Social Security Corporation
Social Security Corporation
"The time has come to establish a legislative framework that embodies social security, which guarantees the worker and citizen good comfort and tranquility in the event of illness, disability, or old age, and provides the members of his family decent living.”
His Majesty the late King Hussein Bin Talal, may God rest his soul
Concept of social security
Social security is a group of social insurances; each one of which ensures and responds to a need or needs of the citizen; within such a legislative framework that defines the rights and obligations, and strikes a balance between them.
Therefore, social security is a general cooperative insurance scheme aimed at protecting individuals socially and economically. The law defines its advantages and sources of funding. The government establishes institutions under this scheme to provide these benefits in the event of a social hazard, such as; old age, disability, death, occupational injury, unemployment, etc. These benefits are financed from contributions paid by the insured persons and employers. Ultimately, this scheme aims at achieving social welfare.
Social Security in Jordan
The Social Security Law was promulgated in Jordan in 1978 (Interim Law No. 30 of 1978), then Law No. (19), of 2001. Subsequently, the interim amended law No. (26), of 2009 was promulgated, the interim Law No. 7 of 2010, and finally Law No. (1), of 2014 which entered into effect on 1/3/2014.
An inclusive social security that is pioneering in service, protection and sustainability and one that contributes to overall development of the Kingdom.
A national institution that implements a cooperative insurance model based on partnership with the relevant bodies, a scheme that caters for the needs of both the insured and enterprises, and contributes to social security and economic development of the Kingdom.
Our Core Values
Justice and equality
Spirit of initiative and creativity
Sense of belonging
Social security objectives:
• Secure the basic needs of the insured and his/her family members by providing regular and continuous income.
• Contribute to the functional stability of the working individual as an incentive for work.
• Consolidate the worker's relationship with the employer.
• Deepening the values of social solidarity among members of the same society and ensuring inter-generational wealth distribution.
• Contribute to reducing pockets of poverty in society.
• Contribute to economic and social development.
Principles and foundations of social security:
Through self-financing of its programs utilizing the contributions deducted and the proceeds of their investment
By covering all members of society with social protection systems
Through the contribution of all production parties in the financing of social security programs, and establishing the foundations of social and economic stability
By maintaining elaborate balances between revenues and expenditures
• Positive correlation:
Between pension and wage rates, by adopting the formula of the amount of salary divided by the average salary.
Subscription is mandatory for the target groups under legal legislation issued by the competent authorities of the State.
• Compulsory savings:
Social security systems are based on the principle of compulsory saving through monthly deductions for workers covered; which covers them against social risks.
Through the transfer of contributions between the pension funds, especially the official ones according to approved insurance equations
In social security systems have become part of the legal, social and economic legislation of the vast majority of countries around the world, as the similarity of the systems allow for reciprocity of benefits through bilateral or inter-State programs.
Organizational structure (Administrative organization) of the Social Security Corporation
The Social Security Corporation has its own independent juridical personality; and thus it’s financially and administratively autonomous. The Corporation is managed by a board of directors headed by the chair person and the membership of:
• The Director General as deputy-chair of the board
• President of the Investment Fund.
• Deputy Governor of the Central Bank’s investment department.
• A representative of the armed forces and the security agencies designated by the Council of Ministers.
• Two representatives of trade unions, designated by the heads of such unions, one of whom shall be an employer and the other a worker.
• Four workers representing the General Federation of Trade Unions.
• Four representing employers, two are selected by the Jordan Chamber of Industry, and the other two are selected by the Jordan Chamber of Commerce.
Functions of the Corporation’s Board of Directors
• The Board shall supervise the affairs of the Corporation and it`s operating/ activities. To that end, it shall also be granted all powers and functions required, including:
• Approving the general insurance policies of the Corporation.
• Approving the general investment policies of the Corporation; to maximize the market value of assets, set investment objectives, and identify criteria, mechanisms and determinants of investments.
• Monitoring the investment process to maximize the portfolio, hedging and tracking, and achieve the objectives of investment policy.
• Approving the general plan to invest the funds of the Corporation.
• Approving the organizational structure and the table of job formations and description of tasks and responsibilities in the Corporation.
• Appointing insurance and actuarial experts to examine and prepare the financial position of the institution.
• Approving the annual budget of the Corporation with a description of the different disbursements aspects and amounts allocated to each.
• Approving the annual report and the final financial statements of the Corporation.
• Appointing an external legal auditor to audit the accounts of the Corporation. In addition to proposing draft regulations for the Corporation.
• Submit quarterly reports to the Council of Ministers and both the upper and lower House of Parliament to include the following:
1. Statements and financial accounts
2. Key results related to investment performance.
3. The extent to which the performance of portfolio managers is conforming to the target values in the overall investment plan.
4. Statement of investment policy for the next phase.
5. Report of the External Auditor on the financial position of the Corporation.
6. Quarterly reports of both the Control Committee and the Investment Board.
7. Investment policies, standards and procedures.
8. Analysis and reconciliation of both assets and liabilities.
9. A decision of the Board confirms that all investments made during the previous period are consistent with the investment policy, standards and procedures in accordance with the law and regulations, decisions and instructions. It also shows any defect if any.
Issue executive, organizational, financial, management, technical and investment instructions of the Corporation in order to achieve its objectives.
Propos draft laws and regulations of the Corporation.
Delegation of authorized signatory in financial, judicial and administrative matters.
Form permanent and temporary committees and determine their duties, powers and compensations.
Establish good governance principles and standards in the Corporation, including policies to prevent potential conflicts of interests, and develop procedures to reduce such conflicts.
Approve the Corporation’s investments and assets guidebook, and develop it whenever the need arises.
Any other powers vested therein under the provisions of the law, as well as the regulations and instructions issued pursuant thereto.
Boards and committees in the Corporation
1. Insurance Board:
Within the Corporation, a Board shall be formed under the title (the Insurance board) headed by the Director General and the membership of:
Secretary General of the Ministry of Health
Two selected by the Board from among its members, one of whom shall be a representative of the workers and the other of employers.
Three exogenous subject-matter expert members; appointed by the Council of Ministers upon the recommendation of the Board.
* The Insurance Board shall assume the following functions and powers:
Propose the insurance policy and submit it to the Board for approval.
Supervise the implementation of the insurance policy and the development of plans and programs necessary for the implementation and follow-up on the policy.
Recommend to the Board the approval of the corporation`s draft annual budget for the insurance side, indicating the different disbursement items and the amounts allocated to each.
Submit periodic reports to the Board on insurance activities and functionality.
Review the annual report on insurance sector and the final financial statements related to this end, and recommend approval to the Board of Directors.
Nominate insurance committees, according to executive instructions.
Prepare draft executive instructions for the insurance sector to ensure objectives of the Corporation are achieved, and submit such instructions to the Board of Directors.
Any other powers delegated by the Board of Directors or vested therein under executive regulations and instructions issued in accordance with the provisions of the relevant Law.
2. Board of Social Security Funds’ Investment:
A Board called the Social Security Funds` Investment Board shall be established in the Corporation which shall consist of:
Chairman of the Investment Fund as Deputy Chairman of the Board of Social Security Funds’ Investment.
Two selected members by the Board from among its members, one of them shall be a representatives of workers, and the second of employers with experience, competence and knowledge in investment.
Five exogenous subject-matter expert members appointed by the Council of Ministers upon the recommendation of the Board, provided that the Council of Ministers designates one of them as Chairman of the Investment Board.
* The Investment Board shall have the following functions and powers:
Set the investment policy of the Investment Fund and submit it to the Board for approval.
Set the overall plan for investing the Corporation’s funds, and submit it to the Board for approval.
Supervise the implementation of the investment policy of the Corporation and the development of plans and programs necessary for the implementation and follow-up on such policy.
Make investment decisions necessary to implement the investment policy of the Corporation and its overall plan in accordance with the provisions of the law and the regulations issued pursuant thereto.
Recommend to the Board the approval of the draft annual budget of the Investment Fund with a description of the different disbursement items and amounts allocated to each.
Submit periodic reports to the Board on the activities and performance of the Investment Fund.
Review the annual report on the Investment Fund and the relevant final financial statements, and recommend to the Board for approval.
Nominate the committees necessary for investment work in accordance with executive instructions.
Prepare draft executive instructions for the investment fund in order to achieve the objectives of the Corporation and submit them to the Board.
Any other powers delegated by the Board or vested therein under the executive regulations and instructions issued under the provisions of the Law.
3. The Control Committee:
The Board shall form a committee from among its members called (The Control committee). The committee shall consist of three members with a three-year term in office, renewable once. The Control Committee shall elect its Chairman from amongst its members and shall meet at his invitation at least once every two months.
* The Control Committee shall assume the following functions and powers:
Monitor the financial and investment management of the Corporation and audit its financial reports, including its closing financial statements, before presenting them to the Board.
Review the internal audit reports of the Corporation and rules of governance, and express opinion in the Corporation’s financial systems, the general accounting plan, and accounting rules, and submit such opinion to the Board.
Exercise any other powers vested therein under the provisions of the law and the regulations and instructions issued pursuant thereto.
4. Good Governance Committee:
The Board shall form a committee called the "Good Governance Committee" chaired by one of its members, two members of the Insurance Board and two members of the Investment Board. The term of membership of this committee is three years, renewable once.
The Good Governance Committee shall have the following functions and powers:
Recommend to the Board the principles and standards of good governance in the Corporation for approval, and establish the checks and mechanisms that promote adherence to these principles and standards.
Set such policies to prevent conflicts of interest and oblige the required declarations by members of the Board of Directors, the Insurance Board and the Investment Board, and ensure compliance with such policies.
Review the organizational structure of the Corporation in terms of distribution of responsibilities and delegation of powers, and ensure having such mechanisms and policies for sound evaluation of performance and accountability.
Develop public policies related to the Corporation’s disclosure of its activities.
Ensure availability of a code of conduct governing professional ethics and behavior, and disseminate the same to all employees of the Corporation.
Submit an annual report on good governance in the Corporation to the Board.
Lay such principles that regulate the representation of the Corporation in boards of directors of the subscriber companies, including the evaluation of the persons proposed to represent the Corporation.
Any other functions or powers assigned thereto by the Board.
Categories covered by law:
Each of the categories listed below shall be mandatorily subject to the provisions of the law, provided that the individual is at least 16 years old, without any discrimination on grounds of nationality:
All workers subject to the provisions of the Labor Law in force
Persons who are actively employed but not subject to pension under the provisions of the Civil pension Law or the Military Retirement Law.
Jordanian persons employed by regional and international delegations, Arab and foreign political and military missions operating in the Kingdom, as well as in military attaché’s offices, technical and educational centers subsidiary thereof.
Self-employed persons, employers and joint partners working in their enterprises, whose mandatory coverage began as of 1/1/2015 under the Social Security Law currently in force, and the system of coverage by Social Security Corporation issued by virtue thereof.
Categories not covered by the Social Security Law
1. Persons who make pension contributions in accordance with the provisions of the Civil Retirement Law or the Military Retirement Law
2. Non-Jordanian persons working in regional and international delegations, Arab and foreign political or military missions operating in the Kingdom, as well as in military attaché’s offices, and their technical and educational centers.
3. Workers whose relationship with the employer is irregular. The relationship is considered to be regular according to the following:
a. Casual daily laborers if the worker performs 16 days or more per month.
b. Workers by hour, by piece, by load, or similar method of compensation, if the worker works 16 days or more per month, regardless of the number of work hours, pieces or loads per day.
c. Worker who earns a monthly wage, regardless of the number of work days per month; except for the first month of employment, in which case the principle of 16 or more working days shall apply.
Wages subject to social security
The wage is the monetary or in-kind remuneration that the insured receives against work. The deductible wage includes all that the insured receives, provided that:
Generality: To be paid to all workers or a class of them on a uniform basis.
Stability: The entity shall not have the power to grant or deny the allowance (to become integral part of the remuneration).
Continuation: Disbursed on a continuous and stable basis.
Entitlement: Meaning the insured practice of the job against which the allowance is paid.
The conditions, controls and determinants of deductible remuneration:
It shouldn`t/ not to be less than the minimum wage currently approved which is (220) JODs, and not exceeding the current maximum limit (3186) JODs, which is the ceiling of the deductible wage. This ceiling is linked to annual inflation).
Excluded from the maximum threshold of deductible wage (3186) JODs:
1. Insured covered by insurance prior to 1/5/2010 and did not exceed the salary (5000) JODs, in which case the maximum limit of the salary on which basis the contributions are calculated is 5,000 JODs.
2. The wage of the insured who exceeded (5,000) JODs per month before 1/5/2010 on which basis the contributions were calculated shall be endorsed, provided that no increase in such remuneration shall be considered after that date.
3. If the wage of the insured under items (1) and (2) reaches the upper limit of the wage, it shall be linked to inflation.
4. If the insured's wage falls below the upper limit of the wage which he has reached within the limits prescribed by law, the insured shall retain the right to such extent in the event the wage increases back.
Percentage of monthly deductions applicable to workers and employers
1. The percentage of deductions applicable to employers from the insured's deductible wage;
• (11%) for old age, disability and death insurance.
• (2%) for occupational injury insurance.
• (0.75%) for maternity insurance. (This doesn’t include employees in government departments and official and public institutions).
• (0.5%) for unemployment insurance. (Not including employees in government departments and official and public institutions).
2. The percentage of deductions borne by the insured from the deductible wage:
• (6.5% for old age, disability and death insurance.
• (1%) for unemployment insurance.
Adding up to 21.75% of the monthly wage of the worker
3. The percentage of deductions borne by self-employed individuals, employer and joint partners working in their own enterprises:
• (21.75%) of the monthly wage, including all applicable insurance.
• (1%) of the monthly wage of insured persons working in hazardous occupations as of 1/3/2015 shall be borne by the employer.
Benefits accrued to subscribers provided by the applicable insurance
• Insurance against work injuries:
Medical care including:
1. Costs of treatment and accommodation in hospitals according to the approved wage regulations in the Corporation.
2. Rehabilitation services and equipment.
3. Compensation of the injured person transfer from the place of work or place of residence to and from the place of treatment.
4. Daily allowance for the temporary incapacity to work at 75% of the injured worker’s daily wage.
5. Injury compensation if the disability percentage is less than 30%.
6. Total or partial injury disability pension if the disability rate reaches 30% or more.
7. Death pension in case of death as a result of the injury and payment of funeral expenses.
Old-age, disability and death insurance:
1. Old age pension
2. Compulsory retirement pension
3. Early retirement pension.
4. Total or partial natural disability pension.
5. Natural death pension and funeral expenses.
6. Lump-sum compensation for those who have not met the retirement conditions.
Shall be paid to the insured mother after birth instead of the maternity leave, regardless of the number of births, the remuneration of which shall be equal to the last deductible wage paid to her at the beginning of the maternity leave. The allowance is estimated in accordance with the periods specified in the Jordanian Labor Law in effect (currently 10 weeks). The old-age, disability, death and unemployment insurance contributions are deducted from the maternity allowance paid to the insured mother for the months of leave due to maternity. The Corporation shall also be obliged to pay the subscriptions from old age, disability, death and unemployment insurance on behalf of the insured during the period of maternity leave.
To be entitled for the maternity insurance allowance, the insured must be:
Covered by the maternity insurance during the last six months preceding the maternity leave.
The birth incident must be substantiated by an official birth certificate issued by the Department of Civil Status and Passports (in the event of birth inside the Kingdom), or otherwise an official birth certificate certified by the Jordanian Embassy and the Ministry of Foreign Affairs of the State in which the birth took place (in case of birth outside the Kingdom) or death certificate of the fetus Issued by civil status in the event of miscarriage after sixth month of pregnancy.
* Insurance against unemployment:
It provides protection to subscribers in cases of separation or dismissal from employment, so as to ensure the provision of adequate income during interruption of work and for a limited period, as well as; ensure continuity of subscription in social security during the period of disruption.
To be entitled to such allowance, the insured must:
1. Have no fewer contributions; under the provisions of the Law, than (36) actual contributions from other than voluntary subscription periods, and on an elective basis prior to the date of entitlement to unemployment allowance.
2. Must have at least one subscription in the unemployment insurance and be covered by this insurance during the last month preceding unemployment.
3. Must not have reached 60 years of age for males and 55 for females.
4. The reason for entitlement shall be the insured inability to work during the period against which the allowance is paid.
Optional/voluntary subscription for Jordanians
First: The concept of voluntary subscription:
To allow Jordanian citizen to subscribe to old age, disability and death insurance in person/ in a personal capacity in order to enable them to avail social security benefits, such as pensions and morbidity allowances, providing the subscriber and dependent family members with an appropriate social protection umbrella.
Second: Categories entitled to subscribe on a voluntary basis:
1. Any Jordanian, whether resident within or outside the Kingdom, provided that he / she is at least 16 years old and not older than 60 for males and 55 years old for females if subscribing for the first time.
2. The insured Jordanian who was previously covered by social security but deduction was ceased, and wants to be re-included optionally. This is also available for those who turned (60) for males and (55) for females or above, for the purpose of obtaining the pension.
3. Owners of enterprises from Jordanians subject to the provisions of any mandatory pension insurance system; under the provisions of the legislations in force, such as the pension schemes of some professional syndicates.
Third: Insurance benefits covered by voluntary subscription:
1. Old age pension and early retirement pension.
2. Total natural disability pension.
3. Permanent natural partial disability pension.
4. Natural death pension.
Fourth: Principles and rules of voluntary subscription:
1. The applicant shall be covered by the provisions of the law from the beginning of the month following the date of submitting the application, subject to the Corporation’s approval.
2. The voluntary subscriber shall pay the full amount of the subscription for the first month at least during the first 15 days of the month following the date of subscription. Otherwise, the application shall be null and void.
Monthly contributions assessed for voluntary subscription against old-age, disability and death insurance shall be paid by the insured at a rate of (17.5%) of the wage at which the insured was subscribed.
The subscriber may pay any amounts in advance.
3. The Insured shall be entitled to increase deductible remuneration by a percentage not exceeding (10%) per annum from the beginning of January of each year, provided that the application for increase shall be submitted within a maximum period of fifteen (15) days of February 1st of that year. The subscriber may also cancel the increase request during the same period of the same year.
4. The Insured shall pay the monthly contributions within the first fifteen days of the month following the entitlement. In case of delay, the subscriber shall pay a delay interest of (1%) per month for contributions that have been delayed.
The applicant shall be covered by the provisions of the law from the beginning of the month following the date of submitting the application,subject to the Corporation’s approval.
Fifth: Applying for voluntary subscription:
The application form is available via the e-Services tab at: www.ssc.gov.jo
Makah St. – Near Aramex - Khalil Al-Salem St. – Bldg. # 12
(962) 6 550 1880
(962) 6 550 1888
- PO Box
- Dahiat al-Hussein - Khalil Al-Salim Street - Building No. 12
- 5501880 (962)
- ZIP Code
- 5501880 (962)