Minimum Wage
The minimum wage is determined and regulated under the Jordanian Labour Law of 2003. The minimum wage is determined and set by the Tripartite Commission for Labour Affairs. The Ministry of Labour established the Commission with representation from tripartite partners, that is, the Government (Ministry of Labour), worker groups and employer associations. The Minister for Labour chairs the Commission. The Commission determines the minimum wage, in general, for the region, a particular profession, or any particular age by considering the living cost indicators issued by the competent official authorities. The amount of wages is set and determined in the employment contract. If the employment contract fails to do so, the worker shall receive the estimated wage for work of a similar nature. If that is not possible, the worker’s wage is determined according to custom (urf) in the city or country. In case that is also not possible, the Court has the authority to determine wages for a worker in line with the provisions of Jordanian Labour Law.
In a certain region, the ministry may appoint an authority on wages made up of experts and specialists in labour affairs. Claims related to wages, delayed payment of wages, wages for overtime hours or discrimination in wages for work of equal value are examined by this authority. A worker can claim when he is employed or after 6 months of being unemployed. The authority has the power to conduct mediation if the employer or representative fails to attend the session; it may impose a fine of 50 dinars. Authorities can summon parties, request documents, order the payment of unpaid or deducted wages, and award compensation. Its decisions are enforceable like court judgments and are exempt from fees and stamps.
The employer has several responsibilities towards inspection that they must, every year, notify the ministry of all employees' details, their numbers, location and type of job, start date and wage, and maintain employee and trainee registers at the establishments.
Under the Jordan Labour Law, paying workers wages at a rate lower than the statutory minimum wage or wage discrimination based on gender is a punishable offence, with a fine ranging between 500-1000 Dinars. The penalty is doubled in case of a repeat offence.
Source: §8, 43, 52, 53, & 54 of the Jordanian Labour Law, 1996 and its amendments (2010, 2019, 2023)
Regular Pay
Under the Labour Law, wages are defined as all cash or in-kind entitlements added to the remaining entitlements that should be provided in the law, employment contract, or internal regulation of the enterprise or that have become the custom to pay, except for overtime wages. Upon completion of a wage period, employers must pay wages, including overtime allowance, within 7 days of wages becoming due. Wage periods are not prescribed in labour law. The legislation does not fix any period for the regular payment of remuneration. Employers cannot make any deductions other than those authorised by the law. The allowed deductions include recovery of the following: loans or advances made by the employer (any single deduction may not exceed 10% of the worker’s wage); adjustment of overpaid wages; legally required contributions to Social Security; workers’ subscriptions to provident funds; housing provided by the employer; debts settled through a court ruling, or amounts imposed on workers for violations under the bylaws, or for destroying the employer’s tools or equipment (deduction cannot exceed the wage of five days per month).
Employees’ signature on any statement or record of remuneration or receipt for a specified amount should not diminish their right to any additional payment under the law, internal regulations, or employment contract.
There is no mandatory provision in law for a 13th or 14th month pay or a compulsory bonus. However, an employer may voluntarily provide a bonus based on employment contracts, collective bargaining agreements (CBAs), company policies or discretionary awards.
Source: §2 and 46-49 of the Jordanian Labour Law, 1996 and its amendments (2010, 2019, 2023)
For updated minimum wage, please refer to the section on minimum wages.
