Employer Of Records Services In Jordan

Grow Your Business With Edge

Although Jordan is a small country, it is considered an oasis of stability in the Middle East. With approximately 89,342 sq. km and 11.5 million population, the country is attracting international businesses due to its efficient workforce. The country is also a popular tourist destination and has a well-developed medical sector. In spite of the fact that the country runs short of natural resources, its workforce, upper-middle-class economy, and immigrants have made a positive inclination toward the nation’s advancement.

Despite all these facts, hiring a global team employees in Jordan is a time-consuming process. Choosing the right candidates and managing their payroll are equally important. Both these processes consume time, money, and energy, which results in the reduction of your business efficiency. So it is always ideal to choose the right EOR partner in Jordan. Partnering with EOR services in the Kingdom of Jordan will be a great decision. At Edge, we help you hire talent globally, and ensure they are paid at the right time. We help you to focus on your core business and management systems rather than wasting time on recruiting the right people.

Benefits Of Utilizing An EOR Solution In Jordan

Leveraging Employer of Records services in Jordan can help you mitigate risk and ensure compliance with the laws and regulations in the country. At Edge, we advise you on the complexities involved in hiring local as well as international employees, and guide you through the process. We also do the legwork to help you maintain Jordanian labor law compliance.

Cost Optimization

Employing an in-house HR department and payroll services is time-consuming and costly for small businesses and start-ups. Edge’s EOR services is a cost-effective alternative to this. We provide expert advisors and compliance tasks at a very reasonable price without compromising the quality of service.

Local Expertise

Edge Global HR Services has established its roots in this field for years. We have an in-depth knowledge of the local labour market in Amman, employment practices and regulatory landscape in the Kingdom of Jordan. Thus, we can guide you on the right path to international hiring employees in the country and maintaining international compliance.

Compliance With The Laws

Jordan has strict and complex labour laws. Coping with these laws and regulations will be difficult, especially for a newly established company in the country. Edge’s EOR services will help you comply with laws surrounding working hours, wages, benefits and bonuses, onboarding, and termination procedures, and help you draft locally compliant labor contracts, thereby saving you from heavy penalties.

Flexibility

As an EOR provider, our services are greatly flexible. We help you to hire cross-border as well as local employees without setting up your HR infrastructure. This makes a perfect choice for companies who are newly entering the market. We also handle the legal risks, HR functions, global payroll processing, benefits administration, and tax withholding.

Local Labor Laws To Follow When You Hire Employees Overseas

The laws regarding employment in Jordan are governed by Labour Law No. (8) of 1996, which was amended recently in 2019. The law has a keen outlook on various employment aspects, such as wages, leaves, retirement, working hours, termination procedures, and so on.

Minimum Wage

Employers are required to pay employees the minimum salary determined by the Jordanian government. The cost of living and changes in the economy are taken into account when determining the minimum wage. If an employer underpays an employee, they will be fined and have to make up the difference in payment to the employee. Each time the offense is repeated, the penalty is doubled. Jordan is also stringent in the equality of wages. According to the latest amendment, the nation completely opposes gender-based wage inequality. The minimum wage fixed is 268 Jordanian dinars per month, but is always subject to change.

ساعات الدوام

In Jordan, a workweek consists of 48 hours, usually divided into six days. Work completed outside of regular business hours is considered overtime. The employer must pay the employee for overtime that is on par with the law.

Leaves In Jordan

There are several employees left in Jordan. This includes annual leave, sick leave, maternity leave, and other public holidays.

Workers are eligible for paid time off every year for 14 days and 21 days after five years. Employees are entitled to fourteen days of paid sick leave per year, generally with a medical certification. If an employee is hospitalized, they are entitled to an extra 14 days of paid sick leave; if they are not hospitalized but have a medical report, they are entitled to half pay.

In Jordan, female workers are entitled to ten weeks of paid maternity leave. If necessary, this leave may be extended for an additional thirty days without pay due to childbirth-related medical issues.

Maternity leave can be taken before and after the delivery, with the employee and employer deciding when to begin. Companies that employ more than 20 women are required to pay for a nurse and nursery to be provided on-site. Every year after maternity leave, the employer needs to grant the new mother an hour off so she can care for her child.

Fathers who work have the right to three days of paid paternity leave.

Public Holidays

• New Year’s Day
• Good Friday
• Easter Monday
• Eid-al-Fitr
• Eid-al-Adha
• Labor day
• Ramadan
• Independence Day
• Issra-wa-Miraj
• Christmas Day

Taxes

Income Tax

Jordan follows a progressive income tax system. Higher incomes are subject to higher tax rates, which are depending on income levels.

Corporate Taxes

CIT rates are set in Jordan according to the type of business or industry that generates income for the taxpayer. The income tax law specifies the following CIT rates:

That comes to 35 % for banks.

Businesses involved in the production and distribution of energy, insurance and reinsurance, telecommunications, financial intermediation (including exchange and financing leasing companies), and raw material mining operations are all subject to a 24% tax rate.

Tax rates for other enterprises are 20%.

Companies with headquarters in Jordan are not required to pay capital gains tax (CIT) on their worldwide income unless it comes from Jordanian deposits and funds, in which case it is subject to a 10% tax.

Apart from these, Jordan introduced a VAT system in 2019, which is levied at 16% on goods and services.

Employees are also required to make contributions to the Social Security Corporation (SSC). The amount to be contributed is calculated as a percentage of the employee’s salary, with rates varying based on the employee’s industry and nationality.

These taxes are a hurdle for employee recruitment in Jordan. Choosing the right Employer Of Record (EOR) partner in Jordan can help with onboarding and offboarding employees. Edge also provides proper payroll management services. This can help in hiring employees overseas and meeting international compliance.

Employment Contracts

When you hire in Jordan, employment contracts need to be drafted in Arabic, with one original copy for each party. If the worker is not a foreign national, the foreign worker’s Arabic contract needs to have a third signed translated copy attached to it.

There are two kinds of contracts in Jordan. An indefinite contract begins on a date and ends when the employee’s job ends. It does not have an expiration date. A fixed-term agreement has start and end dates.

Companies who want to hire an international worker must apply to the Ministry of Labour and provide an annual updated bank sponsorship.

Time, money, and effort must be invested in setting up an organization in Jordan to hire a team. Strong worker employment protections are provided by Jordan’s labor laws, which call for close attention to detail and a comprehensive understanding of regional best practices. Growing into Jordan is easy and straightforward with Edge. Without causing you the headache of setting up a foreign branch office or subsidiary, we can help you hire the people you want, handle payroll and HR, and make sure local laws and regulations are met. You can concentrate on managing your company by using our PEO and Global Employer of Record services in Jordan, which provide you peace of mind.