Hiring in Jordan: A Comprehensive Guide for US Companies

Jordan is rapidly emerging as a strategic destination for international hiring, thanks to its robust educational infrastructure, multilingual workforce, and business-friendly environment. The country boasts a large pool of skilled professionals, particularly in technology, engineering, and business services. Its central location in the Middle 

East offers a gateway to regional markets, while its stable government and progressive labor reforms make it attractive for foreign companies seeking reliable, compliant expansion.

For US-based and other international companies, hiring in Jordan provides access to top talent at competitive costs. The nation’s modern business infrastructure, clear legal frameworks, and growing emphasis on digital transformation further enhance its appeal. 

Whether you’re looking to build a remote team, set up a regional hub, or tap into specialized expertise, Jordan offers a compelling mix of quality, value, and strategic advantage.

How to Hire Employees in Jordan

Assess Your Hiring Needs

Before hiring in Jordan, start by defining your business objectives and workforce requirements:

• Full-time vs. Project-Based Support: Decide if you need permanent employees for ongoing roles or contractors for specific projects. Jordan’s labor laws distinguish clearly between these categories, affecting contracts and compliance.
• Local Compliance Requirements: Jordan mandates employment contracts in Arabic, with specific rules on leave, benefits, and social security. Understanding these obligations is crucial for smooth onboarding and risk mitigation.
• Onboarding Speed vs. Long-Term Control: If speed is essential, partnering with an Employer of Record (EOR) can help onboard talent in as little as 7 days. For greater long-term control, establishing a local entity may be preferable, though it requires more time and resources.

Hiring Options in Jordan

You have two primary options for hiring employees in Jordan:

• Set Up a Legal Entity: Establish your own subsidiary or branch in Jordan, giving you direct control over hiring, payroll, and compliance. This is ideal for companies planning significant, long-term operations.
• Partner with an Employer of Record (EOR): An EOR acts as the legal employer on your behalf, handling contracts, payroll, taxes, and compliance. This approach allows you to hire quickly and compliantly without setting up a local entity.

For a deeper dive into global expansion models, see The Need for EOR, PEO, and AOR for Global Expansion.

EOR vs. Legal Entity: Side-by-Side Comparison

Feature	Employer of Record (EOR)	Setting Up a Legal Entity
Setup Time	1-2 weeks (often as fast as 7 days)	Several months
Upfront Costs	Low (monthly fee, e.g., $599/month)	High (registration, legal, admin fees)
Compliance Management	Managed by EOR	Your responsibility
Payroll & Benefits	Handled by EOR	Must be set up and managed by you
Local Expertise Needed	Minimal (EOR provides local knowledge)	Required (legal, HR, payroll experts)
Long-Term Control	Limited (EOR is legal employer)	Full control (you are legal employer)
Best For	Fast market entry, testing new markets	Large-scale, permanent operations

For more information on EOR solutions, visit Employer of Record: Complete Guide for Global Employers and Going Global: Choosing a Global EOR Partner.

Understanding Worker Classification

Employees vs. Contractors in Jordan

Proper classification is essential for compliance and risk management. Here’s how employees and contractors differ in Jordan:

Aspect	Employee	Contractor
Contract Type	Fixed-term or indefinite-term (in Arabic)	Service agreement (can be project-based)
Legal Protections	Covered by labor law (leave, benefits, notice)	Not covered by labor law
Tax Withholding	Employer withholds and remits taxes	Contractor responsible for own taxes
Social Security	Employer pays contributions	Not required
Work Control	Employer directs work, hours, location	Contractor controls how/when work is done
Termination	Subject to statutory notice and protections	As per contract terms

Legal Implications and Risks of Misclassification

Misclassifying employees as contractors can expose your company to significant legal and financial risks in Jordan. If authorities determine that a contractor is functioning as an employee, you may face:

• Back payment of taxes and social security contributions
• Fines and penalties for non-compliance
• Liability for statutory benefits (leave, severance, etc.)
• Reputational damage and potential business restrictions

To avoid these risks, ensure you understand the legal definitions and structure your agreements accordingly. 

Learn more: W-2 and 1099 Forms: Differences, Usage, and Classification Regulations | Freelancers, Independent Contractors, and Consultants: Opportunities and Challenges.

Hiring Costs and Payroll

Hiring Costs Overview

• Minimum Wage: 260 JOD/month for Jordanian nationals; 230 JOD/month for foreign workers.
• Employer Payroll Costs: Social security contributions are 14.25% of salary (capped at a maximum salary of 3,394 JOD/month for contributions).
• One-Time Costs: Printed employee agreement signature process costs 56.75 JOD.
• EOR Fees: Starting at $599/month, depending on provider and service scope.

For a detailed breakdown of global payroll costs, check out Understanding Total Cost of Employees: Calculation and Management Factors.

Payroll Setup Steps

1. Register with Local Authorities: If operating your own entity, register with Jordan’s labor and tax authorities.
2. Draft Employment Contracts: Must be in Arabic; attach translations for foreign employees.
3. Enroll Employees in Social Security: Mandatory for all local employees.
4. Set Up Payroll System: Ensure monthly payroll cycle, tax withholding, and benefit administration.
5. Comply with Reporting Deadlines: Remit taxes and social security on time.

Using an EOR streamlines these steps, as they handle registration, payroll, and compliance on your behalf.

Income Tax Rates

Jordan uses a progressive income tax system:

• 5% on the first 5,000 JOD
• 10% on the next 5,000 JOD
• 15% on the next 15,000 JOD
• 20% on the next 20,000 JOD
• 25% up to 1,000,000 JOD
• 30% above 1,000,000 JOD

Employers must withhold and remit income tax monthly.

Payment Methods

• Direct Deposit: Standard for local employees.
• Bank Transfers: Common for both local and foreign workers.
• EOR Payroll: If using an EOR, all payments (salary, benefits, taxes) are managed through their platform.

For more on international payroll, check How to Pay International Employees.

Using Global Payroll Services

Global payroll services like Tarmack or other EOR providers handle:

• Automated payroll processing
• Tax and social security compliance
• Benefits administration
• Multi-currency payments
• Localized reporting

This reduces administrative burden and ensures compliance with Jordanian law. 

Understand How Tarmack Streamlines Global Payroll and Compliance for Enterprise Growth.

How to Properly Hire and Pay Contractors

• Draft a Clear Service Agreement: Specify deliverables, timelines, and payment terms.
• Avoid Control Over Work Methods: Contractors should control how and when they work.
• Pay via Bank Transfer or International Payment Platforms: Ensure timely, documented payments.
• No Statutory Benefits or Tax Withholding: Contractors manage their own taxes and benefits.

Here are the Things to Know Before Paying International Contractors: Payment Structure and Methods.

Compliance Risks

Incorrect Payroll Contributions

Failing to withhold and remit the correct social security or tax contributions can result in:

• Fines and penalties
• Legal disputes with authorities
• Back payments and interest charges

Ensure payroll is calculated accurately and all remittances are made on time.

Permanent Establishment Risk

Operating in Jordan without a legal entity, but with significant business activity, may trigger a “permanent establishment.” This can result in unexpected tax liabilities and regulatory scrutiny. An EOR helps mitigate this risk by acting as the local employer.

Check out the Compliance Challenges When Establishing an Entity Overseas: Tips to Overcome.

Statutory Benefits

Employers must provide:

• Social security contributions (14.25% of salary)
• Annual leave (14 days/year)
• Sick leave (14 days/year)
• Maternity leave (10 weeks)
• Access to medical screening and occupational health protections

Non-compliance can lead to fines and employee claims.

Misclassification Risks

Incorrectly classifying employees as contractors can trigger:

• Retroactive tax and benefit obligations
• Legal penalties and fines
• Damage to company reputation

For more on managing compliance, see Employment Compliance and Its Importance.

Provincial/Regional Law Variances

Jordan’s labor laws are largely national, with minimal provincial variation. However, always verify any local regulations that may apply in specific economic zones or sectors.

Overview of Main Intellectual Property Rights for Employers

Employers should protect:

• Copyright: For software, documentation, and creative works.
• Trade Secrets: Confidential business information and processes.
• Patents: For inventions developed by employees (if applicable).
• Trademarks: Company names, logos, and branding.

Include IP assignment clauses in employment and contractor agreements to ensure company ownership of work products. 

For more details, check out Managing Intellectual Property (IP) Through EOR: Key Considerations for Businesses.

Onboarding Process

Before Their First Day

• Prepare Employment Contract: Must be in Arabic; attach translation for foreign nationals.
• Collect Required Documents: Passport, work permit (if applicable), bank details, tax forms.
• Register for Social Security: Mandatory for all employees.
• Arrange Equipment and Access: Set up laptops, software, and secure access as needed.

On Day 1

• Formal Introduction: Welcome the new hire, provide orientation on company policies and culture.
• Review Job Duties and Expectations: Clarify role, responsibilities, and performance metrics.
• Provide Access to Systems: Grant login credentials, email, and necessary applications.
• Health and Safety Briefing: Cover workplace safety, emergency procedures, and medical screening if required.

During Their First 90 Days

• Probation Period: Maximum of 3 months; assess performance and fit.
• Regular Check-Ins: Schedule feedback sessions and address any onboarding issues.
• Training and Development: Offer job-specific training and resources.
• Finalize Benefits Enrollment: Ensure social security and optional benefits are active.

Explore the Top Eight Best Practices for Onboarding International Employees: How EOR Can Help.

Offer Letter Essentials

• Position and Job Description
• Compensation and Benefits
• Working Hours and Location
• Leave Entitlements
• Probation Period Terms
• Termination Conditions

Ensure all terms comply with Jordanian labor law.

NDAs and Confidentiality

• Non-Disclosure Agreements (NDAs): Protect company secrets and client data.
• Confidentiality Clauses: Include in employment contracts to safeguard sensitive information.

Running Background Checks

• Legal Compliance: Obtain candidate consent before conducting checks.
• Scope: Verify identity, employment history, education, and criminal record (where permitted).
• Use Reputable Providers: Ensure data privacy and accuracy.

Remote Employee Management

Managing remote employees in Jordan requires careful planning and robust processes:

• Computer and App Access: Provide secure laptops and use VPNs or secure cloud platforms to protect data.
• App Access: Use role-based access control to limit sensitive information to authorized personnel.
• IP Protection: Include clear IP assignment and confidentiality clauses in contracts. Regularly review access logs and educate employees on data security.

Learn How to Manage Employees Remotely and Globally and Building Organizational Culture in Remote Teams.

Labor Law Compliance

Key Working Condition Requirements

• Working Hours: Standard is 8 hours/day, 48 hours/week (Sunday–Thursday).
• Overtime: Limited to 30 days/year; must be compensated as required by law.
• Leave: 14 days annual leave, 14 days sick leave, 10 weeks maternity leave, and public holidays.
• Contracts: Must be in Arabic and provided in duplicate; probation period up to 3 months.

Working Conditions by Employment Type

• Employees: Full labor law protections, statutory benefits, and notice requirements.
• Contractors: Governed by civil/commercial law; no statutory leave or benefits.

No At-Will Employment

Jordan does not recognize at-will employment. All terminations must be for a valid reason and follow statutory notice and severance rules.

Trade Unions and Collective Bargaining

Employees have the right to join trade unions and engage in collective bargaining. Employers should be aware of sector-specific agreements that may impact working conditions.

Termination Guidelines

Acceptable Termination Reasons

Employers may terminate employees for:

• Redundancy or business restructuring
• Performance or misconduct (with documented evidence)
• Expiry of a fixed-term contract
• Mutual agreement

Termination must comply with contract terms and labor law, including notice periods and severance where applicable.

Notice Periods and Legal Protections

• Notice Period: Typically one month, unless otherwise specified in the contract.
• Legal Protections: Employees are protected against unfair dismissal. Employers must document reasons for termination and follow due process.
• Retirement: Employment may only be terminated at retirement age if all statutory conditions are met.

Take a look at Suggested Script for Terminating an Employee Professionally and Respectfully.

Benefits of Hiring in Jordan

• Skilled Talent Pool: Strong educational system and high English proficiency.
• Cost Efficiency: Competitive salaries and moderate employer costs.
• Time Zone Advantage: Overlaps with Europe, Asia, and Africa, supporting global collaboration.
• Business-Friendly Environment: Modern infrastructure and supportive government policies.
• Fast Onboarding: EOR solutions can onboard employees in as little as 7 days.
• Compliance Support: Clear legal frameworks and access to local expertise.

Simplify Global Expansion: Onboard and Manage Teams in Jordan

Hiring in Jordan offers international companies a unique blend of skilled talent, cost-effectiveness, and operational flexibility. 

With clear labor laws, a modern business environment, and multiple hiring models, Jordan is well-suited for companies looking to expand in the Middle East and beyond. 

By understanding local compliance, leveraging EOR solutions, and following best practices for onboarding and management, you can build a high-performing, compliant team in Jordan with confidence.

Ready to hire in Jordan? Discover how Tarmack can simplify your onboarding, payroll, and compliance—so you can focus on growing your business. Book a demo today!