Expand your organization into Jordan, with or without a Jordanian entity
The historic Arab nation of Jordan has long been an attractive site for foreign investment, partly due to its skilled workforce, relative political stability, and convenient location in proximity to other Middle Eastern countries. Many companies look to gain a foothold in the region by expanding into Jordan, but it can be a long and complicated process. If you are planning an expansion into Jordan, the language barrier, unique regulatory framework, and cultural differences could all potentially lead to delays.
A popular way of bypassing the complex administrative procedures is to outsource to a global professional employer organization (PEO). At New Horizons, our tailored PEO, employer of record, and payroll services are designed specifically to help organizations of all kinds expand abroad faster and more efficiently, including into Jordan.
Our in-house recruitment team can even find, recruit, and onboard your local workforce, as well as handling any ongoing HR administration. Our team will provide everything you need to expand into Jordan rapidly, while potentially saving you thousands in setup costs.
Our Jordan PEO simplifies your expansion
New Horizons enables your business to expand its operations into Jordan – without setting up a legal subsidiary.
Hiring in Jordan: Employment law overview
Employment contracts in Jordan
Employers in Jordan can hire with verbal or written employment contracts, but we strongly recommend always providing formal written contracts. These contracts should all cover any details of the employment, such as compensation, working hours, duties, and so on. Contracts should be written in Arabic and reference the local currency of the Jordanian dinar.
Working hours in Jordan
The typical working week in Jordan is limited to 48 hours over six days. Any work beyond this should be paid at overtime rates of between 1.25 and 1.5x normal pay.
Public holidays in Jordan
There are several public holidays in Jordan annually. Many employees receive the following days as leave from work:
- New Year’s Day
- Labor Day
- Independence Day
- The Prophet’s Birthday
- Christmas DayEid-al-Fitr
Vacation leave in Jordan
Employees in Jordan are entitled to 14 days of vacation leave every year. This allowance increases to 21 days after five years of service with an employer.
Sick leave in Jordan
Employees in Jordan can take up to 14 days of paid sick leave annually as standard. If they require a hospital stay, this period can be extended by a further 14 days.
Parental leave in Jordan
Female employees in Jordan are entitled to 10 week of paid maternity leave.
Terminations and severance in Jordan
The notice period prior to terminations in Jordan is generally one month.
Taxation in Jordan
Income tax for employees in Jordan is progressive, with rates between 5% and 30% depending on income level. Anybody earning over 200,000 dinars per year must pay an additional 1% national tax.
The corporate tax rate in Jordan is 20% for most companies, but there are different rates for specific types of businesses such as banks.
Health coverage in Jordan
Jordan’s healthcare system is state-funded, so employers do not need to offer private medical insurance as a benefit.
Jordan compensations & benefits
Compensation laws in Jordan
The minimum wage for employees in Jordan is 190 dinars per month (as of 2020).
Benefits management in Jordan
Setting up a benefits system for your employees in Jordan can be difficult to navigate, especially if you are unfamiliar with the country and its laws. If you want to tackle the setup independently, you can expect it to take several weeks and potentially cause delays to your expansion process.
At New Horizons, we specialize in establishing and running Jordanian employee benefits systems. We’ll handle everything, using our experience to ensure you are ready to commence operations in Jordan quickly and efficiently.
New Horizons will help you expand your business into Jordan faster
New Horizons’ Jordan-specific PEO, employer of record, and payroll outsourcing can provide your business with everything needed to start trading in Jordan rapidly and compliantly. Our team of Jordan experts will help you set up your operation and begin trading in Jordan in as little as 48 hours, and could save you over 80% in expansion expenditure, whether or not you’ve already registered an entity in the country.
Our team can take care of your business’ expenses, payroll, benefits, and legal compliance in Jordan, as well as all HR work. As the only global PEO with an in-house recruitment team, we can also find and recruit your local employees, utilizing our Jordanian subsidiary to act as employer of record so you don’t need to establish a Jordanian entity.
Get in touch to learn how our outsourcing services can help you to seamlessly expand into Jordan.