Employer of Record (EOR) in Jordan
An EOR in Jordan allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment from payroll processing to compliant administration.
Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Jordan.
Quick Overview of EOR in Jordan
Expanding into Jordan doesn't have to mean drowning in paperwork or hefty setup costs. With an Employer of Record (EOR), you can bypass the complexities of local regulations and quickly hire employees, all while maintaining compliance with Jordan's labor laws. From payroll processing and tax compliance to benefits management, an EOR takes care of the legal nitty-gritty like social security contributions, so you can focus on growing your business without the need to set up a costly local entity.
The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Establishing a local entity in Jordan can cost anywhere from USD 5,000 to USD 15,000 (JOD 3,550 to JOD 10,650) plus the cost of maintaining human resources (HR), legal assistance, accountants and more. It can also become highly administrative. By partnering with an EOR, you can avoid these setup costs and enter the market faster, avoiding the overhead of a physical office. This is especially beneficial for startups, SMEs, and businesses testing new markets, who need to act quickly and comply with complex local regulations.
How an EOR Works
Atlas HXM provide EOR services that ensure your business remains compliant with Jordan's labor laws while you focus on growing your operations, free from administrative and legal burdens.
Candidate Selection
Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Jordanian rules, and configuring payroll and statutory obligations correctly. EOR providers in Jordan, including Atlas HXM, can manage the complex requirements and government relationships necessary for legal employment.
Employment Contracts
Atlas HXM drafts and administers employment contracts in compliance with the Jordanian Labor Law. In the contract, we clearly outline employment terms to reduce the risk of future disputes, such as:
Job title and responsibilities
Salary, benefits, and working hours
Leave entitlements and notice periods
Termination terms and conditions
Payroll & Benefits Management
Payroll is processed in Jordanian dinars (JOD), including:
Accurate tax withholdings and social security contributions
Statutory benefits
The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Jordan's laws.
Ongoing HR Support
Provides HR support, including: Leave management, employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.
What to Choose: EOR vs PEO
Work Life in Jordan
Jordan's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:
Employment Types:
Permanent: Ongoing employment with full statutory benefits.
Fixed-Term: Hired for a specific project or defined duration, limited to specific circumstances.
Temporary: Short-term assignments; entitled to statutory benefits like leave and overtime.
Probation Periods: Probationary periods can last up to 3 months. This period allows employers to assess employee suitability before offering permanent employment. During probation, either party can terminate without notice or severance pay, and the EOR ensures that all terms are compliant with Jordanian Labor Law.
Working Hours & Overtime: In Jordan, the max workweek is 48 hours, typically distributed across five days, the standard 8 hours per day, though few businesses operate on a rotating shift pattern schedule. During Ramadan, working hours are reduced to 36 hours per week, for eligible employees. Overtime is paid at 125% of the basic hourly rate for normal days and 150% for weekends/holidays, and the EOR ensures that all overtime is calculated correctly and that employee work hours comply with local regulations.
Leave Entitlements
Leave Type | Eligibility / Duration | Payment / Notes |
|---|---|---|
Annual Leave | 14 days after 1 year, 21 days after 5 years | Paid by employer; unused leave paid out on termination |
Maternity Leave | 70 days (10 weeks) | At least six weeks mandated after delivery. Fully paid through social security contributions |
Paternity Leave | 3 days | Paid leave by the Employer to working fathers |
Sick Leave | 14 days fully paid annually | This can be extended by another 14 days at full pay if hospitalization is required, or at half pay for non-hospitalized cases with authorized medical certification Paid by the Employer |
Public Holidays | All statutory holidays | Paid; handled by Atlas HXM |
Payroll & Benefits: Wages must meet minimum wage requirements (260 JOD monthly), with progressive structures common in professional sectors. Atlas HXM manages payroll in JOD, social security contributions (employer and employee), statutory benefits, bonuses, and supplemental benefits. Additional benefits can include health insurance, transportation allowances, and professional development options.
Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Jordan's labor laws while businesses can focus on operations without administrative burdens.
What to Choose: Indirect vs Direct EOR
Taxes & Compliance
Jordan operates on a calendar-year tax system. Employers must submit monthly income tax withholdings by the 15th of the following month, while social security contributions are due by the end of the month following the payroll period. Annual income tax returns for employees earning above certain thresholds are due by March 31st of the following year.
Category | Details |
|---|---|
Employer Payroll Tax | Social Security contributions: 14.25% of gross salary
|
Employee Payroll Tax | Progressive income tax: 5%–30% based on annual income levels
|
Pension System | Operated through Social Security Corporation with mandatory contributions
|
VAT & EOR Costs: Jordan applies a 16% Value Added Tax (VAT) to most goods and services, including EOR services. VAT will be added to service fees, increasing the total cost of employment services. EOR providers must be registered for VAT and comply with all reporting requirements.
Atlas HXM handles tax compliance, including progressive income tax calculations, social security contributions, year-end filings, and expatriate tax planning, ensuring businesses remain compliant with local laws while minimizing administrative burden.
Termination
Employees must give written notice for termination, with minimum notice periods of one month
Severance pay (end-of-service gratuity) for employees who are not covered by the national Social Security system is calculated as one month's salary for each year of service, applying to all terminations except those for serious misconduct.
While for employees enrolled in the Social Security system, severance entitlements are typically covered through those contributions.
The EOR helps ensure proper handling of terminations, including notice periods, final wages, and required documentation.
5 Things to Look for in an EOR Provider in Jordan
Local expertise and knowledge of Jordanian labor laws, social security requirements, and government relationships.
Advanced technology for payroll, reporting, and HR system integration with Arabic and English interfaces.
Experience in your industry.
Strong compliance track record and relationships with government agencies and legal advisors.
Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).
Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Atlas HXM's unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2026, Atlas HXM combines compliance, technology, and global expertise.
FAQs
How quickly can I hire employees in Jordan through an EOR?
With an established EOR provider like Atlas HXM, you can typically hire employees within 2-3 weeks.
What is the minimum wage in Jordan?
The current minimum wage in Jordan is 260 Jordanian dinars per month for most sectors.
Are there restrictions on hiring foreign employees?
Yes, Jordan has quota systems limiting foreign workers in certain industries, and work permits are required for all foreign employees.
How is severance pay calculated in Jordan?
Severance pay is calculated as one month's basic salary for each year of service, with partial years calculated proportionally.
What are the mandatory benefits for employees?
Mandatory benefits include social security coverage (14.25% employer, 7.5% employee contributions), workers' compensation, annual leave, and maternity leave.
Can employment contracts be in English?
Employment contracts must be in Arabic to be legally valid, though bilingual contracts with English translations are commonly used.