Jordan

Old Age, Disability, and Survivors

Regulatory Framework

First laws: 1978, 2001, and 2010.

Current law: 2014 (social security).

Type of program: Social insurance system.

Note: A means-tested benefit is paid to certain elderly persons, persons with disabilities, and survivors under Family Allowances.

Coverage

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

Voluntary coverage is available.

Exclusions: Casual labor.

Special systems for civil servants and military personnel.

Source of Funds

Insured person: 6.5% of gross monthly covered earnings; 17.5% for the voluntarily insured.

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

The national monthly minimum wage is 220 dinars for citizens and 150 dinars for noncitizens.

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

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

Self-employed person: 17.5% of gross monthly covered earnings.

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

The national monthly minimum wage is 220 dinars for citizens and 150 dinars for noncitizens.

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

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

Employer: 11% of gross monthly covered payroll. Employers of workers in hazardous professions pay an additional 1%.

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

The national monthly minimum wage is 220 dinars for citizens and 150 dinars for noncitizens.

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

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

Government: Finances any deficit; contributes as an employer.

Qualifying Conditions

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

Contributions may be retroactively purchased under certain conditions.

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

Dependent's supplement: Paid for 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 paid contributions; age 45 with at least 300 months of paid contributions; or age 45 with at least 216 months (men) or 180 months (women) of paid contributions and at least 60 months of paid 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 paid contributions.

Pension supplement: Paid to supplement the old-age pension.

The old-age pension is payable abroad.

Old-age settlement: Age 60 (men) or age 55 (women) and does not meet the contribution requirement for the old-age pension.

Disability pension: Must be assessed with a total incapacity for work in the usual occupation due to a nonwork-related disability, have at least 60 months of contributions, including at least 24 consecutive months of contributions, and apply within six months of ceasing employment.

Partial disability: A reduced pension is paid if the insured is assessed with a partial incapacity for any work due to a nonwork-related disability.

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

Pension supplement: Paid to supplement the disability pension.

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

The disability pension is payable abroad.

Disability settlement: Must be assessed with a total or partial incapacity for work due to a nonwork-related disability and not meet the contribution requirements for the disability pension.

Survivor pension : The deceased received or was entitled to receive an old-age or disability pension, or was in covered employment at the time of death and had at least 24 months of contributions, including at least six consecutive months of contributions.

Eligible survivors include a widow; a disabled widower with no income; sons up to age 23 (no limit if disabled); unemployed, dependent daughters who are unmarried, widowed, or divorced; dependent brothers younger than age 18; dependent sisters; and parents.

The pension for a widow, daughter, or sister ceases upon (re)marriage but is resumed if she is later widowed or divorced.

Pension supplement: Paid to supplement the survivor pension.

The survivor pension is payable abroad.

Survivor settlement: Paid to eligible survivors if the deceased did not meet the contribution requirements for an old-age or disability pension at the time of death.

Funeral grant: Paid when an insured person dies.

Old-Age Benefits

Old-age pension: The monthly pension is the sum of 2.5% of the insured's average monthly earnings up to 1,500 dinars and 2% of average monthly earnings above 1,500 dinars, multiplied by the insured's months of contributions divided by 12.

Average monthly earnings are based on the insured's earnings in the last 36 months.

Dependent's supplement: 12% of the old-age pension is paid for the first dependent (at least 10 dinars and up to 100 dinars) plus 6% each for the second and third dependents (at least 10 dinars and up to 25 dinars for each person).

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

Pension supplement: 40 dinars a month is paid; 20 dinars a month if the insured is younger than the normal retirement age.

Benefit adjustment: Pensions are adjusted in May every year based on changes in the consumer price index or the annual growth in the legally defined average covered wage, whichever is lower.

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 with less than 10 years of contributions; 12% of average annual earnings with 10 to 18 years; or 15% of average annual earnings with more than 18 years of contributions.

Permanent Disability Benefits

Disability pension: The monthly pension is 50% of the insured's average monthly earnings up to 1,500 dinars plus 30% of average monthly earnings above 1,500 dinars.

Average monthly earnings are based on the insured's earnings in the last 36 months.

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% for each full year of contributions with at least 120 months of contributions.

Partial disability: 75% of the full disability pension is paid.

There is no maximum disability pension.

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

Pension supplement: 40 dinars a month is paid.

Benefit adjustment: Pensions are adjusted in May every year based on changes in the consumer price index or the annual growth in the legally defined average covered wage, whichever is lower.

Disability settlement: If the insured has at least two years of contributions, a lump sum of 15% of the insured's average monthly earnings in the last two years before the disability began multiplied by 24 is paid. If the insured has less than two years of contributions, 15% of the insured's average monthly earnings over the whole contribution period multiplied by the number of months of contributions is paid.

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% for each full year of contributions 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.

Pension supplement: 40 dinars a month is paid.

Benefit adjustment: Pensions are adjusted in May every year based on changes in the consumer price index or the annual growth in the legally defined average covered wage, whichever is lower.

Survivor settlement: If the deceased had at least two years of contributions, a lump sum of 15% of the deceased's average monthly earnings in the last two years before death multiplied by 24 is paid. If the deceased had less than two years of contributions, 15% of the deceased's average monthly earnings over the whole contribution period multiplied by the number of months of contributions is paid.

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

Administrative Organization

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

Sickness and Maternity

Regulatory Framework

First law: 1978.

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

Type of program: Social insurance (cash maternity benefit) and employer-liability (cash sickness benefits) system.

Note: Children younger than age six and certain needy persons receive limited health care services free of charge under a separate health insurance program.

Coverage

Social insurance (cash maternity benefit): Private-sector employees and citizens of Jordan working at diplomatic missions or for international organizations.

Exclusions: Self-employed persons and casual labor.

Special systems for certain civil servants and military personnel.

Employer liability (cash sickness benefit): Private-sector employees.

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

Special systems for certain civil servants and military personnel.

Source of Funds

Insured person

Social insurance (cash maternity benefit): None.

Employer liability (cash sickness benefit): None.

Self-employed person

Social insurance (cash maternity benefits): Not applicable.

Employer liability (cash sickness benefits): Not applicable.

Employer

Social insurance (cash maternity benefit): 0.75% of gross monthly payroll.

Employer liability (cash sickness benefit): The total cost.

Government

Social insurance (cash maternity benefit): Finances any deficit.

Employer liability (cash sickness benefit): None.

Qualifying Conditions

Cash sickness benefit (employer liability): Must be currently employed and provide a medical certificate.

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

Sickness and Maternity Benefits

Sickness benefit (employer liability): 100% of the employee's last earnings is paid for up to 14 days a year; may be extended to 21 days with five years of service with the same employer.

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

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 and collect contributions.

Work Injury

Regulatory Framework

First law: 1978.

Current law: 2014 (social security).

Type of program: Social insurance system.

Coverage

Private-sector employees and apprentices, self-employed persons, and citizens of Jordan working at diplomatic missions or for international organizations.

Exclusions: Casual labor.

Source of Funds

Insured person: None.

Self-employed person: Pay variable contributions depending on the assessed degree of risk. The average contribution rate for the self-employed is 2.0% of gross monthly covered earnings.

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).

Government: Finances any deficit.

Qualifying Conditions

Must be assessed with a work injury or occupational disease. Accidents that occur while commuting to and from work are covered.

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 insured's monthly earnings on the day the disability began is paid.

Constant-attendance allowance: 25% of the permanent disability pension, up to the national monthly minimum wage, is paid if the insured requires the constant attendance of others to perform daily functions.

The national monthly minimum wage is 220 dinars for citizens and 150 dinars for noncitizens.

Partial disability: For an assessed loss of working capacity of 30% to 74%, 75% of the insured's monthly earnings on the day the disability began multiplied by the assessed loss of working capacity 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 the disability began multiplied by the assessed loss of working capacity 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 monthly covered earnings on the day the disability began 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; sons up to age 23 (no limit if disabled); unemployed, dependent daughters who are unmarried, widowed, or divorced; dependent brothers younger than age 18; dependent sisters; and parents.

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

Pension supplement: 40 dinars a month is paid.

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

Administrative Organization

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

Unemployment

Regulatory Framework

First law: 1978.

Current law: 2014 (social security).

Type of program: Social insurance system.

Coverage

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

Exclusions: Public-sector employees, self-employed persons, and casual labor.

Source of Funds

Insured person: 1% of gross monthly covered earnings.

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

The national monthly minimum wage is 220 dinars for citizens and 150 dinars for noncitizens.

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

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

Self-employed person: Not applicable.

Employer: 0.5% of gross monthly covered payroll.

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

The national monthly minimum wage is 220 dinars for citizens and 150 dinars for noncitizens.

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

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

Government: Finances any deficit.

Qualifying Conditions

Must be younger than the normal retirement age with at least 36 months of old-age contributions and at least one month of unemployment contributions before the unemployment began.

Unemployment Benefits

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

Administrative Organization

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

Family Allowances

Regulatory Framework

First law: 1986 (national aid fund).

Current law: 2017 (financial aid).

Type of program: Social assistance system.

Coverage

Needy citizens of Jordan.

Source of Funds

Insured person: None.

Self-employed person: None.

Employer: None.

Government: The total cost.

Qualifying Conditions

Recurring cash assistance (means tested): Paid to older persons, persons with disabilities, widows, orphans younger than age 18, and certain families assessed as vulnerable. Families must meet a series of requirements related to health, education, nutrition, and civic responsibilities.

Means test: Family income and assets must not exceed certain limits.

Emergency cash assistance (income tested): Paid to certain vulnerable families requiring emergency assistance.

Income test: Monthly family income must not exceed a certain limit.

Family Allowance Benefits

Recurring cash assistance (means tested): 45 dinars to 200 dinars a month is paid depending on household circumstances and the number of eligible beneficiaries.

Under certain conditions, an additional benefit of up to 100 dinars may be paid every three months.

Emergency cash assistance (income tested): A lump sum of 100 dinars to 1,200 dinars is paid depending on household circumstances.

Under certain conditions, an additional lump sum of up to 200 dinars may be paid.

Administrative Organization

Ministry of Social Development (http://www.mosd.gov.jo/) provides general supervision.

National Aid Fund (http://www.naf.gov.jo/) administers the program.