Jordan

Old Age, Disability, and Survivors

Regulatory Framework

First law: 1978.

Current law: 2014 (social security).

Type of program: Social insurance system.

Coverage

Private-sector employees, public-sector employees not covered by a special system, Jordanian citizens working at diplomatic missions or for international organizations, and self-employed persons.

Voluntary coverage is available.

Exclusions: Casual labor.

Special systems for civil servants and military personnel.

Source of Funds

Insured person: 6.5% (January 2017) of gross monthly earnings; 17.5% (January 2017) for the voluntarily insured.

The minimum monthly earnings used to calculate contributions are the national monthly minimum wage.

The national monthly minimum wage is 190 dinars.

The maximum monthly earnings used to calculate contributions are 3,000 dinars.

The maximum monthly earnings used to calculate contributions are adjusted according to changes in the consumer price index and the legally defined average covered wage for the previous year.

Self-employed person: 17.5% (January 2017) of gross monthly earnings.

The minimum monthly earnings used to calculate contributions are the national monthly minimum wage.

The national monthly minimum wage is 190 dinars.

The maximum monthly earnings used to calculate contributions are 3,000 dinars.

The maximum monthly earnings used to calculate contributions are adjusted according to changes in the consumer price index and the legally defined average covered wage for the previous year.

Employer: 11% (January 2017) of gross monthly payroll. Employers of workers in hazardous professions pay an additional 1%.

The maximum monthly earnings used to calculate contributions are 3,000 dinars.

The maximum monthly earnings used to calculate contributions are adjusted according to changes in the consumer price index and the legally defined average covered wage for the previous year.

Government: Any deficit.

Qualifying Conditions

Old-age pension: Age 60 (men) or age 55 (women) with at least 180 months of coverage, including 84 months of paid contributions.

An insured person with a minimum number of months of coverage at the normal retirement age may continue to contribute up to age 65 (men) or age 60 (women) to either qualify for, or increase the value of, the old-age pension.

Dependent's supplement: Eligible dependents include a dependent wife; a dependent, disabled husband; a son up to age 23 or disabled; an unmarried, unemployed, dependent daughter; and dependent parents, brothers, and sisters.

Early pension: Age 50 with at least 252 months (men) or 228 months (women) of contributions; age 45 with at least 300 months of contributions; or age 45 with at least 216 months (men) or 180 months (women) of contributions and at least 60 months of contributions in the last 10 years in hazardous professions. Early pensions are also paid to certain other groups before age 50, depending on the insured's age on March 1, 2014, gender, and number of contributions.

Benefits are payable abroad.

Old-age settlement: Age 60 (men) or age 55 (women) but did not meet the contribution requirements for the old-age pension.

Disability pension: Must be assessed with a total or partial incapacity for work due to a nonwork-related disability, have at least 60 months of contributions, including 24 consecutive months, and apply within 6 months of stopping work.

Constant-attendance allowance: Paid if the insured requires the constant attendance of others to perform daily functions.

The Central Medical Committee and Appeal Medical Committee assess the degree of disability.

Benefits are payable abroad.

Survivor pension: The deceased had at least 24 months of contributions, including six consecutive months.

Eligible survivors include a widow; a disabled widower with no income; sons up to age 23; an unemployed, dependent daughter who is unmarried, widowed, or divorced; dependent brothers younger than age 18; dependent sisters; and parents.

The pension for a widow, daughter, or sister ceases on marriage but is resumed if she is subsequently widowed or divorced.

Benefits are payable abroad.

Funeral grant: Paid when an insured person dies.

Old-Age Benefits

Old-age pension: The pension is 2.5% of the average monthly earnings in the last 60 months, up to 1,500 dinars, multiplied by the insured's total number of monthly contributions divided by 12, plus 2% of the amount above 1,500 dinars multiplied by the insured's total number of monthly contributions divided by 12.

Dependent's supplement: The pension is increased by 12% for the first dependent (at least 10 dinars and up to 100 dinars) and by 6% each for the second and third dependent (at least 10 dinars and up to 25 dinars for each person).

Early pension: The pension is reduced proportionally according to a schedule in law and is based on the last 60 months of contributions and the insured person's age at application.

All newly awarded pension benefits are increased by 40 dinars except for the early pension, which is increased by 20 dinars and again by 20 additional dinars at the normal retirement age.

Benefit adjustment: Pensions are adjusted in May every year according to changes in the consumer price index or the annual growth in the legally defined average covered wage, whichever is lower, but may not increase more than 20 dinars.

Early pensions are not adjusted until the pensioner reaches the normal retirement age.

Old-age settlement: A lump sum of 10% of the insured's average annual earnings is paid for each year of contributions for less than 10 years of contributions; 12% of the insured's average annual earnings for 10 to 18 years; or 15% of the insured's average annual earnings for more than 18 years of contributions.

Permanent Disability Benefits

Disability pension: For a total disability, 50% of the insured's average monthly earnings in the last 36 months is paid for the first 1,500 dinars of earnings plus 30% of the amount above 1,500 dinars. For a partial disability, 75% of the full disability pension is paid.

The pension is increased by 0.5% for each full year of contributions if the insured has 60 months to 119 months of contributions; by 1% with at least 120 months of contributions.

Constant-attendance allowance: 25% of the pension is paid.

All newly awarded pension benefits are increased by 40 dinars.

There is no maximum pension.

Benefit adjustment: Pensions are adjusted in May every year according to changes in the consumer price index or the annual growth in the legally defined average covered wage, whichever is lower, but may not increase more than 20 dinars.

Survivor Benefits

Survivor pension: 50% of the deceased's average monthly earnings in the last year of contributions is paid.

The pension is increased by 0.5% for each full year of contributions if the deceased had 60 to 119 months of contributions; by 1% with at least 120 months of contributions. If there is more than one eligible survivor, the pension is split according to a schedule in law.

All newly awarded pension benefits are increased by 40 dinars.

Benefit adjustment: Pensions are adjusted in May every year according to changes in the consumer price index or the annual growth in the legally defined average covered wage, whichever is lower, but may not increase more than 20 dinars.

Funeral grant: A lump sum of 500 dinars is paid.

Administrative Organization

Social Security Corporation (https://www.ssc.gov.jo/) administers the program.

Sickness and Maternity

Regulatory Framework

First law: 1978.

Current laws: 2014 (social security) and 1996 (sickness).

Type of program: Social insurance and employer-liability system. Cash benefits only.

Coverage

Cash maternity benefits (social insurance): Private-sector employees and Jordanian citizens working at diplomatic missions or for international organizations.

Exclusions: Casual labor.

Cash sickness benefits (employer liability): Employed persons.

Exclusions: Public-sector employees, including municipal workers; self-employed persons; family laborers; household workers; and certain agricultural workers.

Source of Funds

Insured person

Cash maternity benefits (social insurance): None.

Cash sickness benefits (employer liability): None.

Self-employed person

Cash maternity benefits (social insurance): Information not available.

Cash sickness benefits (employer liability): Not applicable.

Employer

Cash maternity benefits (social insurance): 0.75% of gross monthly payroll.

Cash sickness benefits (employer liability): The total cost.

Government

Cash maternity benefits (social insurance): Any deficit.

Cash sickness benefits (employer liability): None.

Qualifying Conditions

Cash maternity benefits (social insurance): Must have at least six months of coverage before childbirth.

Cash sickness benefits (employer liability): None.

Sickness and Maternity Benefits

Cash maternity benefits (social insurance): 100% of the insured's last covered monthly earnings is paid for up to 10 weeks.

Cash sickness benefits (employer liability): 100% of wages is paid for a period of 14 days, can be extended to 21 days for those with five years' service with the same employer.

Administrative Organization

The Ministry of Labor (http://www.mol.gov.jo/) provides general supervision for cash sickness benefits.

Social Security Corporation (https://www.ssc.gov.jo/) administers cash maternity benefits.

Work Injury

Regulatory Framework

First law: 1978.

Current law: 2014 (social security).

Type of program: Social insurance system.

Coverage

Private-sector employees and apprentices and Jordanian citizens working at diplomatic missions or for international organizations.

Exclusions: Casual labor.

Source of Funds

Insured person: None.

Self-employed person: Information not available.

Employer: At least 2% of gross monthly payroll (may be increased up to 4% depending on the employer's sector risk and implementation of occupational health and safety standards); none for wages paid to apprentices.

Government: Any deficit.

Qualifying Conditions

There is no minimum qualifying period.

Temporary Disability Benefits

75% of the insured's daily earnings is paid after a three-day waiting period until the insured resumes work, is assessed with a permanent disability, or dies. (The employer pays the insured's earnings for the first three days.)

Permanent Disability Benefits

Permanent disability pension: For an assessed loss of working capacity of at least 75%, 75% of the monthly earnings on the day of the injury is paid.

Constant-attendance allowance: 25% of the pension is paid, up to the national monthly minimum wage.

The national monthly minimum wage is 190 dinars.

Partial disability: For an assessed loss of working capacity of 30% to 74%, 75% of the insured's monthly earnings on the day of the injury multiplied by the assessed degree of disability is paid. For an assessed loss of working capacity of less than 30%, a lump sum of 75% of the insured's monthly earnings on the day of the injury multiplied by the assessed degree of disability times 36 is paid.

The Central Medical Committee and Appeal Committee assess the degree of disability.

Workers' Medical Benefits

Medical treatment, hospitalization, transportation, and rehabilitation services (including artificial limbs) are provided.

Survivor Benefits

Survivor pension: 75% of the deceased's covered monthly earnings on the day of the injury is paid. If there is more than one eligible survivor, the pension is split according to a schedule in law.

Eligible survivors include a widow; a disabled widower with no income; the insured's sons up to age 23 if a student or until the completion of the first university degree, whichever is earlier; an unemployed, dependent daughter who is unmarried, widowed, or divorced; dependent brothers younger than age 18; dependent sisters; and parents.

The pension for a widow, daughter, or sister ceases on marriage but is resumed if she is subsequently widowed or divorced.

All newly awarded pension benefits are increased by 40 dinars.

Funeral grant: A lump sum of 500 dinars is paid.

Administrative Organization

Social Security Corporation (https://www.ssc.gov.jo/) administers the program.

Unemployment

Regulatory Framework

First law: 1978.

Current law: 2014 (social security).

Type of program: Social insurance system.

Coverage

Private-sector employees and Jordanian citizens working at diplomatic missions or for international organizations.

Exclusions: Casual labor.

Source of Funds

Insured person: 1% of gross monthly earnings.

Self-employed person: Information not available.

Employer: 0.5% of gross monthly payroll.

Government: Any deficit.

Qualifying Conditions

Must have at least 36 months of old-age contributions and at least one month of unemployment contributions before the date of entitlement to unemployment benefits.

Unemployment Benefits

75% of the insured's last covered monthly earnings is paid for the first month; 65% for the second month; 55% for the third month; and 45% for the fourth to sixth months. Paid for up to three months with contributions of less than 180 months; up to six months with contributions of 180 months or more.

Administrative Organization

Social Security Corporation (https://www.ssc.gov.jo/) administers the program.