Jordan is the land of opportunity and stability for multiple reasons. With its strategic location, it is a key attraction for new businesses looking to set foot in the Middle East. The country also connects Europe with Asia and Africa. In addition, it has a young and well-educated population, which makes it one of the best countries to hire young talent.

The country has 18 FTAs with the US, EU, and Arab countries, providing duty-free access to businesses and over a billion consumers. Also dubbed as the Silicon Valley of the Middle East, it has a booming ICT and tech startup industry. Other sectors like renewable energy, pharmaceuticals, logistics, tourism, and construction are also growing.

However, the country ranks 75th on the World Bank’s Ease of Doing Business Index 2020, which reflects its detailed legislative procedures for new businesses entering the market. The business registration and licensing are also quite time-consuming. However, the government is working on digitization initiatives to streamline these processes and make it increasingly efficient for new businesses to enter the market.

  • In 2024, the GDP of the country stood at USD 53.35 billion.
  • Jordan’s key exports are potassic fertilizers, calcium phosphates, jewelry, packaged medicaments, and phosphoric acid.
  • The total population as of 2026 is 11.5 million.
  • The median age of the population is 23.3 years (as of 2020).
  • The working-age population is about 65.2% of the total population (2025).
  • Jordan has a high literacy rate of 95% (2023).
  • The national official language is Arabic.

The government has also undertaken certain initiatives to encourage new business growth and to attract more Foreign Direct Investments. The Jordan Investment Commission (JIC) supports new businesses in obtaining investment licensing, facilitating permits, and tax exemptions. Jordan also updated its investment law in 2022 to offer further legal protections, customs exemptions, and tax incentives to new investors in key sectors such as industry, ICT, tourism, and renewable energy.

For new tech startups, the Crown Prince Foundation and the Royal Scientific Society run tech incubators, innovation centers, and accelerator programs. 

Looking at the latest Foreign Direct Investment (FDI) statistics, the inflows reached approximately USD 1.23 billion in 2022 from USD 885 million in the previous year. This shows a strong increase of about 39% in just one year. So, given the government initiatives, the country has a healthy rise in investor confidence.

To sum it up, Jordan has a stable business environment that, on the one hand, gives you strategic access to a large consumer market and, on the other, offers a highly educated, bilingual workforce with strong English proficiency. Plus, the rapidly growing ICT sector, reliable infrastructure, and government support make Jordan an ideal choice for businesses looking to establish a regional hub in the Middle East and North Africa.

If you’re not ready yet to set up an official or permanent presence in the country, hiring independent contractors is one of the best ways to tap into the market without getting into the complexities of managing a permanent workforce.

What are Independent Contractors in Jordan?

Independent contractors or freelancers are self-employed individuals who work on a contract basis. They work for different companies or individuals and are not considered their employees. These people work for a preset fee or project rate. They manage their own social security contributions and business expenses.

In Jordan, you will find independent contractors in the fields of IT and software development, graphic design and marketing, writing, construction, education, tutoring, and event planning.

Differences Between Employees and Independent Contractors in Jordan?

While many still confuse employees and independent contractors, there are some substantial differences between the two. Knowing and understanding these differences is very important to ensure compliance with the labor laws and to stay protected from legal proceedings.

Legal Relationship

The employees work under an employment contract governed by Jordanian labor law. The independent contractors work under a service contract or project as covered by the standard labor law protections. The company controls the employees’ working hours, their way of working, and the place or office. Independent contractors can decide how, when, and where they work.

Employment Benefits

Employees are entitled to benefits like health insurance, social security contributions, paid leave, end-of-service compensation, etc. The independent contractors handle their own insurance and retirement plans.

Taxation

The employer withholds the taxes and remits them for their employees. However, the independent must register themselves and pay their taxes. The employer also pays the social security contributions on behalf of the employee. On the other hand, independent contractors have to pay their own social security contributions if they opt for it.

Misclassification of Independent Contractors and Its Consequences

If an employer is found to have misclassified their employee(s), there are serious repercussions for them in Jordan. Misclassification can lead to legal penalties and fines. The employers will also be liable to pay the unpaid wages and benefits, including overtime, paid leave, and severance pay.

Since the employers are also obligated to contribute to social security on behalf of the employees, they will have to pay back these contributions along with penalties. The damage falls beyond the financial penalties. Misclassification can also affect the company’s reputation, leading to a loss of trust among clients, employees, and key stakeholders.

Benefits of Hiring Independent Contractors in Jordan

There are a number of benefits of hiring independent contractors in Jordan. Let’s take a look at a few.

Cost Efficiency

The employee must be paid the full-time benefits, such as health insurance, paid leave, etc. However, there are no mandatory employee benefits for independent contractors in Jordan. So companies that hire independent contractors can better allocate their resources and HR costs to their operational needs or growth initiatives.

Flexibility

Businesses can hire independent contractors for short-term or specialized projects without a long-term commitment. This way, you can easily scale up or down their workforce as needed. Since industries like tech, construction, and consulting are more prominent in Jordan, people usually employ independent contractors in these sectors. This allows you to cater to the workload and market demand without having to pay your workers all year, even when the workload is low.

Access to Specialized Skills

The Jordanians are especially talented in the fields of software development, digital marketing, graphic design, consulting, and translation. So you can easily find a lot of workers with these niche skills working as freelancers in the country. The best part is that they can immediately start working due to their specialized skills and experience. You don’t have to invest in their training and development.

Reduced Administrative Burden

The independent contractors agreements are simpler than employment contracts. This is because the employment contracts are for the long term, whereas the independent contractors’ contracts are for a specified time only. Hence, they come without the complexities of employment law compliance.

The company hiring independent contractors also doesn’t have to handle the monthly payroll processing, social security contributions, and taxes. The independent contractors remit and file their taxes with the Jordanian Income and Sales Tax Department.

Lower Legal Risks

Since the independent contractors are employed for the short term, companies are less likely to encounter disputes and legal issues with them. Also, they aren’t protected by the employment laws, so it’s easier to let them go.

Business Agility

The independent contractors also give you the opportunity to expand your presence in the country without establishing a local entity. You can quickly start your project or work with these contractors without much red tape.

Labor Laws In Jordan

The employees in Jordan and their obligations are governed by the Jordanian Labor Law No. (8) of 1996 (with amendments), Social Security Law No. (1) of 2014, and Income Tax Law No. (38) of 2018.

The independent contractors are governed by the Civil Code No. (43) of 1976 under provisions for service contracts or works contracts.

Here are the key areas these laws govern, which you need to know about before you hire employees or independent contractors in the region.

Wage Rate

The minimum wage rate as set by the Council of Ministers in Jordan is 290 JOD (USD 409) per month as of 2026. However, there are different minimum wage rates for foreign workers and workers in certain sectors. These salaries for the employees must be paid every month in cash, via bank transfers, or by check.

There’s no minimum wage rate for the independent contractors. As a practice, however, they often benchmark their rates according to industry standards to ensure fair compensation for their skills and services.

Working Hours and Overtime

The regular working hours for employees are eight hours a day or 48 hours a week for a six-day week. Employees can work overtime and will be entitled to a pay rate of 125% of the regular wage for normal overtime. 

The rate goes up to 150% for overtime during weekends and holidays. However, there is an upper threshold limit, and overtime cannot exceed 30 hours a month except in exceptional circumstances.

The independent contractors are free to work when and as they want, as long as they are meeting the project deadlines.

Leave and Holidays

There are 14 working days of paid annual leave, which can extend to 21 days after the employee spends five years in the company. Employees are also entitled to 14 days of fully paid sick leave each year, which can be extended with partial pay upon certification by a medical committee.

Then there are public holidays, including Christmas, New Year, Eid al-Fitr, Eid al-Adha, and Independence Day. The independent contractors completely control their working timelines and are not entitled to paid leave.

Maternity Leave

The employees are entitled to 10 weeks of paid maternity leave, which is covered by the employer. There’s also a three-day paternity leave for employees.

The independent contractors do not fall under the labor law protection and hence get no paid leave, social security contributions, or termination protection.

Taxation Laws in Jordan

There are progressive tax rates for employees in Jordan, ranging from 5% to 30%. The employers are required to withhold these taxes and remit them every month. An extra 1% national contribution tax is applied to any amount exceeding JOD 200,000 (USD 282,087) of annual taxable income.

The independent contractors must be registered with the ISTD. They must also file their quarterly estimated tax returns and annual tax returns. However, the tax rates are the same for them. The independent contractors are also allowed to deduct their business-related expenses, like transportation costs, equipment, and professional services, from their gross income.

VAT

VAT, known as the General Sales Tax (GST) in Jordan, is charged at a standard rate of 16% on most goods, services, and certain imports.

Withholding Tax

The businesses paying independent contractors who are not registered for VAT or do not have the complete documentation may have to withhold 5% from their payments and remit it to the ISTD on their behalf.

There are also other taxes, like stamp duty and municipal taxes, that may be applicable to these independent contractors in Jordan.

Social Security Contributions

The employees must make social security contributions in Jordan as per the law. The employers also pay the Social Security Corporation a certain amount on behalf of the employee. The current rates for the employers are 14.25% of the employee’s gross salary.

At the same time, the employee has to pay 7.5% of their gross salary. The Social Security contribution covers work injuries, maternity insurance, pension, unemployment benefits, and health insurance contributions.

Termination of Employment

Employees are required to give a 30-day written notice period before resignation. The employers must do the same for termination, except in cases of gross misconduct, where termination can occur without notice. If a worker is not covered by social security, such as in temporary positions, they are entitled to an end-of-service indemnity equal to one month’s wage for each year of service.

Payment Methods for Independent Contractors in Jordan

In Jordan, there are multiple legal and reliable methods to pay independent contractors. However, each is governed by a specific regulatory authority, practices, and individual preferences in the country.

Bank Transfers

The bank transfers are the most common way of paying these independent contractors. The local bank transfers are IBAN-based for domestic transactions, whereas SWIFT transfers are used for international payments. These transfers are made in Jordanian dinar (JOD), USD, and EUR currencies as agreed with the independent contractors. However, JOD is the local currency and is the most popular method of payment. These transactions are governed by the Central Bank of Jordan’s regulations.

Wise

Independent contractors in Jordan often use WISE to make international payments. It is a popular platform as it gives you a reasonable exchange rate and a lower fee for direct bank transfers. The platform supports JOD, USD, and EUR currencies.

Western Union / MoneyGram

Western Union and MoneyGram are also used in Jordan to make small or one-off payments. These are available at multiple locations in Jordan, like Amman, Aqaba, and Irbid.

PayPal

PayPal only allows funds to be sent or purchases made in Jordan. It does not support receiving payments in the PayPal wallet. So Jordanian contractors often connect their PayPal account with a US bank account and use Payoneer to receive funds and transfer them to their local accounts.

Payoneer

Payoneer is widely used in Jordan, with many freelancers and independent contractors relying on it for international payments. It allows users to receive funds in multiple currencies, which can then be transferred directly to their local bank accounts. Payoneer provides virtual bank accounts in USD, EUR, and GBP, making it highly convenient for global transactions.

Checks

The checks are rarely used by independent contractors due to the high risk of fraud and delays. Usually, these are more common for real estate agents and large corporate deals.

Cash

Some small local independent contractors accept cash payments. However, the practice is highly discouraged for corporate clients, as there is no documentation, and it may raise compliance issues later.

Hire the Top Independent Contractors in Jordan and Expand Your Business

For businesses looking for flexibility, cost efficiency, and access to talent in Jordan, hiring independent contractors is the best way to step into the market. The country has a growing technical and service sector, but the complex regulatory environment makes it difficult for new businesses to survive in the market. So, the independent contractors are the smart alternative to full-time employees. 

There are no long-term overhead costs or obligations to pay employee benefits, which gives the business the freedom to allocate resources towards the key business operations.

We offer fast hiring solutions at up to 40% reduced rates compared to our counterparts. So connect with us today, and we’ll help you get in touch with the top talent to help you establish a firm footing in Jordan.

Frequently Asked Questions

You can hire contractors in Jordan by partnering with independent contractors providers like Remote People. Once you find the right match, you need to create a contract outlining the terms of payment, scope of work, responsibilities, and duration of the contract.

No independent contractors in Jordan are responsible for handling their own income taxes and social security contributions. You may, however, have to retain their documents, such as contracts and invoices, for accounting and compliance.

The most common payment methods for paying independent contractors in Jordan are bank transfers (usually made in JOD or USD), International transfers or SWIFT payments, and other payment platforms like Payoneer and Wise for remote contractors.