In Jordan, the social security system is governed by the Social Security Law, which aims to provide comprehensive coverage to employees against various risks and contingencies. Established in 1999, the law encompasses provisions for old age, disability, death, work injury, sickness, maternity, and unemployment benefits, thereby ensuring a safety net for workers and their dependents across different life stages and circumstances.
The Social Security Corporation (SSC) is the key entity responsible for administering the social security system in Jordan. It oversees the collection of contributions from both employees and employers, as well as the disbursement of benefits to eligible individuals. The SSC operates under the supervision of the Ministry of Labor and reports to the Prime Minister’s Office.
Coverage under the social security system is mandatory for Jordanian and non-Jordanian employees working in the formal sector, including domestic workers, agricultural workers, and certain categories of self-employed individuals. However, certain groups, such as public sector employees, members of the armed forces, and workers covered by private pension schemes, may be exempt from SSC coverage.
Contributions to the social security system are made on a monthly basis and are calculated as a percentage of the employee’s wages, subject to a maximum limit. Employers are responsible for deducting contributions from employees’ salaries and remitting them to the SSC, along with their own share of contributions. The contribution rates may vary depending on factors such as the nature of the employment, the type of risk being covered, and the applicable wage brackets.
Benefits provided by the social security system include retirement pensions, disability pensions, survivor pensions, funeral grants, medical care, cash sickness benefits, maternity benefits, and unemployment benefits. The eligibility criteria, benefit amounts, and duration of payments vary for each type of benefit and are determined based on factors such as the individual’s contributions, length of service, and specific circumstances.
Retirement pensions are granted to insured individuals upon reaching the statutory retirement age, which is currently set at 60 for men and 55 for women, with a minimum qualifying period of contributions. Disability pensions are provided to insured individuals who are medically certified as being permanently or temporarily disabled and unable to work. Survivor pensions are paid to the dependents of deceased insured individuals, including spouses, children, and dependent parents.
Funeral grants are provided to cover the costs associated with the burial of deceased insured individuals. Medical care benefits include coverage for hospitalization, outpatient treatment, diagnostic tests, medications, and medical appliances. Cash sickness benefits are paid to insured individuals who are unable to work due to temporary illness or injury, while maternity benefits are provided to female insured individuals during pregnancy and childbirth.
Unemployment benefits are available to insured individuals who become involuntarily unemployed and meet certain eligibility criteria, including having a minimum period of contributions and actively seeking employment. The duration and amount of unemployment benefits may vary depending on factors such as the individual’s previous earnings and length of unemployment.
The social security system in Jordan is funded through contributions from employees, employers, and the government. The SSC manages the contributions through a dedicated fund and invests them in various financial instruments to ensure the long-term sustainability of the system. The government may also provide subsidies to the SSC to cover any deficits in the fund or to support specific social security programs.
Overall, the social security system plays a crucial role in providing income security, healthcare coverage, and social assistance to workers and their families in Jordan, thereby contributing to poverty alleviation, social cohesion, and economic stability. Continuous efforts are made to enhance the effectiveness, efficiency, and inclusiveness of the system through reforms, legislative amendments, and capacity-building initiatives aimed at addressing emerging challenges and meeting the evolving needs of the population.
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The Social Security Law in Jordan underwent significant reforms in 2018, aiming to strengthen the sustainability and effectiveness of the social security system while expanding coverage and enhancing benefits for eligible individuals. These reforms included adjustments to contribution rates, eligibility criteria, benefit calculations, and governance structures to address emerging demographic and economic challenges facing the system.
One notable aspect of the reforms was the increase in the retirement age for women from 55 to 60, aligning it with the retirement age for men. This change was implemented gradually over several years to allow for a smooth transition and mitigate potential impacts on affected individuals. Additionally, adjustments were made to the calculation of retirement pensions to ensure fair and equitable outcomes for retirees, taking into account factors such as the individual’s average wage, length of service, and contribution history.
The reforms also introduced measures to improve the financial sustainability of the social security system, including the adoption of actuarial principles and sound investment practices to manage the SSC’s financial assets prudently. Efforts were made to diversify the investment portfolio, minimize investment risks, and maximize returns to ensure the long-term viability of the system and safeguard the interests of current and future beneficiaries.
Furthermore, the reforms aimed to enhance the governance and transparency of the social security system by strengthening oversight mechanisms, enhancing accountability, and promoting stakeholder engagement. This included the establishment of independent oversight bodies, such as the Social Security Regulatory Commission, to monitor the operations of the SSC, ensure compliance with legal and regulatory requirements, and safeguard the interests of insured individuals and beneficiaries.
In addition to these structural reforms, the Jordanian government has implemented various social protection programs and initiatives to address specific social and economic challenges, such as poverty, unemployment, and gender inequality. These programs may complement the benefits provided by the social security system and target vulnerable groups, including low-income households, marginalized communities, and individuals facing barriers to employment and social inclusion.
Moreover, efforts have been made to strengthen the integration and coordination of social security policies and programs with other sectors, such as health care, education, labor market, and housing, to provide holistic support to individuals and families in need. This includes initiatives to enhance access to quality health care services, promote lifelong learning and skills development, facilitate labor market participation, and improve housing conditions for disadvantaged populations.
The Jordanian government has also collaborated with international organizations, development partners, and civil society stakeholders to exchange knowledge, share best practices, and mobilize resources for social protection and poverty reduction initiatives. This includes participation in regional and global forums, conferences, and working groups on social security, where Jordan can contribute its experiences, learn from other countries, and advocate for policies and investments that promote inclusive and sustainable development.
Looking ahead, the Jordanian social security system faces ongoing challenges and opportunities, including demographic shifts, technological advancements, economic transformations, and global crises such as the COVID-19 pandemic. Addressing these challenges will require continued efforts to adapt and innovate the social security system, strengthen its resilience, expand coverage to vulnerable groups, enhance the quality and accessibility of benefits and services, and promote social cohesion and solidarity among all segments of society. By embracing a holistic and inclusive approach to social protection, Jordan can advance towards its goals of equitable development, prosperity, and well-being for all its citizens.