Social Security Corporation
About the Corporation
“It is time to create a legislative framework embodying a social security ensuring comfort and reassurance for the worker and good citizen in case of illness disability, and old-age, secure decent live for his family members.”
Late King Hussein bin Talal
Social Security Concept
The Social Security is a package of social insurances, where each insurance defines and meets the citizens’ needs in accordance with a legislation outlining the obligations and rights, and sets up a balance between them.
Accordingly, the Social Security is a general insurance symbiotic system aims to protect people socially and economically where the law defines its benefits and funding sources; the government, through institutions or bodies established under this system, achieves these benefits in case of any social risk such as old-age, disability, death, work injuries, and unemployment. Such benefits are financed by contributions paid by insured persons and employers. This system is interested in the achievement of social competency considerations.
The social security in Jordan
The Social Security Law was issued in Jordan in 1978 (Temporary Law No. 30 for the year 1978), then Law No. (19) for the year 2001, followed by the amended Provisional Law No. (26) for the year 2009, and the Provisional Law No. (7) for the year 2010, and finally Law No. (1) for the year 2014 which came into force on 01.03.2014.
Comprehensive social security seeking excellence in service, protection, and sustainability, and contributes to the development advancement in the Kingdom.
A national institution applying a symbiotic insurance scheme based on partnership with concerned parties in line with the needs of the insured persons and firms, and contributes to the achievement of social security and economic development of the Kingdom.
Justice and equality
Initiation and creativity
Social Security Objectives
- Secure the basic needs of the insured and his family members by providing a regular and continuous income.
- Contribute to the job security of the workers as a motive to work.
- Enhance the relation between the employees and employers.
- Deepen the social solidarity values among the people of the community and distribute the income between the generations.
- Contribute to the reduction of poverty pockets in the community.
- Contribute to the socio-economic development.
Principles and Standards of the Social Security Systems
- Self-financed by funding its programs on the self-financing basis relying on the deducted contributions and the returns of their investment.
- Inclusiveness by covering all community members by social protection systems.
- Integrality through the contribution of all production parties in financing the social security programs and strengthening the foundations of socio-economic security.
- Sustainability by maintaining elaborated balances between incomes and expenditures.
- A Direct Relation between the pension salary and wage average, under which the salary amount depends on the wage average.
- Mandatory Subscription as the subscription is mandatory for all targeted groups under a legal legislation issued by the competent authorities in the State.
- Compulsory Saving where the social security systems are based on the principle of compulsory saving through monthly deductions of workers covered by the social security and their coverage from social risks.
- Flexibility through the conversion of subscriptions among pension funds, in particular, the official ones in accordance with approved insurance equations.
- Reciprocity in social security systems and universality, where social security systems have become part of the legal, social and economic legislations in most countries of the world, as similar systems allow reciprocal benefits through bilateral or collective programs between countries.
Administrative Organization of the Social Security Corporation
The Social Security Corporation is financially and administratively independent juridical person. The Corporation has a Board of Directors presided over by the Chairperson, and comprising the following Board members:
- The Director General; as Deputy Chairperson
- The Chairperson of the Investment Fund.
- The Deputy Governor of the Central Bank for Investment Affairs.
- A representative of the Armed Forces and security apparatuses; nominated by the Council of Ministers.
- Two representatives of trade unions; nominated by heads of trade unions; provided that one representative is an employer and the other is a professional.
- Four representatives of laborers; nominated by the General Federation of Labor Associations.
- Four representatives of employers; two of which selected by Jordan Chamber of Industry while the other two by Jordan Chamber of Commerce.
Board of Directors Responsibilities
The Board shall oversee the Corporation’s affairs and work and shall, for this purpose, be vested with all necessary powers and functions, including:
- Approving the general investment policy of the Corporation.
- Approving the general investment policies of the Corporation aimed at maximizing the market value of its assets, setting investment objectives and developing investment standards, mechanisms and determinants.
- Monitoring the investment process for the purposes of maximizing the portfolio, hedging, following up and achieving the objectives of the investment policy.
- Approving the general plan for investing the Corporation’s funds.
- Approving the Corporation’s organizational structure, personnel chart and job descriptions.
- Appointing insurance and actuarial experts for the purpose of examining and preparing the financial position statement of the Corporation.
- Approving the annual budget of the Corporation and specifying the different types of expenditures and their respective provisions.
- Approving the annual report and final financial statements of the Corporation.
- Appointing an external certified accountant to audit the Corporation’s accounts.
- Proposing the draft laws relating to the Corporation.
- Submitting quarterly reports to the Council of Ministers, House of Notables, and House of Representatives covering the following:
- Financial statements and accounts.
- Key results relating to investment performance.
- Portfolio managers’ compliance with target values provided for in the general investment plan.
- Description of the investment policy for the next phase.
- The external auditor’s report on the Corporation’s financial position.
- The quarterly reports of the Control Committee and Investment Council.
- Investment policies and standards and procedures.
- An analysis and reconciliation of assets and liabilities.
- A letter from the Board confirming that all investments in the previous period have been in line with the investment policy and standards and procedures in accordance with the law, regulations, resolutions and instructions, and identifying any discrepancy upon reporting of the same.
- Issuing the Corporation’s internal implementing and regulatory instructions, as well as financial, administrative, technical and investment regulations to ensure the achievement of the Corporation’s objectives.
- Proposing draft laws and regulations relating to the Corporation.
- Delegating an authorized signatory for financial, judicial and administrative matters.
- Setting up standing and interim committees and determining the functions, authorities and remunerations thereof.
- Approving good governance principles and standards in the Corporation, including potential conflict of interest prevention policies and procedures to end such conflicts.
- Approving the Corporation’s investment and assets manual and updating the same whenever necessary.
- Any other authorities assigned thereto under this Law and the regulations issued pursuant thereto.
Corporation Councils and Committees
1 . Council of Insurances
A council called the “Council of Insurances” shall be set up in the Corporation. Said council shall be presided over by the Director General and shall comprise the following members:
- The Secretary General of the Ministry of Health.
- Two members selected by the Board from among its members; one of which shall be from the laborers’ representatives and the other from the employers’ representatives.
- Three external experienced specialists appointed by the Council of Ministers upon recommendation by the Board.
The Council of Insurances shall undertake the following functions and authorities:
- Proposing the general insurance policy and submitting the same to the Board for approval.
- Overseeing the implementation of the Corporation’s insurance policy and developing the required plans and programs to implement and follow-up on said policy.
- Making a recommendation to the Board concerning the approval of the insurance aspect of the Corporation’s annual budget while stating the different expenditures and their respective provisions.
- Submitting periodic reports to the Board on insurance activities and job performance.
- Reviewing the part on insurance activities in the annual report and the relevant final financial statements, and making a recommendation to the Board to approve the same.
- Designating committees needed for insurance work in accordance with the Implementing Regulations.
- Drafting the Implementing Regulations of the insurance aspect to ensure the achievement of the Corporation’s objectives, and submitting the same to the Board.
- Any other authorities delegated or assigned thereto by the Board pursuant to bylaws and of Implementing Regulations issued in accordance with the provisions of this Law.
2. Social Security Investment Fund’s Council
A council called the “Social Security Investment Fund’s Council” shall be set up in the Corporation comprising the following members:
- The Chairperson of the Investment Fund; as Deputy Chairperson of the Social Security Funds Investment Council.
- The Director General.
- Two members selected by the Board; one of which shall be from the laborers’ representatives and the other from the employers’ representatives; both of which shall be competent investment specialists.
- Five external experienced specialists; appointed by the Council of Ministries upon recommendation by the Board, and the Council of Ministers shall nominate one of said members as Chairperson of the Investment Council
The Investment Council shall undertake the following functions and authorities:
- Developing the general investment policy for the Investment Fund and submitting the same to the Board for approval.
- Developing the general plan for investing the Corporation’s funds and submitting the same to the Board for approval.
- Overseeing the implementation of the Corporation’s general investment policy, and developing required plans and programs to implement and follow-up on said policy.
- Making the necessary investment decisions to implement the Corporation’s investment policy and general plan in accordance with the provisions of this Law and the regulations issued pursuant thereto.
- Making recommendations to the Board on approving the draft annual budget of the Investment Fund while stating the different expenditures and their respective provisions.
- Submitting periodic reports to the Board on the Investment Fund’s activities and performance.
- Reviewing the Investment Fund activities stated in the annual report and the relevant final financial statements, and making a recommendation to the Board on approval of the same.
- Designating the committees required for the investment function in accordance with the Implementing Regulations.
- Preparing draft implementing regulations for the Investment Fund to ensure the achievement of the Corporation’s objectives, and submitting the same to the Board.
- Any other authorities delegated or assigned thereto by the Board in accordance with the bylaws and Implementing Regulations issued pursuant to this Law.
3. Control Committee
The Board shall form a committee comprising three of its members, to be known as the “Control Committee”. The term of membership in said committee shall be three years, renewable once. The Control Committee shall elect a chairperson from among its members and shall convene upon call by its chairperson at least once every two months and whenever necessary.
The Control Committee shall undertake the following functions and authorities:
- Monitoring the Corporation’s management relating to its financial and investment affairs as well as auditing its financial reports including its final financial statements before presenting them to the Board.
- Reviewing the internal audit reports and governance rules of the Corporation and providing opinion on the Corporation’s financial regulations, general calculation schedule and its accounting principles and submitting the same to the Board.
- Exercising any other authority entrusted to it by virtue of this Law and the regulations and instructions issued pursuant thereto.
4. Good Governance Committee
The Board shall form a committee called the “Good Governance Committee” presided over by one of its members and comprising two members from the Council of Insurances and two from the Investment Council. The term of membership in said committee shall be three years, renewable once.
The Good Governance Committee shall undertake the following functions and authorities:
- Recommending Good Governance principles and standards in the Corporation to the Board for approval and establishing the controls and mechanisms needed to enhance compliance with said principles and standards.
- Developing policies aimed at preventing conflict of interests, and the declaration statements required from the members of the Board, the Council of Insurances and the Investment Council, and ensuring compliance with said policies.
- Reviewing the organizational structure of the Corporation in terms of distribution of responsibilities and delegation of authorities, and ensuring that sound performance assessment and accountability mechanisms and policies are in place.
- Developing general policies relating to the Corporation’s disclosure on its functions and activities.
- Ensuring the availability of a Code of Conduct governing professional ethics and behaviors, and circulating the same to all employees of the Corporation.
- Submitting an annual report on good governance in the Corporation to the Board.
- Setting the principles needed to regulate the process of representing the Corporation in the management and boards of directors of companies in which the Corporation has shares, including evaluating the persons nominated to represent the Corporation.
- Any other functions or authorities assigned thereto by the Board.
Categories subject to the Law
The following categories, who completed sixteen years of age, are subject to the provisions of this Law without any discrimination as to nationality:
- All laborers subject to the valid in force provisions of the labor law.
- Workers who are not subject to the retirement pension under the provisions of civil or military retirement laws.
- Jordanian persons employed by regional and international missions, foreign and Arab political or military missions operating inside the Kingdom and attaches and their affiliated educational and cultural centers.
- Self-employed individuals, employers and general partners working in their own firms, as from 1/1/2015 based on Social Security Law and Regulations on Coverage by the SSC insurances issued in accordance with it.
*(The Employer and any such person shall be covered by all insurance applicable under the provisions of the Law in the month in which he undertakes the Inclusion or from the date of seizure and inspection).
Categories not subject to the Law
- Individuals paying their retirement contributions pursuant to the civil or military retirement laws.
- Non-Jordanians employed by regional and international missions, foreign and Arab political or military missions operating inside the Kingdom and attaches and their affiliated educational and cultural centers.
- Laborers whose employment relationship with their employers is irregular. An employment relationship shall be deemed regular in the following cases:
- A day laborer working sixteen days or more in any given month.
- An hour, piece, shipment laborer or the like who works sixteen days or more in any given month; regardless of the number of working hours, pieces or shipments per day.
- A laborer who is paid on a monthly basis; regardless of the number of working days per month, with the exception of the first month of work to which the principle of sixteen or more working days per month shall apply.
Wage: The cash or in-kind remunerations received by the insured in return for his/her work. The deductible wage includes whatever paid to the insured if it meets the following requirements:
- Generality: The wage is paid for all laborers or to a certain category of the laborers on unified basis.
- Stability: The entity does not have power to grant or prevent the allowance (shall come part of the wage).
- Continuity: It is paid on a continuous and stable basis.
- The insured practices the work for which the remuneration or the allowance is assigned.
Following are the requirements, controls, and determinants of the deductible wage:
- The minimum wage shall be no less than the approved minimum wage by the Ministry of Labor (currently (220) Dinars) and no more than three thousand Dinars, the limit of the deductible wage, and shall be annually adjusted to inflation.
The following shall be exempted from the provisions of the maximum wage (three thousand eighty four Dinars):
- The insured who is covered by insurance before May 1, 2010; and his wage didn’t exceed (5000) JDS; in which case, the maximum wage based on which contributions are calculated shall be five thousand Dinars.
- The insured whose wage had exceeded five thousand Dinars before May 1, 2010, and whose contributions were calculated accordingly. Any increase in the wage of said insurance after said date shall be disregarded.
- (In the event the wage of the insured as provided for in sub-paragraphs (A) and (B) of this Paragraph reaches the maximum deductible wage, said wage shall be adjusted to inflations.)
- If the wage of the insured is less than the maximum deductible wage within the limits permitted by law, he reserved the right to this limit in case his wage rise again.
Monthly deductions by the employees and the employers- private sector
Deduction rates paid by the employer from the insured deductible wage
- (11%) for old-age, disability, and death insurance.
- (2%) for the work injuries insurance.
- (0.75%) for maternity insurance (excluding the workers of government departments, official and public institutions.)
- (0.5%) for unemployment insurance (excluding the workers of government departments, official and public institutions.)
* (1%) of the monthly wage, for workers in hazardous occupations paid by the employer as from 1/3/2015.
Deduction rates paid by the insured from the insured deductible wage
- (6.50%) for old-age, disability, and death insurance.
- (1%) for unemployment insurance.
The total rate for the social security subscription is (21.75%) of the worker’s monthly wage.
Subscriber’s Benefits of the Applied Insurances
- Work Injury Insurance
- The medical care, including the following:
- Medical treatment and hospitalization costs in accordance with the rates approved by the Corporation.
- Rehabilitation services and equipment.
- Travel expenses incurred by the injured as a result of travelling to and from his/her workplace or residence to the place where he/she receives his/her treatment.
- Daily allowances for temporary unemployment, at a rate of 75% of the injured daily wage.
- Lump sum compensation if the partial permanent work related disability is less than 30%.
- Total or partial work related disability if the disability is 30% and more
- Death pension salary upon the death of the insured and payment of the funeral expenses.
- Old-age, disability and death insurance
- Old-age retirement pension
- Mandatory old age retirement pension
- Early retirement pension
- Total or partial natural disability pension
- Natural death pension and funeral expenses
- Lump sum compensation for those who are not meeting the retirement requirements.
- Maternity Insurance
The insured female shall be paid an allowance, during her maternity leave, equivalent to her last wage subject to deduction at the beginning of her maternity leave. Such allowance is determined in accordance with the periods provided for in the applicable Jordanian Labor law (currently ten weeks). Old-age, disability, death, and unemployment insurances shall be deducted from the maternity leave allowance paid to the insured female and the firm shall pay the contributions for old-age, disability, death, and unemployment insurances during the maternity leave.
To be entitled to the maternity insurance allowance, the insured female must fulfill the following conditions:
- The insured female is covered by the maternity insurance during the last six months preceding her entitlement to the maternity leave.
- The childbirth is established by means of an official birth certificate issued by the Civil Status and Passport Department (in case the childbirth took place inside the Kingdom) or an official birth certificate certified by the Jordanian Embassy and the Foreign Ministry of the country where the childbirth took place (in case the childbirth took place outside the Kingdom), or a death certificate issued by Civil Status and Passport Department (in case the fetus was born dead after the sixth month of pregnancy).
The unemployment insurance protects the subscriber in case of dismiss or service termination. It guarantees a proper income during his /her unemployment period for a certain period of time. In addition, the unemployment insurance ensures his/her subscription in the social security during the unemployment period.
To be entitled to unemployment allowance, the insured must fulfill the following conditions:
- The number of his/her contributions, in accordance with this Law, is not less than (36) contributions prior to the date of his/her entitlement to the unemployment allowance.
- The insured has paid at least one contribution toward unemployment insurance, and is covered in this insurance in the last month preceding his/her unemployment.
- The insured has not yet reached the age of (60) for males and (55) for females.
The entitlement reason shall be valid that the insured is unemployed during the months for which he/she is paid such allowance.
Voluntary Subscription for Jordanian
First: Concept of Voluntary Subscription
Allowing the Jordanian citizen to subscribe in the old-age, disability, and death insurance to avail the benefits provided by the social security such as the pension salaries and disability salaries to enjoy a social proper protection for himself and his family members.
Second: The categories who are entitled to sign up for the voluntary subscription:
- Any Jordanian citizen residing in the Kingdom or abroad, provided that he/she has completed the age of sixteen years and not completed the age of sixty years for males and the age of fifty five years for females upon their first subscription to this insurance.
- The Jordanian insured, who was covered by the insurance and his/her deductions were suspended, and willing to subscribe to the voluntary subscription. This also allowed to the persons who have completed the age of sixty years for males and the age of fifty five for females, or more for the purposes of receiving pension salary.
- The Jordanian legal possessors of firms who are subject to the provisions of any mandatory retirement insurance scheme under the applicable legislation, such as those who are covered by the retirement schemes of some trade unions.
Third: Insurance benefits covered by the voluntary subscription:
- Old-age retirement pension and early retirement pension.
- Total natural disability pension.
- Permanent partial natural disability pension.
- Natural death pension.
Fourth: Voluntary subscription basics and rules:
- The applicant shall be considered subject to the provisions of this law at the beginning of the month in which the application is submitted, provided to obtain the Corporation’s approval.
- The voluntary subscriber shall be obligated to pay the full subscription amount of the first month within maximum of (15) days from the month following the date of submitting the application, otherwise, the application shall be considered invalid.
- The monthly contributions established for the voluntary subscription for the oldage, disability, and death insurance shall be paid by the insured at (17.50%) of the wage on which the subscription was made.
- The subscriber may pay any amounts in advance.
- The insured may increase his/her deductible wage by not more than (10%) annually as of the first of January of each year, provided that he/she submits the increase application within maximum of the first (fifteen days) of February of the same year, and he/she may cancel the application during the same period of the same year.
- The insured shall pay in full monthly contributions within the first fifteen days of the month following eligibility and in case of late payment, the insured shall pay a (1%) monthly default interest for each and every late contribution.
- The applicant shall be considered subject to the provisions of this law at the beginning of the month in which the application is submitted, provided to obtain the Corporation’s approval
Who to submit the voluntary subscription application?
- E-Services through SSC Website and mobile application.
- PO Box
- Dahiat al-Hussein - Khalil Al-Salim Street - Building No. 12
- 5501880 (962)
- ZIP Code
- 5501880 (962)