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Jordan – Social Security Caps Alert for Year 2021.
Effective from January 1, 2021, the Kingdom of Jordan has increased the maximum monthly salary amount that is subject to social security contributions from JOD 3,338 to JOD 3,349. The new maximum applies to employees who were enrolled with the Jordanian Social Security Corporation (“SSC”) by their first employer in the country after October 15, 2009. For employees registered with SSC before October 15, 2009, the monthly salary cap remains at JOD 5,000. The revised maximum salary is subject to social security and applies to all compensation received after January 1, 2021.
| Employee Registered with SSC Before 15.10.2009 (Monthly Amount in JOD) | Employee Registered with SSC After 15.10.2009 (Monthly Amount in JOD) |
|||
|---|---|---|---|---|
| Fixed compensation | 5,000.000 | 2,000.000 | 5,000.000 | 2,000.000 |
| Variable compensation | 1,000.000 | 500.000 | 1,000.000 | 500.000 |
| Total monthly compensation | 6,000.000 | 2,500.000 | 6,000.000 | 2,500,000 |
| Monthly compensation subject to social security | 5,000.000 | 2,000,000 | 5,000.000 | 2,000,000 |
| Monthly social security CAP | 5,000.000 | 5,000.000 | 3,349.000 | 3,349.000 |
| Normal Employee contribution (7.5%) | 375.000 | 150.000 | 251.175 | 150.000 |
| Normal Employer contribution (14.25%) | 712.500 | 285.000 | 477.233 | 285.000 |
Mercans’ Jordan Payroll Outsourcing Solutions
While Mercans’ Jordan Payroll Outsourcing alerts will allow you to stay on top the latest development in Jordan’s payroll regulations, you should still get in touch with Mercans’ Jordan payroll outsourcing, compliance, PEO/GEO and BPO specialists for a free consultation on setting up fully compliant payroll and HR functions. Better yet, outsource your payroll and HR activities in Jordan to Mercans and our Jordan payroll outsourcing experts will ensure that your employees will always be paid on time and in accordance with the Jordan regulations.
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Mercans Statutory Alert Social Security Caps Alert for Year 2021824.57 KB