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.

Country InsightsJordanEmployer of Record

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.

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What You'll Learn

  • Looking to hire in Jordan without the hassle and administrative burden of setting up a local entity? An EOR helps you onboard employees while maintaining compliance with payroll and local labor laws.

  • With a Direct EOR, you gain control, faster onboarding, and stronger compliance. It is ideal for businesses aiming to scale quickly.

  • On the other hand, an Indirect EOR may be more cost-effective but comes with slower processes and added complexity.

  • EOR service fees typically range from USD 300 to USD 600 (JOD 213 to JOD 426) per employee per month.

  • Atlas HXM offers a robust Direct EOR solution, providing smooth market entry, compliance, and seamless employee management: all in one platform.

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.

Costs & Pricing

EOR services in Jordan are typically billed as a platform/service fee in the range of USD 300–600 (JOD 213–426) per employee per month. This fee covers administration such as compliant contracts, payroll processing, statutory filings, and HR administration for workers. This service fee is separate from the employee's salary, benefits, taxes, and work permit-related costs, which vary by role and jurisdiction. By using an EOR, companies avoid the cost and overhead of setting up a Jordan entity, which can require USD 5,000–15,000 (JOD 3,550–10,650) upfront before any operational spend.

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What to choose: EOR vs PEO

EOR

Employer of Record

An EOR becomes the legal employer for your talent in a country where you do not have an entity. The EOR handles compliant contracts, payroll, statutory benefits, tax filings, and labour-law adherence. You still direct the employee's work. This model suits companies expanding into Jordan without wanting to form a local entity or take on compliance risk.

PEO

Professional Employer Organization

A PEO provides outsourced HR services like payroll, benefits, HR admin, but only when you already have a local entity. You remain the legal employer, and the PEO shares administrative tasks without taking on employer liability. Suitable when you are already established in the country and are only looking to offload HR administration.

What’s Best for You?

  • Choose an EOR when you want to hire in Jordan without setting up an entity and want a partner who can take on contracts, payroll and compliance.

  • Choose a PEO when you already operate locally and just want HR support.

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: Direct vs Indirect EOR

Direct EOR

The EOR owns the legal entities in the target country and manages employment directly. This model offers faster onboarding, stronger compliance oversight, and greater operational control across all employment processes.

Best for: Businesses looking to scale quickly, expand long-term, or enter Jordan with compliance.

Indirect EOR

The EOR provider operates through a third-party local entity. While it can be used in certain scenarios, it may introduce additional coordination layers and potential compliance complexity.

Best for: Small teams or short-term hires with less urgent compliance needs.

What’s Best for You?

  • A Direct EOR model is a strong and reliable option for businesses of any size entering Jordan. Whether hiring one employee or building a larger team, it provides a compliant, structured framework from day one.

  • With Atlas HXM’s direct infrastructure, companies benefit from streamlined onboarding, clear accountability, and consistent compliance support — without needing to establish a local entity.

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 Additional obligations may include professional tax, municipal fees, or industry-specific levies

Employee Payroll Tax

Progressive income tax: 5%–30% based on annual income levels Employee social security contributions: 7.5% of gross salary Tax-free threshold provides relief for lower-income employees

Pension System

Operated through Social Security Corporation with mandatory contributions Provides retirement, disability, and survivor benefits Retirement benefits calculated based on contribution history and salary levels

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.

Visas & Work Permits

There is no specific section for visas and work permits in the input provided.

5 Things to Look for in an EOR Provider in Jordan

  1. Local expertise and knowledge of Jordanian labor laws, social security requirements, and government relationships.

  2. Advanced technology for payroll, reporting, and HR system integration with Arabic and English interfaces.

  3. Experience in your industry and handling work permit management for foreign employees.

  4. Strong compliance track record and relationships with government agencies and legal advisors.

  5. Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).

atlas logo

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 2025, Atlas HXM combines compliance, technology, and global expertise.

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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, depending on work permit requirements for foreign nationals.

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.

         

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