Expatriate Employment in Jordan

A Regulatory and Compliance Guide for International Companies Employers hiring non-Jordanian personnel in Jordan must comply with the requirements of the Ministry of Labor (MOL), the Ministry of Interior (MOI), the Social Security Corporation (SSC), the Income and Sales Tax Department (ISTD), and any professional or sector-specific regulatory authority. The employment process is generally employer-led. A non-Jordanian national should not begin working in Jordan until the required work authorization, residence status, and any professional approvals have been obtained. “Important: Jordanian work-permit rules are updated through ministerial decisions, instructions, and amendments. The applicable requirements should therefore be confirmed with the Ministry of Labor before filing an application.” 1. Immigration and Work Authorization Framework The general process for employing a non-Jordanian employee is: Employer prepares application ➔ Ministry of Labor approval and work permit ➔ Ministry of Interior and residence procedures, where applicable ➔ Employee begins work only after authorization is complete A work permit is not the same as a residence permit. The work permit authorizes employment, while the residence permit authorizes the employee to remain legally in Jordan for the relevant period. Employer Sponsorship In most cases, the work permit application is submitted by the Jordanian employer, establishment, branch, company, or other eligible sponsoring entity. The permit normally identifies: • The employee; • The employer or establishment; • The authorized profession; • The permit period; and • The applicable work location or sector, where relevant. The employee must not work for a different employer or in a different profession unless the Ministry of Labor approves the relevant transfer, amendment, or new permit. The employer must obtain the appropriate Ministry of Labor authorization before a non-Jordanian employee begins working in Jordan. Jordan generally distinguishes between regular work permits, which are available for professions classified as permitted or unrestricted for non-Jordanian workers, and specialized skills work permits, which provide a broader route for employing qualified foreign professionals in specialized occupations and may be available for the number of employees required by an eligible employer. The specialized-skills category is subject to the employee’s qualifications, the employer’s eligibility, the Ministry of Labor’s current specialized-profession list, and any approvals required from other regulatory authorities. There is no universal requirement that the employer prove in every case that the position cannot be filled by a Jordanian national, although the Ministry may assess the employer’s business need, labor-market considerations, sector rules, quotas, and compliance history. 2. The Two Main Corporate Work-Permit Categories For corporate and professional employment, work permits generally fall into two principal categories: 1. Regular work permits; and 2. Work permits for non-Jordanian workers with specialized skills. Other special arrangements may apply to particular groups or sectors, including Syrian workers, day laborers, domestic workers, workers in Qualified Industrial Zones, diplomatic and international organizations, and certain foreign-owned establishments. A. Regular Work Permits A regular work permit is generally available for a profession that the Ministry of Labor classifies as permitted or unrestricted for non-Jordanian workers. Under this category: • The profession must be included in the Ministry’s applicable list of professions permitted for non-Jordanian workers. • The employer must be properly licensed and eligible to employ foreign workers. • The employee must work for the employer and in the profession stated on the permit. • The permit may be subject to sector-specific quotas, numerical limits, or ratios between Jordanian and non-Jordanian workers. • Some professions are completely closed to non-Jordanian workers. • Some professions may be available only after approval from the relevant authority, such as the Ministry of Education, the Ministry of Health, the Engineers Association, the Central Bank of Jordan, the Civil Aviation Regulatory Authority, or another competent body. Examples of professions that may be restricted or closed include certain office, administrative, sales, retail, education, security, and other occupations. The exact classification depends on the current Ministry of Labor guide and the employer’s economic activity. Key characteristics of a regular permit A regular work permit is: • Profession-specific; • Usually employer-specific; • Subject to the applicable sector rules and quotas; • Not intended as a general authorization to employ foreign nationals in any occupation; and • Normally subject to the standard work-permit fee applicable to the relevant category. The employer is not subject to a universal requirement to prove, in every case, that no Jordanian national is available for the position. Instead, eligibility is determined primarily by the profession, sector, quota, employer status, and the applicable Ministry rules. However, the Ministry may request information supporting the employer’s need for foreign labour, particularly in regulated or specialized cases. B. Work Permits for Workers with Specialized Skills The specialized-skills category is designed for non-Jordanian employees whose expertise, qualifications, or experience is required by the employer or contributes to investment, technology transfer, training, or the development of Jordanian employees. This category may be used for professional, technical, managerial, consultancy, expert, training, engineering, medical, information-technology, financial, aviation, academic, and other specialized positions, subject to the applicable list and approvals. The Ministry’s specialized-skills principles generally recognize a worker as having specialized skills where the worker: • Possesses a scarce or important skill in the Jordanian labor market; • Has experience in research, development, quality control, operation, maintenance, or modern technology; • Transfers knowledge, technology, or professional expertise to Jordanian employees; • Has expertise that supports investment and creates employment opportunities for Jordanians; or • Has professional experience required by the employer to perform its activities. Scope of the specialized-skills permit The specialized-skills route is broader than the regular permit route. It may allow an eligible employer to apply for foreign employees in professions outside the ordinary unrestricted-profession list and may be used for the number of employees required by the business, subject to Ministry approval. Accordingly, the specialized-skills category is commonly described as being open to: • Any profession requiring specialized skills, provided that the profession is recognized or approved under the Ministry’s specialized-skills framework; and • Any number of employees required by the eligible employer, subject to the employer’s eligibility, the employees’ qualifications, and the Ministry’s approval. This should not be understood as an automatic authorization for every profession or an unlimited right to hire foreign workers. The Ministry’s current guide includes lists of specialized professions and may require additional approval from another authority. For example: • Engineering positions may require approval from the Engineers Association. • Medical and allied medical positions may require Ministry of Health licensing or approval. • Banking, finance, insurance, and exchange-sector positions may require approval from the Central Bank of Jordan. • Academic positions may require approval from the Ministry of Higher Education and Scientific Research or the relevant accreditation authority. • Aviation positions may require approval from the Civil Aviation Regulatory Authority. Specialized skills permit periods Depending on the applicable rules and approval, specialized skills work permits may be issued for different periods, including: • Two years; • One year; • Six months; or • Three months. The permitted duration and applicable fee should be confirmed at the time of filing. Documents commonly required The application may require: • A copy of the employee’s valid passport; • The employee’s curriculum vitae; • Evidence of education, experience, professional qualifications, or technical expertise; • A letter from the employer explaining the employee’s role and business necessity; • The employer’s registration and professional-license documents; • Approvals or licenses from the relevant professional authority; • A signed employment contract; and • A valid medical examination recorded through the applicable Ministry system. The Ministry may also request additional evidence, including information concerning the employer’s activities, the employee’s responsibilities, or the transfer of expertise to Jordanian employees. 3. Foreign-Owned Companies and Special Corporate Rules Foreign-owned establishments may benefit from special rules for specialized-skills work permits. Depending on the ownership structure and the type of entity, these rules may allow the company to hire specialized foreign workers without applying the ordinary Jordanian-to-foreign-worker ratio. Potentially qualifying entities may include: • Wholly foreign-owned companies; • Foreign-owned sole establishments; • Companies in which foreign ownership meets the applicable threshold; • Subsidiaries of foreign companies; • Branches of foreign companies established to implement specific projects; and • Branches of foreign associations, where applicable. Non-operating foreign companies or regional offices may be subject to separate requirements, including a requirement to employ Jordanian workers in proportion to the number of foreign employees. The company should therefore confirm: 1. Its exact legal form; 2. Its foreign-ownership percentage; 3. Whether it is an operating company, branch, subsidiary, or regional office; 4. The profession proposed for each employee; and 5. Whether the specialized-skills fee and procedure apply. 4. Work-Permit Fees The work-permit fee depends on the type of permit, sector, profession, employee category, and duration. The Ministry’s current fee framework may include different fees for: • Standard work permits; • Specialized skills work permits; • Workers in the garment and textile sector; • Day-labor or flexible permits; • Building-services workers; • Workers in Qualified Industrial Zones; • Domestic workers; and • Other categories designated by the Ministry. An additional amount may also be payable for technical and vocational skills development, together with applicable service charges, stamp fees, late-renewal penalties, or other government charges. The fee should not be described as a fixed amount of JOD 400–500 for all foreign employees. For example, the current Ministry guide contains different fees for standard and specialized-skills permits, and these amounts may be amended by regulation or decision. Unless an exemption applies, the employer should budget for: • The work-permit fee; • Application or audit fees; • Additional statutory charges; • Medical-examination costs; • Residence-related fees; • Translation, certification, and legalization costs; and • Any applicable guarantee or security requirement. 5. Residence Formalization After the work-permit process is approved, the employee may need to complete residence procedures with the Ministry of Interior and the relevant Residence and Borders authorities. The procedure may involve: • An application for annual residence; • Security or administrative clearance, where applicable; • A valid passport; • The approved work permit; • Employer documentation; • Medical examination results; and • Payment of the applicable residence fees. The employee should not begin employment merely because a residence application has been filed. The work authorization and residence requirements must be satisfied before the employee starts working. Medical examination Non-Jordanian workers may be required to complete a medical examination at an authorized Ministry of Health facility or through the applicable electronic system. The scope of the examination depends on the worker’s nationality, category, and the applicable instructions. 6. Dependents A foreign employee who holds lawful residence in Jordan may, subject to the applicable immigration rules, apply for residence for eligible dependents, usually including: • A spouse; and • Minor children. A dependent’s residence does not automatically authorize employment. A dependent who wishes to work in Jordan must obtain the appropriate independent work authorization or qualify under a specific exemption. 7. Employment Contracts and Labor Law Employment relationships are generally governed by the Jordanian Labor Law and its amendments, together with applicable regulations, instructions, and employment-sector rules. Employment contract The employer should maintain a written employment contract setting out: • The employer’s name and registration details; • The employee’s name and nationality; • The job title and duties; • The workplace; • The salary and benefits; • Working hours; • Leave entitlements; • Contract duration; • Notice and termination provisions; and • Any applicable housing, transport, insurance, or relocation benefits. For local labor-law purposes, the Arabic version should be prepared and maintained. An English translation may be provided for international employees, but the Arabic version may be given priority in dealings with Jordanian authorities and courts. Working hours The statutory working-time limits and weekly rest requirements should be applied in accordance with the Labor Law and any sector-specific rules. Many corporate employers operate on a Sunday-to-Thursday schedule, but the actual working hours should be stated in the contract and must comply with the applicable statutory limits. Annual leave Annual leave is generally calculated according to statutory service periods. As a general rule, employees may be entitled to: • Fourteen days of paid annual leave; and • Twenty-one days after the relevant period of continuous service, commonly five years with the same employer. The employer should verify whether a particular employee is covered by a special labor regime or contractual terms providing more generous benefits. Minimum wage The minimum wage is a general statutory requirement and should not be described as a special minimum wage applicable only to foreign workers. The employer must comply with the minimum wage in force at the time of employment, unless a legally recognized exception applies. 8. Social Security Employees working in Jordan may be required to be registered with the Social Security Corporation, subject to the Social Security Law and the applicable exemptions. The employer should assess: • Whether the employee must be registered; • The correct insurable wage; • The employer’s contribution; • The employee’s contribution; • The applicable maternity, injury, disability, old-age, and unemployment coverage; and • Any rules applicable to foreign employees or specific employer categories. The commonly applied contribution rates are subject to statutory amendments and should be confirmed with the SSC at the time of payroll implementation. Foreign employees who permanently leave Jordan may, in certain circumstances, apply for payment of their social-security benefits. This process is not automatic. It may require: • Final departure from Jordan; • Settlement of outstanding work-permit amounts; • A no-objection document from the Ministry of Labor; and • Clearance with the Social Security Corporation. 9. Personal Income Tax Jordanian-source employment income may be subject to income tax in Jordan. Tax treatment depends on: • The employee’s tax residence; • The source of the income; • The number of days spent in Jordan; • The employment arrangement; • Applicable exemptions and deductions; • Any double-tax treaty; and • Whether the remuneration is paid by a Jordanian or foreign entity. The commonly applied tax-residence test should not be treated as the only factor in determining tax liability. A person may have Jordanian-source income even where the person does not satisfy a particular day-count test. Employers should calculate and withhold payroll tax where required and remit the amounts to the Income and Sales Tax Department in accordance with the applicable filing and payment procedures. The tax brackets, exemptions, national contributions, and family allowances should be checked against the current Jordanian Income Tax Law and the latest ISTD instructions. They should not be included in a guide as fixed figures unless the guide is dated and regularly updated. 10. Healthcare and Insurance Employers should determine whether the employee is covered by: • Jordanian public health insurance; • Employer-provided private medical insurance; • Social-security-related medical benefits; • A diplomatic or international-organization health scheme; or • An international expatriate insurance plan. It is not accurate to state as a universal rule that all expatriates have no access to public healthcare. Eligibility depends on the employee’s status, nationality, employer, insurance arrangement, and applicable government rules. Many international companies nevertheless provide private medical insurance covering: • Outpatient treatment; • Inpatient treatment; • Emergency care; • Maternity, where applicable; • Prescription medicines; • Dental and optical care; and • Medical evacuation or international treatment. The policy should identify the insurer, hospitals and clinics within the network, pre-authorization requirements, exclusions, and coverage limits. 11. Currency, Payroll, and Housing The Jordanian dinar is pegged to the United States dollar at approximately: USD 1 = JOD 0.709 This provides relative exchange-rate stability for employers paying salaries linked to the US dollar. The employment contract should nevertheless state clearly: • Whether salary is payable in Jordanian dinars or another currency; • The exchange-rate method; • The gross and net salary; • Tax and social-security deductions; • Bonus and commission arrangements; and • Reimbursement of business expenses. Housing Residential leases in Amman may require advance rent payments, security deposits, or payments made quarterly, semi-annually, or annually. The lease should clearly allocate responsibility for: • Building-service charges, commonly referred to as awaked; • Utilities; • Municipal charges; • Maintenance and repairs; • Registration or documentation costs; • Insurance; • Early termination; and • Restoration of the premises. 12. Customs and Relocation The importation of personal effects, household goods, commercial samples, equipment, or vehicles may be subject to customs procedures, inspection, documentation, and taxes. Before shipping items to Jordan, the employer or relocation provider should verify: • Whether the goods qualify as personal effects; • Whether a one-time exemption is available; • Whether the employee holds the required residence status; • Whether the items are new or used; • Whether invoices and packing lists are required; • Whether restricted goods are included; and • Whether customs duties, sales tax, or other charges apply. A professional customs broker or global-mobility provider should be engaged for executive relocations and commercial imports. 13. Employer Compliance Checklist Before onboarding a non-Jordanian employee, the employer should confirm: Work authorization • The profession is permitted under the regular work-permit category; or • The employee qualifies for the specialized-skills category. • Any required professional approval has been obtained. • The employer’s licenses and registrations are valid. • The employee’s passport is valid. • The employment contract is prepared. • The employee has completed the required medical examination. • The correct work-permit fee has been calculated. • Any applicable quota, ratio, guarantee, or sector restriction has been reviewed. Immigration • Recruitment approval has been obtained where required. • The employee has entered Jordan legally. • Residence procedures have been completed. • The employee is not working before the work authorization is effective. • Dependents have separate lawful residence status, where applicable. Payroll and labor compliance • The employment contract complies with Jordanian Labor Law. • The employee is registered with the SSC where required. • Payroll tax withholding has been assessed. • Salary, leave, working hours, and benefits are documented. • Medical insurance has been arranged where required. • Renewal dates are monitored. Exit and transfer • The work permit is cancelled when the employee permanently leaves. • Final departure procedures are completed where required. • Social-security clearance is obtained where applicable. • Any transfer to another employer is processed through the Ministry of Labor. • The employee is not permitted to work for another employer without authorization. For more info Contact Us!