What does an employee cost in Jordan?
Enter a gross monthly salary and see the social security split, the income tax withholding and the total cost to the employer.
Employee, per month
Employer, per month
Annual taxable income after exemptions: JOD —. Total exemptions applied: JOD —.
How this is calculated. Social security is applied to gross monthly salary up to the annual contribution ceiling, at 14.25% employer and 7.50% employee. Income tax is calculated on annual income after deducting the employee's social security contributions and the applicable exemptions, then charged progressively at 5%, 10%, 15% and 20% on each successive JOD 5,000 of taxable income and 25% above JOD 20,000, with a further 1% national contribution on taxable income above JOD 200,000. The monthly withholding shown is one twelfth of the annual charge.
This is an estimate. It assumes twelve equal monthly payments, no bonus or variable pay, no severance element and no treaty position. Real payroll involves joiners and leavers mid-year, end of service accrual, benefits in kind and categories of worker treated differently. Rates and the ceiling change from time to time. Do not rely on this figure for a filing. Ask us for a worked calculation and we will do it properly.
Payroll, run properly
The calculation above is the easy part. What actually takes the time is the joiners and leavers, the statutory registrations, the monthly filings with two separate authorities, the end of service accrual and the year end forms.
No entity in Jordan yet?
You can employ people here without setting up a company. We act as the legal employer, carry the statutory obligations, and you direct the work.