December 5 2022 12:41 AM E-paper Subscribe Sign in My Account Sign out

Amendment to SSC law to positively impact subscribers and retirees – Rahahleh

1 SSC
(Photo: Jordan News)
AMMAN — Proposed amendments to the Social Security Law aim to ensure all workers, their families and retirees are protected, and guarantee the system’s financial sustainability, said Hazem Al-Rahahleh, director general of the Social Security Corporation (SSC), according to Al Ghad. اضافة اعلان

“The Social Security Corporation has started taking steps and procedures to include all the workforce under its umbrella, to provide the necessary means of protection for workers and family members, and for all members of society,” Rahahleh said while addressing the board of the Jordan Chamber of Commerce Tuesday.

He said the SSC was created to provide social protection for every worker in the Kingdom without regard to gender or nationality.

The amendment allows for the lowering of companies’ SSC contributions across a wider segment and all age groups, in the event economic growth slows in the Kingdom. The aim being to stimulate the economy.

Rahahleh said the amendment enhances insurance benefits provided by the SSC and will impact subscribers and retirees positively. He said that the proposed amendments will also ensure financial sustainability of programs, incentivization of companies, responsiveness to and protection for subscribers.

The amendment focused on raising the early retirement age to 55 for men and 52 for women. This amendment will not include those whose service exceeds 10 years, or 120 contributions as off January 1, 2022.

He pointed out that the proposed amendment abolished early retirement for those whose contributions by January 1, 2025 are less than 36 contributions, noting that early retirement has become a challenge for the SSC and has become the norm in the country, while retirement at old age is the exception.

To incentivize private sector companies, the amendment would allow them to partially include workers under the age of thirty in old-age pension programs, which would result in a reduction in the percentage of contributions employers pay from 21.75 percent to 13.5 percent. 

Rahahleh said that companies can include workers under 30 in full or partial cover. In the event of partial coverage, 50 percent of a worker’s old-age pension is calculated, provided the worker’s rights in coverage for work injuries, maternity, unemployment, disability and death, are preserved in full.


He said the proposed amendment to the law would include amending the annual inflation increase to be calculated according to the average rate of inflation and the rate of growth in wages, which would result in a higher increase than the current law on retirees' salaries permits.

It will also link early retirement salaries to the annual increase in inflation, so that it is inversely related to wages. The full annual increase is granted on salaries that are under JD300, 75 percent of the annual increase is granted on salaries between JD300 to JD500, while 50 percent of the annual increase on salaries is granted on salaries between JD500 and JD1000. Early retirement salaries that exceed JD1,000 are linked to inflation at the time when the subscriber reaches the compulsory retirement age.

The SSC recently proposed to the Council of Ministers, extending the “Estidama” and “Estidama Plus” programs until the end of June 2022, Rahahlah said.

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