Social Security in Jordan: What Employers Need to Know

For employers, understanding social security is relevant when calculating payroll, managing employee records and meeting applicable contribution and reporting requirements.

For international companies hiring in Jordan, this can be unfamiliar territory, particularly when the company does not have its own local payroll or HR function.

This guide provides a general overview and explains why social security should be considered as part of the employment structure.

What Is Social Security in Jordan?

Jordan’s social security system is administered by the Social Security Corporation (SSC).

The system provides social protection through different insurance programs established under the applicable Social Security Law.

The law covers matters including social security contributions and insurance branches such as old-age, disability and death, work injuries and other applicable protections.

The exact coverage and contribution treatment depend on the employee and circumstances.

Why Does Social Security Matter to Employers?

Social security is not simply an employee deduction.

Employers may have their own contribution obligations and responsibilities relating to registration, calculation, payment and records.

The Social Security Law sets out employer and insured-person contribution obligations and related administrative requirements.

This means social security should be incorporated into the employer’s payroll process from the beginning.

Who Handles Social Security Administration?

The responsibility depends on the employment structure.

If a company employs workers directly through its own Jordanian entity, the company generally needs to manage the applicable employer responsibilities.

If an employee is employed through an EOR, the EOR can support the relevant employment administration according to the agreed arrangement.

The exact responsibilities should be confirmed before employment begins.

What Happens If an Employee Joins During the Year?

Payroll and social security administration may need to account for the employee’s actual employment period.

The Social Security Law contains provisions concerning how contributions are calculated for employees joining during the year and how employer and insured contributions are handled.

The payroll process should therefore capture the employee’s actual start date and relevant employment information.

What Records Should Employers Maintain?

Employers should maintain appropriate employment and payroll records supporting the social security process.

Depending on the employment structure, this may include:

• Employee identification information
• Employment documentation
• Compensation information
• Payroll records
• Contribution records
• Relevant registration information
• Supporting documentation

Good recordkeeping helps the employer manage payroll and respond to administrative requirements.

Social Security Through an EOR

An EOR can help companies manage the employment administration associated with social security.

Depending on the engagement, the EOR may support:

• Employee registration
• Payroll calculations
• Contribution administration
• Reporting
• Employment records
• Related employee documentation

The exact service scope depends on the agreement and applicable requirements.

Social Security and Foreign Employees

Foreign employees may be subject to specific requirements depending on their circumstances and applicable rules.

This should be assessed alongside work authorization and employment requirements.

Jordan’s Ministry of Labour currently publishes dedicated guidance for non-Jordanian workers and work permits.

Employers should therefore assess the employment structure as a whole rather than treating social security separately from work authorization and payroll. See Can a Foreign Company Hire Employees in Jordan? for the wider picture.

Common Mistakes to Avoid

Assuming one contribution rate applies to everyone

The applicable treatment should be verified against the current rules and employee circumstances.

Treating social security as only an employee deduction

Employer responsibilities can also apply.

Leaving registration until after payroll starts

The appropriate registration process should be addressed as part of onboarding.

Using outdated payroll information

Social security rules and administrative requirements can change.

Not defining responsibility

When multiple organizations are involved, responsibility for registration, payroll and records should be clearly established.

How Hire.BA Can Support You

For companies using an EOR structure, Hire.BA can support the employment administration associated with payroll and statutory requirements according to the agreed service scope.

For companies that already have their own employment structure, workforce support can also be explored depending on the requirement.

Frequently Asked Questions

Is social security mandatory in Jordan?

Applicability depends on the employee and employment circumstances. Employers should assess the current requirements for the specific employment relationship.

Who pays social security contributions?

The applicable law provides for employer and insured-person contributions. The actual amounts and treatment should be verified against the current requirements.

Is social security part of payroll?

It can be part of payroll administration because applicable contributions may need to be calculated and processed through the payroll cycle.

Does an EOR handle social security?

Depending on the EOR arrangement, the EOR can support the relevant registration, contribution and administrative processes.

Does social security apply to foreign employees?

The answer depends on the employee’s circumstances and applicable rules. Foreign-worker requirements should be assessed together with employment and work authorization requirements.