[Updated 6/13/23] The country’s social security pension scheme is the most important employee benefit in Jordan for Jordanian nationals. Foreign employees, who account for 10% of Jordan’s workforce, see housing and transportation allowances as their most important employee benefit.
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Mandatory benefits in Jordan
Jordan requires that all visitors have a valid health insurance policy for the duration of their time in the country. In addition, U.S. citizens traveling to Jordan are required to register on the country’s e-platform, Gateway2Jordan, prior to arrival. Doing so will provide travelers with a QR code that will be needed to enter the country.
Average cost for employer-sponsored benefits
For Jordanian nationals only, a compulsory employee benefit for the social security pension scheme of 21.75% of gross monthly salary must be paid (7.5% is paid by the employee). The average monthly salary is JOD 500.
Further benefits may include housing and transportation allowance and health and life insurance. Regulations regarding a new health insurance scheme are still unclear.
Public healthcare in Jordan is funded by the government and mandatory contributions from the country’s workforce (monthly deduction is taken from the salaries of all employees in Jordan). These employees are then granted access to social security, which entitles them to free or subsidized healthcare.
According to the World Bank, Jordan is ranked first in the MENA region as the best healthcare service provider and a top destination for medical tourism. Physicians tend to be Western-educated and well-regarded.
The biggest trend impacting employee benefits in Jordan is the nationalization of the Jordanian workforce. As of the middle of 2022, the Jordanian labor force participation rate sat at 33.5%, with women at 14.2%, one of the lowest rates in the world.
According to The World Bank, “In 2022, Jordan launched a new Vision for Economic Modernization to target growth and opportunities over the next 10+ years for the country as well as a Public Sector Modernization Plan. Both processes will also guide inclusive and resilient growth and development efforts moving forward.”
As most of the workforce in Jordan is national, with high qualifications and skills in all lines of work, Jordan is one of the most highly educated countries in the region.
Personal income tax in Jordan is applied on all incomes above JOD 9,000, which applies to most of the workforce.