Setting up and managing payroll in Jordan
If your organization is planning a Jordan expansion, one of the first things your organization will need to do is start hiring a workforce in Jordan. This generally means you’ll have to establish a legal entity in the country, set up a payroll, and follow various administrative procedures. Collectively, these processes can take weeks, potentially delaying your expansion efforts and costing you in lost revenues.
At Horizons, we specialize in helping organizations spanning all industries expand internationally, including into Jordan. We can handle your payroll setup and management, even if you don’t have a legal entity in Jordan.
Why choose the Horizons payroll solution?
If you have an entity
If your company already has a legal entity registered in Jordan then we can help you with the next steps. Our team will set up and manage your payroll, as well as any associated HR and compliance work to help you focus on the important job of expanding your business in Jordan.
If you don’t have an entity
If you don’t have a registered entity in Jordan, you can use our full payroll outsourcing service. Our Jordanian subsidiary will act as employer of record for your employees, and our team will handle the HR, administration, and complex legal compliance work.
Choose this service for a low-risk, flexible, and scalable solution for your Jordanian payroll setup and management, with all the benefits of hiring locally and none of the usual complications.
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Jordan payroll guide
What are the tax and withholding rules in Jordan?
Income tax for employees in Jordan is progressive, with rates between 5% and 30% depending on income level. Anybody earning over 200,000 dinars per year must pay an additional 1% national tax.
The corporate tax rate in Jordan is 20% for most companies, but there are different rates for specific types of businesses such as banks.
Contractual rights and termination regulations
The notice period prior to terminations in Jordan is generally one month.
How to establish a payroll in Jordan
Setting up a payroll in Jordan is a complex process, and you will need to deal with language, cultural, and procedural differences if you want to set it up yourself. You will need to first register an entity in Jordan, then register with the appropriate tax authorities, and so on.
These initial processes can take weeks or months to finish, which could significantly stall your expansion progress.
Alternatively, you can outsource your payroll setup to Horizons and avoid the complex setup and management process. Using our Jordanian subsidiary as your employer of record, you can benefit from our solutions even if you don’t have a legal entity in Jordan. Additionally, we can set up and run your payroll, HR, compliance, and any other associated work, allowing you to work on successfully expanding your businesses in Jordan.
Manage payroll in Jordan
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.