Guide to Hiring Employees in Jordan

As businesses expand globally, understanding the intricacies of hiring employees in different countries becomes imperative. In this guide, we will delve into the specifics of hiring employees in Jordan, a country situated in the heart of the Middle East with a burgeoning economy and a rich cultural heritage. From legal requirements to cultural nuances, this guide aims to provide a comprehensive overview for businesses planning to hire in Jordan.

Understanding the Labor Market in Jordan

Before delving into the hiring process, it’s essential to grasp the labor market landscape in Jordan. Jordan has a relatively young population, with a median age of around 23 years. The majority of the workforce is employed in the services sector, followed by industry and agriculture. The country has a skilled workforce, particularly in fields such as technology, engineering, healthcare, and finance.

However, it’s important to note that Jordan faces challenges such as high unemployment rates, particularly among youth and women. This is largely due to factors like rapid population growth, limited job opportunities, and skill mismatches. Despite these challenges, Jordan remains an attractive destination for businesses looking to tap into the Middle Eastern market.

Legal Framework for Employment in Jordan

Understanding the legal framework is crucial when hiring employees in Jordan. The primary legislation governing employment relationships in Jordan is the Jordanian Labor Law No. (8) of 1996 and its subsequent amendments. Here are some key aspects to consider:

Employment Contracts: According to Jordanian labor law, employment contracts can be either written or oral. However, it is highly recommended to have written contracts in Arabic, detailing the terms and conditions of employment, including salary, working hours, benefits, and termination clauses.
Working Hours: The standard working week in Jordan consists of 48 hours, typically spread over six days. Friday is the official day of rest. However, certain sectors or industries may have different working hours as per their specific regulations.
Minimum Wage: Jordan has a minimum wage requirement set by the government, which is periodically adjusted. Employers must ensure that they comply with the minimum wage regulations to avoid legal penalties.
Probation Period: Employers in Jordan can specify a probationary period in employment contracts, during which either party can terminate the employment relationship without notice or compensation.
Termination and Severance: Termination of employment in Jordan is regulated by law and can be based on various grounds such as mutual agreement, expiration of contract, or disciplinary reasons. Severance pay may be required depending on the circumstances of termination.
Work Permits: Foreign nationals seeking employment in Jordan must obtain a work permit from the Ministry of Labor. Employers are typically responsible for facilitating this process and ensuring that their foreign employees have the necessary documentation.

Recommended Employer of Record Services in Jordan:

How to Hire Employees in Jordan?

Hiring processes in Jordan typically follow a structured approach that takes into account both legal requirements and cultural norms. Here’s an overview of the typical steps involved in the hiring process in Jordan:

1. Job Posting and Recruitment:

Companies in Jordan typically advertise job vacancies through various channels such as online job portals, newspapers, social media, and recruitment agencies. The job postings usually include detailed information about the job role, qualifications required, responsibilities, and other relevant details.

2. Application Submission:

Interested candidates submit their applications either through the company’s website, via email, or in person. Applications typically include a resume (CV) and a cover letter outlining the candidate’s qualifications, skills, and experience relevant to the job.

3. Initial Screening:

Once applications are received, the hiring team reviews them to shortlist candidates who meet the basic requirements of the job. This initial screening may involve checking qualifications, experience, and skills mentioned in the CVs.

4. Interviews:

Shortlisted candidates are invited for interviews, which may include multiple rounds. Interviews can be conducted face-to-face, over the phone, or via video conferencing. In Jordan, interviews often focus not only on the candidate’s technical skills but also on their personality, communication style, and cultural fit within the organization.

5. Assessment Tests:

Depending on the nature of the job, companies in Jordan may conduct assessment tests or exercises to evaluate candidates’ technical skills, problem-solving abilities, or language proficiency.

6. Reference Checks:

Before making a final decision, employers in Jordan may conduct reference checks to verify the candidate’s employment history, qualifications, and character.

7. Offer Letter:

Once a suitable candidate is identified, the employer extends a formal job offer in writing. The offer letter typically includes details such as the job title, salary, benefits, start date, and any other relevant terms and conditions of employment.

8. Contract Signing:

Upon acceptance of the job offer, the candidate and the employer sign an employment contract outlining the rights and obligations of both parties. In Jordan, employment contracts are legally binding and must comply with labor laws and regulations.

9. Probation Period:

Many companies in Jordan have a probationary period for new employees, during which their performance is closely monitored. At the end of the probation period, the employer may confirm the employee’s permanent status or terminate their employment if performance is unsatisfactory.

10. Onboarding:

Once hired, the new employee undergoes an onboarding process to familiarize themselves with the company’s policies, procedures, culture, and job responsibilities. This may include orientation sessions, training programs, and introductions to colleagues.

Interviewing Process in Jordan

The interviewing process in Jordan typically follows a structured format, influenced by cultural norms and professional standards. Here’s an overview of the typical steps involved in the interviewing process in Jordan:

Resume Screening: The initial step involves reviewing resumes or CVs submitted by applicants to shortlist candidates who meet the basic job requirements. This screening process may be conducted by HR professionals or hiring managers.
Phone Screening: Once candidates are shortlisted, they may undergo a phone screening interview. This preliminary interview is often conducted by a member of the HR team and serves to assess candidates’ communication skills, interest in the position, and availability for further interviews.
In-person Interviews: Candidates who pass the phone screening are invited for in-person interviews. Depending on the organization, there may be multiple rounds of interviews with various stakeholders such as HR representatives, department heads, and potential team members.
Technical Assessment or Testing: Some companies may require candidates to undergo technical assessments or tests relevant to the job role. This could involve written tests, practical exercises, or presentations to evaluate candidates’ skills and knowledge.
Behavioral Interviews: Behavioral interviews are common in Jordan and focus on assessing candidates’ past behavior and experiences as indicators of future performance. Interviewers may ask situational questions to gauge how candidates have handled specific work-related scenarios in the past.
Cultural Fit Assessment: Employers in Jordan often prioritize cultural fit when making hiring decisions. Interviewers may assess candidates’ compatibility with the organization’s values, work culture, and team dynamics during the interview process.
Reference Checks: After the interviews, employers may conduct reference checks to verify candidates’ qualifications, work experience, and professional conduct. This typically involves contacting the candidate’s former supervisors or colleagues to gather insights into their performance and character.
Offer Stage: Once a suitable candidate is identified, the employer extends a job offer outlining the terms and conditions of employment, including salary, benefits, and start date. Negotiations may occur during this stage, particularly regarding compensation and other employment terms.
Onboarding: After accepting the job offer, the new hire goes through the onboarding process, which includes completing paperwork, receiving training, and familiarizing themselves with company policies and procedures.

The Onboarding Process in Jordan

The onboarding process in Jordan follows a similar structure to many other countries but may have specific nuances due to cultural, legal, and organizational factors. Here’s a general outline of what an onboarding process might look like in Jordan:

Pre-employment Documentation: Once a candidate accepts a job offer, they may need to provide certain documents such as identification, educational certificates, and possibly a work permit or residency documentation if they are not Jordanian nationals.
Orientation and Welcome: On the first day, the new employee is typically welcomed by HR or their manager. They may receive an orientation session introducing them to the company culture, values, and policies. This might include a tour of the office or facilities.
Paperwork and Legal Formalities: The new employee will likely be required to fill out various forms related to employment, taxation, and benefits enrollment. This could include providing banking details for salary payments and signing contracts.
Training and Development: Depending on the role, the employee may undergo training sessions to get acquainted with their responsibilities, software systems used by the company, and any specific job-related skills. This training could be provided by HR, the employee’s manager, or designated trainers within the organization.
Introduction to Team and Colleagues: The new employee will meet their team members and possibly other colleagues within the organization. This is an opportunity for informal introductions and networking.
Setting Expectations: The manager will typically have a one-on-one meeting with the new employee to discuss job expectations, performance goals, and any questions or concerns the employee may have.
Integration into Work: The employee will start working on their assigned tasks/projects under the guidance of their manager. They may be given a mentor or buddy to provide additional support during the initial days.
Follow-up and Feedback: HR or the manager may schedule periodic check-ins with the new employee to see how they are settling in and address any issues or questions they may have. Feedback on performance may also be provided during these check-ins.
Cultural Sensitivity: Given the diverse cultural landscape in Jordan, companies may emphasize cultural sensitivity training to ensure that employees understand and respect each other’s backgrounds and traditions.
Compliance and Regulations: Throughout the onboarding process, emphasis is placed on compliance with labor laws and regulations in Jordan. This includes ensuring that the employee’s contract adheres to local labor laws regarding working hours, leave entitlements, and other employment conditions.
Continuous Support: The onboarding process doesn’t end after the first few days or weeks. Continuous support, feedback, and opportunities for growth and development should be provided to help the new employee integrate fully into their role and the company culture.

Cultural Considerations

Understanding the cultural nuances of Jordan is essential for establishing successful working relationships with employees. Jordanians value personal relationships and trust in business dealings. Building rapport and demonstrating respect are crucial elements of conducting business in Jordan.

Additionally, the concept of wasta, or connections, plays a significant role in Jordanian society. It refers to using personal connections or influence to achieve goals or overcome obstacles. Employers should be aware of this cultural aspect and understand its implications in the workplace.

Moreover, respecting Islamic values and traditions is important in the workplace, particularly during religious holidays and observances. Employers should accommodate employees’ religious practices and provide a culturally sensitive work environment.

Types of Employment Contracts in Jordan

In Jordan, employment contracts are governed by the Labor Law No. (8) of 1996 and its amendments. These laws outline the various types of employment contracts that can be established between employers and employees. Here are the main types of employment contracts in Jordan:

Fixed-Term Contracts: These contracts specify a definite period during which the employment relationship will last. Fixed-term contracts are commonly used for temporary or project-based work. Employers and employees agree on the duration of the contract, which can range from a few months to a few years. Once the contract term expires, the employment relationship automatically ends unless renewed by mutual agreement.
Indefinite Term Contracts: Unlike fixed-term contracts, indefinite term contracts do not have a specified end date. Instead, they continue until terminated by either party in accordance with the provisions of the labor law or by mutual agreement. Indefinite term contracts are often used for permanent positions where the employment is expected to continue for an indefinite duration.
Part-Time Contracts: Part-time contracts are employed when employees work fewer hours than full-time employees. These contracts specify the number of hours an employee is expected to work per week or month. Part-time employees are entitled to benefits and protections under Jordanian labor laws, although they may differ from those provided to full-time employees.
Probationary Contracts: Probationary contracts are used to assess an employee’s suitability for a permanent position during a trial period. These contracts typically have a shorter duration compared to regular employment contracts, during which the employer evaluates the employee’s performance, skills, and fit for the job. If the employee successfully completes the probationary period, they may be offered a permanent position.
Seasonal Contracts: Seasonal contracts are common in industries such as agriculture and tourism, where work is tied to specific seasons or periods of high demand. These contracts are typically of fixed-term nature and are renewed as needed during peak seasons. Seasonal employees are entitled to rights and benefits as per Jordanian labor laws, including provisions for overtime pay and social security contributions.
Project-Based Contracts: Project-based contracts are similar to fixed-term contracts but are specifically tied to a particular project or assignment. These contracts outline the scope of work, duration, and deliverables associated with the project. Once the project is completed, the employment relationship ends unless there are provisions for renewal or extension.
Casual Contracts: Casual contracts are often used for irregular or intermittent work arrangements where there is no guarantee of regular hours or continuity of employment. These contracts may be offered on an as-needed basis to meet temporary staffing requirements or to cover short-term work assignments.

Work Permits and Visas in Jordan

In Jordan, there are several types of work permits and visas available for individuals seeking employment opportunities within the country. These permits and visas are governed by Jordanian immigration laws and regulations. Here are some of the common types:

Employment Visa (Entry Visa): This visa is issued to individuals who have secured employment in Jordan. It allows them to enter the country legally for the purpose of work. The employment visa is typically sponsored by the employer and may have specific conditions attached, such as the duration of stay and the type of work permitted.
Work Permit: Once in Jordan, individuals holding an employment visa must obtain a work permit to legally work within the country. Work permits are issued by the Ministry of Labor and have various categories depending on the nature of the work and the qualifications of the applicant. These permits are usually valid for a specific period and may be renewable.
Temporary Work Permit: This permit is designed for individuals who are employed on a temporary basis or for short-term projects in Jordan. It allows them to work legally for a limited duration, usually not exceeding six months. Temporary work permits may be issued for specific projects or events.
Residence Permit (IQAMA): In addition to a work permit, individuals working in Jordan may need to obtain a residence permit, also known as IQAMA. This permit allows foreign nationals to reside legally in the country for the duration of their employment. Residence permits are typically linked to the validity of the work permit.
Investor Visa: Jordan offers investor visas for individuals who wish to invest in the country’s economy and create job opportunities. This visa allows foreign investors to reside and conduct business activities in Jordan. Requirements and eligibility criteria for investor visas may vary depending on the amount of investment and the nature of the business.
Freelancer Visa: Freelancers and self-employed individuals may apply for a special visa that allows them to work independently in Jordan. This visa category is suitable for professionals such as consultants, artists, writers, and others who do not have a traditional employer but wish to work in the country.
Seasonal Worker Visa: Jordan occasionally issues seasonal worker visas for individuals employed in seasonal industries such as agriculture or tourism. These visas are valid for a specific period and are subject to the approval of the relevant authorities.

Payroll and Taxes in Jordan

In Jordan, payroll and taxes are significant considerations for both employers and employees. Understanding the intricacies of the tax system and payroll regulations is crucial for compliance and effective financial management. Here’s an overview:

Payroll Process in Jordan:

Salary Structure: Employers in Jordan typically structure salaries based on monthly payments. However, some companies might pay on a bi-monthly or weekly basis.
Basic Salary: The basic salary is the foundation of an employee’s compensation package. It’s important to ensure that this aligns with industry standards and any legal requirements.
Additional Benefits: Employers often provide additional benefits such as allowances for housing, transportation, health insurance, and other perks. These should be clearly outlined in employment contracts.
Overtime Pay: Employees who work beyond regular hours are entitled to overtime pay as per Jordanian labor laws. The rate for overtime is typically higher than regular pay.
Deductions: Various deductions may apply to an employee’s salary, including contributions to social security, income tax, and any other mandated deductions.
Bonuses and Incentives: Employers may offer bonuses or incentives based on individual or company performance. These should be clearly communicated and accounted for in the payroll process.

Taxation System in Jordan:

Income Tax: Jordan operates a progressive income tax system, with tax rates ranging from 5% to 30% depending on income levels. Non-residents are subject to a flat tax rate of 10% on income earned in Jordan.
Social Security Contributions: Both employers and employees are required to contribute to the Social Security Corporation (SSC). The contribution rates vary depending on the type of employment and the salary bracket.
Value Added Tax (VAT): Jordan introduced VAT in 2019. Currently, the standard VAT rate is 16%, with certain goods and services subject to reduced rates or exemptions.
Withholding Tax: Certain payments, such as dividends, interest, and royalties, are subject to withholding tax at varying rates.
Tax Returns: Employers are responsible for withholding taxes from employees’ salaries and remitting them to the tax authorities. Employees may also be required to file annual tax returns, depending on their income level and sources.
Tax Treaties: Jordan has tax treaties with several countries to prevent double taxation and promote international trade and investment.

Compliance and Reporting:

Record Keeping: Employers must maintain accurate records of employee salaries, taxes withheld, and other relevant payroll information for auditing purposes.
Reporting Requirements: Employers are required to submit periodic reports to tax authorities detailing employee salaries, taxes withheld, and other relevant information.
Filing Deadlines: It’s essential to adhere to filing deadlines for tax returns and other required reports to avoid penalties and fines.
Audits and Inspections: Tax authorities may conduct audits or inspections to ensure compliance with tax laws and regulations. Employers should be prepared to provide necessary documentation and cooperate with authorities during these processes.

Employee Benefits in Jordan

Employee benefits in Jordan can vary depending on the industry, company size, and individual employment contracts. However, there are several common benefits provided by employers in Jordan to attract and retain talent. Here are some key aspects of employee benefits in Jordan:

Social Security: Jordan has a social security system that provides benefits such as pensions, disability benefits, and healthcare coverage to eligible employees. Both employers and employees contribute to this system, with the employer typically deducting the employee’s portion from their salary.
Health Insurance: Many employers in Jordan offer health insurance coverage to their employees. This coverage may include medical treatment, hospitalization, prescription drugs, and sometimes dental and vision care. The level of coverage can vary depending on the employer and the specific insurance plan.
Annual Leave: Jordanian labor law mandates annual leave for employees, typically ranging from 14 to 21 days per year, depending on the length of service. Some employers may offer additional leave days or more generous leave policies as part of their employee benefits package.
Sick Leave: Employers in Jordan are required to provide paid sick leave to employees who are unable to work due to illness or injury. The amount of sick leave provided can vary depending on factors such as the length of service and the specific terms of employment contracts.
Maternity and Paternity Leave: Female employees in Jordan are entitled to maternity leave with full pay for a specified period before and after childbirth, as mandated by labor law. Some employers may offer additional benefits such as extended maternity leave or flexible work arrangements for new mothers. Paternity leave is also available for fathers, although it is typically shorter than maternity leave.
Bonus and Incentive Programs: Many employers in Jordan offer bonus and incentive programs to reward employees for their performance and contribution to the company’s success. These programs may include annual bonuses, profit-sharing schemes, or performance-based incentives.
Retirement Benefits: While Jordan’s social security system provides a pension for eligible employees, some employers also offer additional retirement benefits such as employer-sponsored retirement plans or provident funds. These benefits help employees save for retirement and provide financial security in their later years.
Training and Development Opportunities: Employers may invest in training and development programs to enhance the skills and capabilities of their employees. These programs can include workshops, seminars, online courses, and on-the-job training opportunities, helping employees advance their careers and improve their job performance.
Flexible Work Arrangements: Some employers in Jordan offer flexible work arrangements such as telecommuting, flextime, or compressed workweeks to help employees achieve a better work-life balance and accommodate their personal needs.
Employee Assistance Programs (EAPs): EAPs are becoming more common in Jordan, offering employees access to counseling, mental health support, financial planning assistance, and other resources to help them cope with personal or work-related challenges.

Holidays and Leave Policies in Jordan

In Jordan, holidays and leave policies are governed by the Labor Law and various regulations set by the government. Here are the types of holidays and leave policies commonly observed in Jordan:

Public Holidays: Public holidays in Jordan are established by the government and are typically observed nationwide. These holidays often include religious and national celebrations such as Eid al-Fitr, Eid al-Adha, Independence Day, and Christmas. The number of public holidays may vary from year to year and is subject to government announcements.
Annual Leave: The Labor Law in Jordan stipulates annual leave entitlements for employees based on their length of service. Generally, employees are entitled to a minimum of 14 days of annual leave after one year of continuous service. This entitlement increases with the length of service, with some companies offering up to 21 or 28 days of annual leave per year.
Sick Leave: Employees in Jordan are entitled to sick leave as per the Labor Law. The duration of sick leave and the compensation provided during this period depend on the length of service and the specific company policies. Usually, sick leave is granted upon presentation of a medical certificate issued by a qualified medical practitioner.
Maternity and Paternity Leave: Female employees are entitled to maternity leave under Jordanian law. The duration of maternity leave is typically around 10 weeks, with additional time granted in cases of medical necessity. Fathers are entitled to paternity leave as well, although it is usually shorter in duration compared to maternity leave.
Bereavement Leave: Employees may be entitled to bereavement leave in the event of the death of an immediate family member. The duration of bereavement leave and the conditions under which it is granted vary depending on the company’s policies.
Special Leave: Some companies may offer special leave for various reasons such as marriage, relocation, or religious observances not covered by public holidays. The duration and conditions of special leave are determined by the employer’s policies.
Unpaid Leave: Employees may request unpaid leave for personal reasons such as extended travel, educational pursuits, or family obligations. The granting of unpaid leave is at the discretion of the employer and is subject to company policies and the provisions of the Labor Law.
Military Service Leave: Employees who are called up for mandatory military service are entitled to leave from their employment during their service period. Employers are generally required to reserve the employee’s position and provide certain benefits during their absence.

Termination of Employment Procedure in Jordan

Termination of employment procedures in Jordan are governed by the Jordanian Labor Law, which outlines the rights and obligations of both employers and employees. Here is an overview of the termination process:

Valid Reasons for Termination: According to Jordanian labor laws, termination of employment must be justified by valid reasons, such as misconduct, poor performance, redundancy, or expiration of a fixed-term contract.
Notice Period: Employers are generally required to provide advance notice to employees before terminating their contracts, except in cases of gross misconduct. The notice period varies depending on the length of service and the terms of the employment contract. Typically, the notice period ranges from one to three months.
Severance Pay: In cases where termination is initiated by the employer, the employee may be entitled to receive severance pay. The amount of severance pay is determined by the length of service and other factors specified in the labor law.
End of Service Benefits: Upon termination, employees are entitled to receive end-of-service benefits, which include accrued but unused vacation days, gratuity, and any other entitlements as per the labor law or employment contract.
Documentation and Notification: Employers must provide written notification of termination to the employee, stating the reasons for termination and the effective date. This notification should be provided in accordance with the notice period specified in the labor law or the employment contract.
Exit Formalities: Employers are responsible for completing exit formalities, such as settling outstanding dues, returning company property, and providing relevant documents (e.g., end-of-service certificate, experience letter).
Appeals Process: Employees have the right to appeal their termination if they believe it was unjustified or unlawful. They may file a complaint with the Labor Court or seek mediation through the Ministry of Labor.
Legal Compliance: Employers must ensure that the termination process complies with all relevant labor laws and regulations to avoid legal repercussions.
Employee Rights: Throughout the termination process, employees retain certain rights, including the right to seek legal advice, challenge unfair dismissal, and claim entitled benefits.
Consultation and Communication: It is essential for employers to communicate openly and transparently with employees throughout the termination process, providing them with the necessary information and support.

What Jobs Are in Demand in Jordan?

The job market in Jordan was influenced by various factors including economic conditions, technological advancements, and social changes. While specific demands may vary over time, there are several sectors that traditionally have shown demand for skilled workers in Jordan:

Information Technology (IT) Sector: With the increasing digitalization of businesses and services globally, there’s a growing demand for IT professionals in Jordan. Roles such as software developers, cybersecurity experts, data analysts, and IT project managers are often in demand.
Healthcare Industry: Jordan’s healthcare sector has been expanding to meet the needs of its population and beyond. Medical professionals, including doctors, nurses, pharmacists, and healthcare administrators, are consistently in demand.
Education and Training: With a focus on improving the quality of education and lifelong learning, there’s a demand for qualified teachers, trainers, and educators across various levels of education, including schools, universities, and vocational training institutions.
Engineering: Jordan has seen infrastructure development projects in recent years, leading to a demand for engineers in various disciplines such as civil engineering, electrical engineering, mechanical engineering, and environmental engineering.
Finance and Banking: The financial sector in Jordan continues to evolve, creating opportunities for professionals in banking, finance, accounting, and auditing. With the growth of fintech, there’s also a demand for individuals with expertise in financial technology and digital banking.
Tourism and Hospitality: Jordan’s rich historical and cultural heritage attracts tourists from around the world, leading to opportunities in the tourism and hospitality industry. Jobs in this sector include hotel management, tour guides, event planners, and restaurant staff.
Construction and Real Estate: The construction industry plays a significant role in Jordan’s economy, driving demand for architects, project managers, surveyors, and construction workers. Similarly, the real estate sector requires professionals in property management, real estate brokerage, and urban planning.
Telecommunications: With the increasing reliance on communication technologies, the telecommunications sector in Jordan seeks professionals in network engineering, telecommunications infrastructure development, and customer support.
Renewable Energy: There’s a growing focus on renewable energy sources in Jordan to reduce dependence on fossil fuels. This creates opportunities for professionals in renewable energy technologies, energy management, and sustainable development.
Creative Industries: Jordan has a budding creative industry encompassing fields such as graphic design, advertising, filmmaking, and digital media production. Creative talents in these areas are sought after by agencies, studios, and production companies.

Why Hiring Talents in Jordan?

Hiring talent in Jordan offers numerous advantages for companies looking to expand their workforce or establish operations in the Middle East. Jordan, a country known for its strategic location, skilled workforce, and supportive business environment, presents several compelling reasons for businesses to consider when seeking to recruit top talent:

Strategic Location: Jordan’s geographical location at the crossroads of Asia, Africa, and Europe makes it an ideal hub for businesses looking to access markets in these regions. Its proximity to major markets such as the Gulf Cooperation Council (GCC) countries, Egypt, and Israel facilitates trade and business expansion.
Stable Economy: Jordan boasts a relatively stable economy compared to some of its neighbors, with a diverse range of industries including information technology, pharmaceuticals, tourism, and manufacturing. The government has implemented policies to encourage foreign investment and foster economic growth, creating a favorable environment for businesses.
Skilled Workforce: Jordan has a well-educated and skilled workforce, with a high literacy rate and a strong emphasis on education. The country is home to several reputable universities and technical colleges, producing graduates with expertise in various fields including engineering, IT, finance, and healthcare. Many Jordanian professionals are bilingual or multilingual, with proficiency in English, Arabic, and other languages, making them valuable assets for companies operating in international markets.
Cost-Effective Labor: While Jordan offers a skilled workforce, labor costs are relatively lower compared to some Western countries. This can be advantageous for companies looking to reduce operational expenses without compromising on quality.
Government Support: The Jordanian government has implemented initiatives to attract foreign investment and support businesses in various sectors. These initiatives include tax incentives, streamlined regulations, and investment promotion programs aimed at fostering entrepreneurship and economic development.
Cultural Compatibility: Jordanian culture places a strong emphasis on hospitality, respect, and collaboration, which align well with many corporate cultures. This cultural compatibility can contribute to a positive work environment and facilitate teamwork and communication within multinational organizations.
Infrastructure Development: Jordan has made significant investments in infrastructure development, including transportation networks, telecommunications, and utilities. This investment enhances connectivity and facilitates business operations, making it easier for companies to establish and expand their presence in the country.
Political Stability: Despite being situated in a volatile region, Jordan has maintained a level of political stability compared to some of its neighbors. The government has demonstrated a commitment to security and stability, providing a conducive environment for businesses to operate and thrive.

The Costs of Hiring Employees in Jordan

Hiring employees in Jordan entails various costs for employers, encompassing both direct financial expenses and indirect considerations. Understanding these costs is crucial for businesses planning to expand or establish operations in the country. Here’s an overview of the key expenses associated with hiring employees in Jordan:

Basic Salary: The most obvious cost is the employee’s salary. Jordan’s labor laws set minimum wage standards, which vary depending on the sector and the employee’s qualifications and experience. Employers must adhere to these regulations when determining salaries.
Social Security Contributions: Both employers and employees are required to contribute to the Social Security Corporation (SSC) in Jordan. The employer’s contribution rate is typically higher than the employee’s, and these contributions are calculated based on the employee’s salary.
Health Insurance: Employers are obligated to provide health insurance for their employees in Jordan. This insurance covers basic healthcare expenses and is a mandatory benefit.
End of Service Benefits: Employers must set aside funds for end-of-service benefits for their employees. These benefits are payable upon the termination of employment and are typically based on the length of service.
Work Permit Fees: Employers hiring foreign nationals in Jordan must obtain work permits for their employees. These permits come with associated fees, including application fees and renewal charges.
Recruitment and Training Costs: Finding and hiring qualified employees often incurs expenses related to recruitment agencies, job postings, and candidate evaluation processes. Additionally, employers may need to invest in training programs to onboard new employees effectively.
Employee Benefits: In addition to salaries, employers often provide various benefits to attract and retain talent. These benefits may include paid leave, bonuses, allowances (such as transportation or housing allowances), and other perks.
Taxes: Employers in Jordan are subject to various taxes related to employment, such as income tax and social security contributions. These taxes can significantly impact the overall cost of hiring and retaining employees.
Workspace and Equipment: Providing a suitable workspace and necessary equipment for employees also constitutes a cost for employers. This includes expenses related to office rent, utilities, furniture, and technology infrastructure.
Compliance Costs: Employers must comply with labor laws and regulations in Jordan, which may require additional administrative expenses to ensure legal compliance.
Employee Turnover Costs: High turnover rates can be costly for businesses due to recruitment, training, and lost productivity. Employers may incur expenses related to replacing employees who leave the organization.
Legal and Administrative Expenses: Employers may need to engage legal or HR services to handle employment-related matters such as drafting contracts, resolving disputes, or navigating labor regulations.

How to Use an Employer of Records (EOR) in Jordan?

Using an Employer of Records (EOR) in Jordan can be a strategic decision for businesses seeking to expand their operations into the country without establishing a legal entity. To effectively utilize an EOR in Jordan, businesses should first conduct thorough research to identify reputable EOR service providers with a strong understanding of local employment laws and regulations. Once a suitable EOR is selected, the following steps can guide businesses in utilizing their services.

Firstly, businesses need to negotiate and sign a comprehensive agreement with the chosen EOR. This agreement should outline the scope of services, responsibilities, fees, and any other relevant terms and conditions. Clear communication and transparency are essential to ensure mutual understanding and alignment of expectations between the business and the EOR.

Secondly, businesses should provide necessary information and documentation to the EOR to facilitate the onboarding process for employees. This may include legal documents, such as employment contracts, identification papers, tax forms, and any other relevant paperwork required by local authorities. Ensuring compliance with local regulations is crucial to avoid any legal issues or penalties.

Once employees are onboarded, businesses can rely on the EOR to manage various HR functions, including payroll processing, tax withholding, benefits administration, and compliance with labor laws. This allows businesses to focus on their core operations while ensuring that their employees in Jordan are properly supported and compliant with local regulations.

Additionally, businesses should maintain open communication with the EOR to address any concerns or issues that may arise during the employment relationship. Regular updates and meetings can help foster a collaborative working relationship and ensure that any challenges are promptly addressed and resolved.

Overall, leveraging an Employer of Records (EOR) in Jordan can provide businesses with a flexible and efficient solution for expanding their workforce and operations in the country. By partnering with a reputable EOR and following proper procedures, businesses can navigate the complexities of local employment regulations while focusing on their growth and success in the Jordanian market.

Read More Hiring Guides: