Guide to Jordanian Labour Law for Garment
Labor authorityJurisdiction: Jordan
Publisher
Ministry of Labour
Checked
March 23, 2026
Global Insights
Hire in Jordan
Jordan hiring relies on Labour Law-compliant employment terms, documented leave handling, and consistent salary-withholding administration. Employers should align contracts, payroll controls, and employee records before local hiring.
November 6, 2024
Operational snapshot
Hire in Jordan
Jordan hiring relies on Labour Law-compliant employment terms, documented leave handling, and consistent salary-withholding administration. Employers should align contracts, payroll controls, and employee records before local hiring.
Capital
Amman
Payroll cycle
Monthly
Employer contribution
14.25%
Languages
Arabic
Currency
Jordanian Dinar (JOD)
Last reviewed
March 23, 2026
Employment and compliance summary
Employer cost and contributions
Employer planning should include salary commitments, leave liabilities, and the administrative burden of maintaining compliant employment documentation. Operating budgets should be reviewed...
- Employer planning should include salary commitments, leave liabilities, and the administrative burden of maintaining compliant employment documentation.
- Operating budgets should be reviewed together with withholding obligations and final-pay exposure.
Payroll and tax operations
Payroll should stay aligned with local salary-withholding expectations and the written terms of employment from the start of the relationship. Employers should validate pay timing,...
- Payroll should stay aligned with local salary-withholding expectations and the written terms of employment from the start of the relationship.
- Employers should validate pay timing, deductions, and supporting records before the first payroll run.
Leave and holiday rules
Annual leave entitlement should be tracked consistently and kept aligned with employee records and payroll treatment. Leave balances should be reviewed before any employment change or exit...
- Annual leave entitlement should be tracked consistently and kept aligned with employee records and payroll treatment.
- Leave balances should be reviewed before any employment change or exit calculation.
Termination and notice
Termination handling should follow the applicable legal process and documented employment records before execution. Exit workflow should confirm final pay, unused-leave exposure, and file...
- Termination handling should follow the applicable legal process and documented employment records before execution.
- Exit workflow should confirm final pay, unused-leave exposure, and file completeness in one controlled step.
Minimum Wage
In Jordan, the minimum wage is set at 260 JOD per month as of 2024. This minimum wage applies to all workers, regardless of their employment status, and is designed to ensure that employees receive a basic standard of living. Employers must comply with this regulation to avoid penalties and ensure fair compensation for their employees.
| Minimum Wage Rate | Monthly Equivalent |
|---|---|
| 260 JOD | 260 JOD |
Income Tax
Jordan employs a progressive income tax system, where the tax rate increases with the level of income. The personal income tax (PIT) rates range from 5% to 30% based on taxable income. Residents and non-residents are taxed on income earned within Jordan, and the taxation structure is designed to ensure that higher earners contribute a larger share of their income.
Income Tax Rates
| Taxable Income (JOD) | Tax Rate (%) |
|---|---|
| Up to 5,000 | 5% |
| 5,001 – 10,000 | 10% |
| 10,001 – 15,000 | 15% |
| 15,001 – 20,000 | 20% |
| 20,001 – 1,000,000 | 25% |
| Over 1,000,000 | 30% |
Additionally, an extra 1% national contribution tax applies to individuals with an annual income exceeding 200,000 JOD.
Payroll Cost
Employers in Jordan are required to contribute to the social security system, which includes both employer and employee contributions. The total social security contribution rate is 21.75%, divided between the employer and employee as follows:
Payroll Contributions
| Contribution Item | Employer Contribution Rate (%) | Employee Contribution Rate (%) |
|---|---|---|
| Social Security | 14.25% | 7.50% |
Employers must ensure timely payments to the social security fund and maintain accurate payroll records.
Overtime Pay
In Jordan, there are specific regulations regarding overtime pay. Employees who work beyond the standard working hours are entitled to overtime compensation. The typical workweek is defined as 48 hours, and any hours worked beyond this limit should be compensated at a higher rate.
Overtime Compensation Rates
Overtime pay is generally calculated as follows:
- For hours worked beyond the regular schedule on weekdays: 1.25 times the regular hourly rate.
- For hours worked on weekends or public holidays: 1.5 times the regular hourly rate.
Table Summary of Overtime Regulations
| Working Hours | Overtime Pay Rate |
|---|---|
| Standard: Up to 48 hours/week | Regular rate + 25% for weekdays; Regular rate + 50% for weekends/public holidays |
Understanding these aspects of pay and tax regulations in Jordan is crucial for compliance with local laws and ensuring fair treatment of employees. Employers should regularly review these regulations to stay updated on any changes that may affect their payroll practices.
Regular & Maximum Working Hours
In Jordan, the regular working hours are defined by labor laws to ensure fair treatment of employees. The legal maximum working hours are set at 8 hours per day and 48 hours per week. Employers have the flexibility to distribute these hours throughout the week, provided that daily working hours do not exceed 11 hours. Employees have the right to refuse any work that exceeds these statutory limits.
| Working Hours Category | Description |
|---|---|
| Regular Daily Hours | Up to 8 hours |
| Maximum Weekly Hours | 48 hours |
| Maximum Daily Hours | Up to 11 hours |
Friday is designated as the official weekly rest day in Jordan, although specific sectors may have different arrangements with prior approval from the Ministry of Labour.
Leave
Employees in Jordan are entitled to various types of leave, which are important for maintaining work-life balance and ensuring employee well-being. The key types of leave include:
Annual Leave
Employees are entitled to 14 days of paid annual leave for each year of service. After five years of continuous employment, this entitlement increases to 21 days. If an employee’s contract is terminated before they have used their annual leave, they are entitled to payment for any unused leave days.
Sick Leave
Employees have the right to a maximum of 14 days of fully paid sick leave each year. If hospitalization is required, an additional 14 days may be granted. After this period, employees can receive up to 14 days of half-paid sick leave, provided they submit a medical certificate.
Maternity Leave
Female employees are entitled to 10 weeks of paid maternity leave, with a minimum of 6 weeks required to be taken after childbirth. Additionally, new mothers working in organizations with more than 10 employees can request up to one year of unpaid leave for child-rearing purposes.
Parental Leave
Parents are entitled to parental leave, allowing them time off for family responsibilities. This is particularly important for new parents adjusting to life with a newborn.
| Leave Type | Duration |
|---|---|
| Annual Leave | 14 days (increases to 21 days after 5 years) |
| Sick Leave | 14 days fully paid; additional 14 days if hospitalized |
| Maternity Leave | 10 weeks paid; minimum 6 weeks after childbirth |
| Parental Leave | Up to 1 year unpaid (for organizations with >10 employees) |
Holidays
Jordan recognizes several public holidays throughout the year, which provide employees with additional time off work. The main public holidays include:
| Holiday Name | Date or Occasion |
|---|---|
| New Year’s Day | January 1 |
| Labor Day | May 1 |
| Independence Day | May 25 |
| Eid al-Fitr | Varies (Islamic calendar) |
| Eid al-Adha | Varies (Islamic calendar) |
| Islamic New Year | Varies (Islamic calendar) |
These holidays are typically paid days off, and if they fall on a weekend, employees may receive an alternative day off.Understanding the regulations surrounding working hours and leave entitlements is crucial for employers and employees alike in Jordan. By adhering to these guidelines, employers can foster a positive work environment that promotes employee satisfaction and compliance with local labor laws.
Termination Requirements
In Jordan, termination of employment contracts is governed by the Labor Code, which specifies valid grounds for dismissal. Terminations can occur under various circumstances, including:
- Voluntary resignation by the employee.
- Mutual agreement between the employer and employee.
- Unilateral termination by the employer based on:
- Completion of the probation period.
- Objective grounds such as misconduct or poor performance.
- Expiration of a fixed-term contract.
Employers are required to ensure that any termination is for just cause, and employees are protected against dismissal in specific situations, such as during authorized leave or pregnancy.
| Termination Type | Description |
|---|---|
| Voluntary | Employee chooses to resign |
| Mutual Agreement | Both parties agree to terminate |
| Unilateral (Employer) | Based on probation, misconduct, or contract expiration |
Notice Period
The notice period required for termination varies depending on the type of contract and the reason for termination. For most employees, a written notice of at least 30 days is required if the employer decides to terminate the contract after the probation period. During the probation period, either party can terminate the contract without prior notice.
Notice Period Guidelines
| Employment Status | Notice Period Required |
|---|---|
| After Probation | Minimum of 30 days |
| During Probation | No notice required |
Failure to provide proper notice may result in compensation equivalent to wages for the notice period.
Severance Pay
Employees who are terminated are entitled to severance pay, which is calculated based on their length of service. For employees with indefinite contracts, severance pay is typically equivalent to one month’s salary for each year of service. The minimum severance pay is two months’ salary.
Severance Pay Calculation
| Contract Type | Severance Pay Calculation |
|---|---|
| Indefinite Contract | One month’s salary per year of service |
| Fixed-Term Contract | Remaining wages for the contract term if terminated early |
Employers must adhere to these regulations to ensure compliance with local labor laws and avoid legal disputes.
Probation Periods
The probation period in Jordan typically lasts up to three months, during which either party can terminate the employment relationship without notice or compensation. If an employee continues working beyond this period, their contract will be considered indefinite.
Probation Period Guidelines
| Duration | Notice Requirements |
|---|---|
| Up to 3 months | No notice required |
Understanding these aspects of termination is essential for both employers and employees in Jordan. By adhering to these guidelines, employers can navigate the complexities of labor laws while ensuring fair treatment of their workforce.
Contractor Misclassification
In Jordan, the distinction between independent contractors and employees is crucial for legal and tax purposes. Misclassification occurs when an employer incorrectly labels an employee as a contractor, leading to potential legal ramifications. Understanding the differences is essential to avoid penalties and ensure compliance with local laws.
Key Differences Between Contractors and Employees
Independent contractors operate as self-employed individuals, providing services under specific contracts without the same obligations that employers have towards employees. Here are some of the primary differences:
| Aspect | Independent Contractor | Employee |
|---|---|---|
| Employment Status | Self-employed | Legally part of the company |
| Control | Operates independently | Works under employer’s supervision |
| Benefits | No statutory benefits | Entitled to benefits (e.g., health insurance, paid leave) |
| Tax Responsibilities | Responsible for own tax filings | Employer handles tax withholdings |
| Termination Rights | Contract-based, flexible | Subject to employment laws |
Misclassification can lead to significant liabilities for employers, including back payments for benefits and taxes. If a contractor is deemed to be functioning as an employee, the employer may be required to pay for unpaid wages, social security contributions, and other employee benefits.
Legal Considerations for Hiring Contractors
When hiring independent contractors in Jordan, it is important to draft clear contracts that outline the terms of engagement. Key elements to include are:
- Scope of Work: Clearly define the services to be provided.
- Payment Terms: Specify rates and payment schedules.
- Intellectual Property Rights: Address ownership of any work produced.
- Confidentiality Clauses: Protect sensitive business information.
- Termination Conditions: Outline how either party can terminate the contract.
Properly structured contracts help mitigate risks associated with misclassification and ensure that both parties understand their rights and obligations.
Risks Associated with Misclassification
Misclassifying employees as independent contractors can result in several risks, including:
- Legal Penalties: Employers may face fines or legal action if found in violation of labor laws.
- Financial Liabilities: Potential back payments for unpaid wages, taxes, and benefits owed to misclassified workers.
- Reputation Damage: Legal disputes can harm a company’s reputation and employee relations.
To avoid these risks, employers should regularly review their classifications and ensure compliance with local regulations.
Visa Requirements
When hiring foreign employees in Jordan, obtaining the appropriate work visa is essential. The most common visa for expatriates is the Work Permit, which allows non-Jordanians to work legally in the country. The process involves several steps, including securing a job offer from a Jordanian employer and submitting the necessary documentation to the Ministry of Labor.
Key Steps for Obtaining a Work Visa
| Step | Description |
|---|---|
| Job Offer | Must have a valid job offer from a Jordanian employer. |
| Documentation | Submit required documents, including passport, medical certificate, and employment contract. |
| Ministry Approval | Obtain approval from the Ministry of Labor. |
| Residency Permit | Apply for a residency permit upon receiving the work visa. |
It is important for employers to ensure that foreign employees have the correct visas to avoid legal complications.
Local Work Culture
Understanding the local work culture in Jordan is vital for fostering a positive work environment. Jordan’s work culture is influenced by its Middle Eastern heritage, which emphasizes respect, hierarchy, and strong interpersonal relationships.
Cultural Considerations
| Aspect | Description |
|---|---|
| Hierarchical Structure | Respect for authority and seniority is crucial; decisions often follow a top-down approach. |
| Work Ethic | Employees are generally hardworking and value commitment to their roles. |
| Communication Style | Direct communication is appreciated, but politeness and respect are paramount. |
Employers should foster an inclusive workplace that respects these cultural nuances to enhance employee satisfaction and productivity.
Religious Practices and Customs
Jordan is a predominantly Muslim country, and understanding local religious practices and customs is essential for creating an accommodating work environment. Key observances include:
Major Religious Observances
| Religion | Key Observances |
|---|---|
| Islam | Ramadan (month of fasting), Eid al-Fitr, Eid al-Adha |
| Christian | Christmas Day, Easter |
During Ramadan, many Muslim employees may fast from dawn until sunset, which can affect working hours and productivity. Employers should be sensitive to these practices when scheduling meetings or events.
Reviewed by
Last reviewed
March 23, 2026
Sources
Reviewed by PIO Compliance Research Team against public labor, payroll tax, social contribution, leave, termination, and employer compliance references relevant to the approved country guide set.
Referenced sources
LMP disclosure note
Labor authorityJurisdiction: Jordan
Publisher
Ministry of Labour
Checked
March 23, 2026
Electronic Services in Income and Sales Tax Department
Tax and payroll authorityJurisdiction: Jordan
Publisher
Income and Sales Tax Department
Checked
March 23, 2026
