Business culture in Jordan
Business culture in Jordan
Business culture in Jordan is characterized by relationship-building, respect for hierarchy, and traditional values that shape workplace interactions. Unlike Western business environments where transactions may move quickly, Jordanian business requires patience and personal connection before deals progress. Understanding these cultural elements helps international managers build trust and avoid missteps that could damage professional relationships.
Communication
In Jordan, business communication tends to be indirect with an emphasis on politeness and saving face. Jordanians often use diplomatic language and avoid direct criticism, especially in group settings. Conversations typically begin with personal questions about family and health before discussing business matters.
Hierarchy
Workplace hierarchy in Jordan typically follows a top-down structure which influences decision-making and reporting relationships. Senior leaders make most decisions, and questioning authority is generally viewed as disrespectful. Titles are important and should be used when addressing colleagues, especially those in higher positions.
Relationships
Professional relationships in Jordan are built through personal connections, shared meals, and demonstrating trustworthiness over time. Business partnerships often develop slowly as Jordanians value getting to know potential partners personally before committing to business arrangements.
Time management
Attitudes toward time and punctuality in Jordan tend to be more flexible than in Western countries, which affects scheduling and deadlines. While foreigners are expected to be punctual, meetings may start late or be interrupted for prayer times or personal matters. The workweek runs Sunday through Thursday, with Friday and Saturday as weekend days.
Practical applications
When working with colleagues in Jordan, international managers should invest time in relationship-building to establish trust and credibility. Accept invitations for coffee or meals, as these social interactions are crucial for business success. Dress conservatively in business settings, with men wearing suits and women choosing modest attire that covers shoulders and knees. Show respect for prayer times and religious holidays, especially during Ramadan when work schedules may adjust to accommodate fasting.
Market insights for Jordan
Jordan employment market overview
The Jordan employment market is characterized by high education levels, significant youth unemployment, and growing technology sectors that shape hiring opportunities and challenges. Jordan's job market is growing in technology, healthcare, and engineering, with a 22% overall unemployment rate. The country has a highly educated workforce but faces challenges matching skills to market needs.
Talent availability
Skilled professionals in Jordan are abundant in engineering and IT with over 5,000 tech graduates annually. However, there's a skills gap between education and employer needs, especially in technical fields. Companies often compete for experienced professionals in high-demand sectors.
Key industries
Jordan's strongest employment sectors include technology, healthcare, engineering and finance which offer opportunities for international companies. The technology sector is growing fastest, with increasing demand for software developers, data analysts, and digital project managers.
Salary expectations
Salary ranges for professionals in Jordan typically range from 500-2,000 JOD monthly for mid-level positions, affecting hiring budgets. The minimum wage recently increased to 290 JOD per month. Tech professionals and engineers command higher salaries than other sectors.
Hiring implications
Companies hiring in Jordan should leverage digital recruitment platforms to access qualified candidates efficiently. The high youth unemployment presents an opportunity to develop entry-level talent through structured training programs. Companies should also emphasize employer branding and competitive benefits packages to attract top talent in a market where skilled professionals have multiple options, especially in technology sectors.
EOR benefits in Jordan
What are the benefits of using an EOR in Jordan?
The key benefits of using an Employer of Record (EOR) in Jordan include quick market entry, simplified compliance, reduced administrative workload, cost reduction, and access to local expertise.
Here are the 5 benefits of using an EOR in Jordan:
Quick market entry. An EOR lets you hire workers in Jordan within days instead of months. You don't need to set up your own company in Jordan, which saves a lot of time and paperwork. This is perfect if you want to test the Jordanian market or need to start a project quickly.
Simplified compliance. Jordan has specific labor laws that can be tricky to understand. An EOR handles all the legal requirements like work permits, tax filings, and social security payments. They keep up with any law changes, so you don't have to worry about breaking rules you didn't know about.
Reduced administrative workload. The EOR takes care of payroll, benefits, and employee paperwork in Jordan. They handle everything from creating job contracts to managing time off and handling terminations. This frees up your time to focus on growing your business instead of dealing with HR tasks.
Cost reduction. Setting up a company in Jordan costs a lot of money. Using an EOR means you avoid these setup costs, legal fees, and the expense of hiring HR staff. This makes it much cheaper to employ people in Jordan, especially if you only need a few workers.
Local expertise access. Jordan has a unique business culture and job market. An EOR provides valuable insights about local customs, hiring practices, and employee expectations. They can help you understand what makes a competitive salary and benefits package in Jordan, making it easier to attract top talent.
Unique compliance considerations in Jordan
Key compliance challenges
What are the compliance challenges when hiring in Jordan?
The key compliance challenges when hiring in Jordan include frequent regulatory changes, employment contract requirements, termination procedures, payroll and social security compliance, and work permit requirements for foreign employees.
Here are the 5 compliance challenges companies face when hiring in Jordan:
Employment contracts. Contracts must be in Arabic and include specific terms like salary, job duties, and duration. Missing or unclear terms can lead to legal disputes. Keep records of all employment documents as they're required during inspections or disputes.
Termination procedures. Jordan has strict rules for ending employment. Employers need valid reasons for termination and must provide proper notice periods. Unfair dismissal can result in reinstatement orders or compensation claims in labor courts.
Payroll and social security. Companies must accurately calculate and submit Social Security contributions based on employee wages. Late payments or incorrect deductions can lead to fines. Special care is needed when managing payroll for expatriate employees.
Working hours and leave. The standard workweek is 48 hours with specific overtime pay requirements. Employees are entitled to annual leave, sick leave, and religious holidays. Common violations include not paying overtime correctly or maintaining accurate time records.
Immigration requirements. Foreign workers must have valid work and residence permits before starting employment. The Ministry of Labor regularly inspects workplaces for compliance. Hiring undocumented workers can result in significant fines or business closure.
An Employer of Record (EOR) can handle these compliance challenges, taking on the legal responsibility and ensuring your hiring practices adhere to Jordan's regulations.
Employment basics
Essential employment information and regulations for hiring in Jordan.
Working hours
Employment protection
Compensation Standards
Minimum Wage
1500 USD
Currency
USD
Pay Frequency
monthly
Benefits & leave
Comprehensive overview of employee benefits and leave policies in Jordan.
Leave Policies
Annual Leave
Days per year: 20
Payment: 100%
Notice period: 2 weeks
Ref: Employment Act Section 15
Sick Leave
Days per year: 14
Payment: 100%
Ref: Employment Act Section 16
Maternity Leave
Days per year: 98
Payment: 100%
Flexible return-to-work arrangements available Protection from dismissal during pregnancy Right to return to same or similar position
Ref: Employment Act Section 17
Paternity Leave
Days per year: 14
Payment: 100%
Can be taken in two separate weeks Multiple births do not increase leave duration
Ref: Employment Act Section 18
Employee Benefits
Employee benefits
Jordan provides a comprehensive benefits package for employees that includes both mandatory and optional benefits. These benefits are designed to ensure employee welfare and comply with local regulations.
Mandatory Benefits
Non-Mandatory Benefits
Public Holidays
Jordan observes 10 public holidays throughout the year. Most holidays are paid at 100% of regular salary.
| Date | Holiday | Status |
|---|---|---|
| January 1 | New Year's Day | Mandatory |
| March 31 | Eid al-Fitr | Mandatory |
| May 1 | Labor Day | Mandatory |
| May 25 | Independence Day | Mandatory |
| June 5 | Arafah (tentative) | Mandatory |
| June 7 | Eid al-Adha | Mandatory |
| June 26 | Islamic New Year (Muharram) | Mandatory |
| September 4 | Prophet Muhammad's Birthday | Mandatory |
| December 25 | Christmas Day | Mandatory |
| January 27 | Al Isra' wal Miraj | Mandatory |
Taxes & payroll
Comprehensive tax structure and payroll requirements for employers and employees in Jordan.
Tax Structure Overview
Important Tax Information
When using an EOR in Jordan, your EOR provider will handle all tax calculations, withholdings, and submissions to local authorities. This ensures full compliance with local tax laws.
Tax overview
Key tax considerations when employing in Jordan:
| Tax type | Paid by | Rate | Notes |
|---|---|---|---|
| {"name":"Personal Income Tax","type":"income Tax","paid By":"employee","period":"annual","notes":"Progressive tax system with three brackets"} | employee | Varies | Standard {"name":"personal income tax","type":"income tax","paid by":"employee","period":"annual","notes":"progressive tax system with three brackets"} rates apply in Jordan. |
| {"name":"Social Security Contributions","type":"social Security","paid By":"shared","employer Contribution":12.5,"employee Contribution":7.5,"period":"annual","notes":"Calculation base: Gross salary up to maximum threshold"} | employee | Varies | Standard {"name":"social security contributions","type":"social security","paid by":"shared","employer contribution":12.5,"employee contribution":7.5,"period":"annual","notes":"calculation base: gross salary up to maximum threshold"} rates apply in Jordan. |
| {"name":"Healthcare Levy","type":"healthcare","paid By":"shared","employer Contribution":1,"employee Contribution":1,"period":"annual","notes":""} | employee | Varies | Standard {"name":"healthcare levy","type":"healthcare","paid by":"shared","employer contribution":1,"employee contribution":1,"period":"annual","notes":""} rates apply in Jordan. |
Payroll Requirements
Payment Details
Pay Frequency: monthly
Currency: USD
Minimum Wage: 1500 USD
13th Month Bonus: Required