hiring more financially attractive in key industries like manufacturing and tech.
  • Robust growth in tech and innovation: Jordan’s thriving ICT sector and high internet penetration support vibrant startup ecosystems. Hence, employers have access to tech‑savvy professionals and talent that focuses on innovation. 
  • Geographic location: Situated between Asia, Africa, and Europe, Jordan offers logistical advantages and timezone compatibility with multiple markets. Also, the stable infrastructure supports cross-border operations and remote teamwork across regions. 

Future Outlook

Jordan’s job market stands at a turning point. Automation and AI are going to reshape roles in administration and customer service. Meanwhile, tech, data analytics, and clean energy sectors are likely to continue thriving. 

However, the problem of high rates of youth unemployment remains, which gives employers a large labor pool to hire from. Note that Jordan is also doubling down on technical training and vocational programs to make the young talent pool more attractive to employers. 

Hire Employees in Jordan with Our Help

While Jordan is an excellent country to hire employees, you need to overcome challenges to avoid fines or damaging your brand reputation. This includes everything from paying the minimum wage on time to informing the right government organization after hiring. 

You can simplify the process by investing in an Employer of Record service. These companies assist businesses with meeting hiring needs without having to set up a legal entity. They take action on your behalf, so you can focus on other business activities. 

Check out our Employer of Record Service in Jordan for a company that has a proven track record. We have helped many businesses launch in Jordan while attracting the top talent. Your business can be next and tap into the growing local workforce.