Leaves & Vacations

• 14 working days of paid annual leave per year
• Increases to 21 working days after 5 consecutive years with the same employer
• Public holidays and weekly rest days falling within annual leave are not counted as leave days
• Unused annual leave must be compensated in cash upon termination (Article 63)
• Any agreement waiving annual leave is null and void (Article 64)

• 14 days of sick leave per year at full pay, based on a report from a physician approved by the employer
• Renewable for an additional 14 days at full pay if the worker is hospitalized, or based on a report from a medical committee approved by the employer
• Total: up to 28 days per year

• 10 weeks (70 days) at full pay (Note: Parliament has approved extending maternity leave to 90 continuous days; this amendment is pending royal approval and official gazette publication)
• Post-delivery portion must be at least 6 weeks
• Social Security Corporation pays the maternity allowance if the employee has at least 6 months of contributions
• 1 paid nursing hour per day for up to 1 year after delivery

• 3 days of paid leave after the birth of a child
• Introduced in the 2019 amendments to the Labour Law

• 14 days of paid leave for performing the Hajj pilgrimage
• Granted once during the employee's tenure with the employer
• Requires 5 years of continuous service with the same employer

• 14 days of paid leave for labour education courses
• Up to 4 months of unpaid leave for study at an officially recognized institution

• Maximum 3 months
• Either party may terminate without notice and without compensation during probation
• Probation period counts toward length of service if employment continues

Overtime

• 8 hours per day, 48 hours per week
• At least one rest day per week, typically Friday (Article 60)
• Working hours may extend to 11 hours per day provided the weekly total does not exceed 48 hours

• Regular weekday overtime: 125% of normal hourly wage
• Weekend (rest day) overtime: 150% of normal hourly wage
• Public holiday overtime: 150% of normal hourly wage

• For purposes of annual inventory, balance sheet preparation, closing accounts, and clearance sales: maximum 30 days of mandatory overtime per year, with actual working hours not exceeding 10 hours per day during those periods
• Overtime beyond these limits requires employee consent

Salary Calculation

• JOD 290 per month (effective January 2025 through December 2027)

• Employee contribution: 7.5% of gross salary (6.5% pension + 1% unemployment)
• Employer contribution: 14.25% of gross salary (11% pension + 0.75% sickness and maternity + 2% work injury + 0.5% unemployment)
• Monthly salary ceiling for contributions: JOD 3,668 (2025)

• Personal exemption: JOD 9,000 per year for the taxpayer
• Dependents exemption: additional JOD 9,000 per year for taxpayers with tax-resident dependents
• Additional expense deductions: JOD 1,000 per taxpayer, JOD 1,000 per spouse, and JOD 1,000 per child (up to 3 children), for medical, education, rent, and housing loan interest expenses
• Maximum total exemptions per family: JOD 23,000
• Employee social security contributions are generally treated as deductible from taxable income in practice; consult the Income and Sales Tax Department (ISTD) or a licensed tax advisor for binding confirmation

• First JOD 5,000: 5%
• Next JOD 5,000 (up to 10,000): 10%
• Next JOD 5,000 (up to 15,000): 15%
• Next JOD 5,000 (up to 20,000): 20%
• JOD 20,001 to 1,000,000: 25%
• Above JOD 1,000,000: 30%
• National contribution tax: additional 1% on taxable income exceeding JOD 200,000 per year

1. Start with gross monthly salary
2. Deduct Employee Social Security: 7.5% of gross, salary capped at JOD 3,668 per month
3. Annualize the gross salary (multiply by 12)
4. Subtract the applicable exemptions: JOD 9,000 personal exemption, plus JOD 9,000 dependents exemption if applicable
5. Apply the progressive tax brackets to the taxable amount
6. Divide the annual tax by 12 to get the monthly income tax deduction
7. Net salary = Gross salary − Social Security − Monthly Income Tax

Termination & End of Service

• Minimum one month's written notice for termination of indefinite-term contracts by either party (Article 23)
• Fixed-term contracts terminate automatically at expiry without notice
• End of Service Indemnity (employees not covered by Social Security): one month's last salary for each year of service, pro-rata for partial years
• Employees covered by Social Security: SSC pension benefits replace the end of service indemnity
• Arbitrary (unfair) dismissal compensation: half a month's wage per year of service, minimum 2 months' wages
• Employees dismissed for gross misconduct (Article 28) forfeit notice pay and arbitrary dismissal compensation, but may retain their end of service indemnity under Article 32

Compliance Checklist

• Annual leave configured at 14 working days, increasing to 21 days after 5 years of continuous service
• Sick leave set at 14 days full pay, renewable for 14 additional days at full pay if hospitalized or with approved medical committee report, for up to 28 days total
• Maternity leave set at 10 weeks (70 days) full pay
• Paternity leave set at 3 days
• Overtime capped at 30 mandatory days/year with 10-hour daily maximum for inventory, balance sheet, and clearance sale scenarios (Article 57)
• Overtime rates applied: 125% weekday, 150% weekend and holiday
• Social security deducted at 7.5% (employee) and 14.25% (employer), salary ceiling JOD 3,668
• Tax exemptions configured: JOD 9,000 personal / additional JOD 9,000 for dependents
• Progressive tax brackets applied: 5%, 10%, 15%, 20%, 25%, 30%
• National Contribution Tax of 1% applied on taxable income exceeding JOD 200,000
• One-month written notice period enforced for terminations
• End of service indemnity calculated at one month's pay per year of service (non-SSC employees)