Average Salary in Jordan

1. Average wages

In Jordan, the average salary can vary significantly based on occupation, experience, education, and other factors. As a developing country with a growing economy, Jordan has witnessed fluctuations in its wage structure over the years. According to recent data, the average salary in Jordan typically ranges from around 600 JOD (Jordanian Dinar) to 800 JOD per month, which translates to approximately 850 to 1130 USD at the current exchange rates.

The average monthly salary takes into account the full spectrum of jobs, from entry-level positions to high-level managerial roles. However, there remains a substantial difference between the salaries in different sectors. For example, the IT and banking sectors tend to offer higher wages compared to industries like tourism and retail, which often pay closer to the lower end of the wage scale. It's important to note that the average salary in Jordan is just a statistical measure, and individual wages can be much higher or lower.

The average monthly salary in Jordan is also shaped by the cost of living in the country. While certain areas, notably the capital city Amman, are known for their relatively high cost of living, others may be more affordable, allowing for a more comfortable lifestyle on an average salary. Additionally, expatriates working in Jordan might find their salaries to be higher than the national average, often as a result of international salary standards implemented by multinational companies operating within the kingdom.

It is also relevant to mention that, when discussing the average salary in Jordan, a distinction has to be made between public and private sector wages. Typically, public sector employees enjoy a range of benefits and job security that can compensate for what is sometimes a lower nominal salary when compared to the private sector. Private companies, on the other hand, may offer higher salaries but with varying degrees of job stability.

The statistics pertaining to the average salary in Jordan point towards an economy that is diverse and in a state of transition, reflecting both the opportunities and the challenges faced by its workforce.

2. Factors that Influence Salaries

In Jordan, as in many other countries, there are several factors that can significantly influence the salaries of employees across different sectors. Understanding these factors is crucial for both employers and employees to navigate the job market effectively.

• Educational Attainment: Individuals with higher education levels, such as a bachelor's degree or above, often command higher wages. Specialized degrees in engineering, medicine, and business are particularly valued and tend to attract higher salaries.
• Experience: Experience plays a pivotal role in determining an individual's salary. Employees with more years of experience in their industry typically earn more than those who are just starting their careers. Senior positions with managerial responsibilities are often compensated at a higher rate than entry-level roles.
• Skills and Expertise: In-demand skills can also boost earning potential. For instance, professionals with expertise in IT, programming, and language fluency (especially English) have an advantage in the job market and can negotiate higher salaries.
• Industry: Some industries offer higher wages due to the nature of the work or demand for specific skills. For example, occupations in the finance, IT, and healthcare sectors usually offer higher wages compared to hospitality, customer service, or retail.
• Occupation: Certain job roles are inherently higher paying due to their requirements and the level of responsibility they carry. Executives, physicians, and engineers often receive higher salaries than clerical staff or workers in the service industry.
• Geographic Location: Geographic disparities can influence wages. For instance, salaries in Amman, the capital city, tend to be higher compared to other regions due to the higher cost of living and the concentration of multinational corporations and government institutions.
• Gender: Gender can unfortunately play a role in salary variations, with men often earning more than women for equivalent roles, highlighting the gender pay gap.
• Public vs. Private Sector: As mentioned previously, salaries in the public sector versus the private sector can vary, with the private sector often offering higher average salaries but less job security and fewer benefits than the public sector.
• Supply and Demand: The basic economic principles of supply and demand also affect salaries. Jobs in high demand but low supply can drive up wages, whereas jobs with an oversupply of candidates may see downward pressure on wage levels.
• Company Size and Profitability: Larger and more profitable companies usually have the resources to pay their employees more than smaller businesses with tighter budget constraints.
• Legislation and Unions: Government policies and the presence of trade unions can influence minimum wages and collective bargaining agreements, ultimately impacting overall salary standards.

These factors collectively contribute to the complexity of the wage landscape in Jordan. It is important for job seekers to consider these elements when evaluating potential employment opportunities and for employers to remain competitive within their respective markets.

3. Minimal Wages (Monthly and Hourly)

In Jordan, the national minimum wage is mandated by the government and serves as the legal salary floor for most workers. As of the latest available data, the minimum monthly wage in Jordan was set at 260 JOD (Jordanian Dinar), which equates to around $366 USD depending on the exchange rate. This amount represents the lowest legal salary that employers are required to pay their employees on a monthly basis.

The hourly minimum wage is not widely used as a standard in Jordan due to the prevalence of monthly salary agreements. However, for the sake of comparison or calculations for part-time employment, it can be estimated by dividing the monthly minimum wage by the standard number of working hours in a month. The typical workweek in Jordan is Sunday through Thursday, with a standard of 8 hours per day, equating to approximately 40 hours per week.

If we assume a total of 26 working days in a month (excluding Fridays and Saturdays), this results in roughly 208 working hours per month (26 days x 8 hours/day). Dividing the monthly minimum wage of 260 JOD by 208 hours gives us an approximate hourly rate of 1.25 JOD, or about $1.76 USD.

It is important to note that these figures may vary slightly based on specific labor laws, customary work schedules, and any subsequent changes to the minimum wage rates made by the Jordanian government.

• The monthly minimum wage of 260 JOD applies to many sectors across the country.
• An approximate hourly minimum wage can be calculated for part-time jobs or overtime work.

This minimum wage is intended to ensure that workers receive a basic level of income to cover their living expenses. However, debates often arise regarding the adequacy of the minimum wage, with labor activists and certain employee groups advocating for higher minimum wages to keep up with the cost of living, particularly in urban areas like Amman.

Exceptions to the minimum wage standards might apply to certain populations such as domestic workers, agricultural laborers, and non-Jordanian employees, who are sometimes subject to separate regulations or agreements.

4. Gender Wage Gap

The issue of the gender wage gap is a significant concern in Jordan, as it is in many countries around the world. The gender wage gap refers to the difference in earnings between women and men in the workforce. This gap is often represented as a percentage that indicates how much less, on average, women earn compared to their male counterparts for doing similar work.

Several factors contribute to the gender wage gap in Jordan, including:

• Social and cultural norms: Traditional roles can influence the types of jobs that are deemed suitable for women and can also affect women's participation in the labor force.
• Workforce Segregation: Women tend to be concentrated in certain sectors which traditionally offer lower wages and fewer opportunities for advancement.
• Education and Skill Level: While educational attainment among Jordanian women is high, their skills may not always match the needs of the labor market, or they might face barriers to entering certain fields.
• Work Experience: Women often have interrupted career paths due to childbearing and family care responsibilities, which can impact their overall work experience and growth prospects.
• Labor Market Policies: Policies that do not support flexible working conditions or maternity leave, for example, can disproportionately affect women's earnings and employment opportunities.
• Lack of Representation: Women are underrepresented in leadership positions, which influences the overall gender wage dynamics and the perception of women's value in the labor market.

Quantifying the gender wage gap in Jordan presents challenges due to the variety of factors at play and differences in data collection. However, reports indicate that Jordanian women earn significantly less than men on average when compared with their participation in the workforce.

Efforts to address the gender wage gap in Jordan include legislative actions, awareness campaigns, and initiatives to empower women economically. These are geared towards creating more equitable work environments, encouraging female entrepreneurship, and ensuring that women have access to education and vocational training that align with market demands.

Despite these efforts, progress in closing the gender wage gap has been gradual, and continued focus on gender disparities in the labor market is necessary to foster a more inclusive and fair economic landscape for all Jordanians.

5. Highest Paying Occupations

In Jordan, like in many countries, certain occupations offer significantly higher salaries than others. These high-paying jobs often require specialized skills, advanced education, and considerable experience. Here is a list of some of the highest paying occupations in Jordan:

• Healthcare Professionals: Doctors, particularly specialists such as cardiologists, neurologists, and surgeons, command very high salaries due to their specialized knowledge and the critical nature of their work.
• Dentists: As with other healthcare professionals, experienced dentists with private practices can earn high incomes in Jordan.
• Engineering Managers: Those with senior roles in engineering fields, especially in sectors like energy, construction, and manufacturing, are among the top earners.
• Information Technology Managers: IT managers and executives who oversee technology strategies and operations for companies often have significant earning potential.
• Banking and Finance Experts: High-level positions in banking, investment, and financial management, such as CFOs and finance directors, receive lucrative salaries.
• Lawyers: Legal professionals, especially those at senior levels or with expertise in commercial law, have access to high wages.
• Telecommunications Engineers: Experts in telecommunications engineering, due to the growing tech sector in Jordan, are in demand and well-compensated.
• University Professors: Academics with tenure or those working at prestigious universities may earn high salaries, particularly if they have a strong publication record or hold administrative positions.
• Pharmaceutical Representatives: Professionals in pharmaceutical sales or management positions, given the robust healthcare industry, can also secure high wages.
• Chief Executive Officers (CEOs): Executives at the helm of corporations, particularly successful multinational companies, can command the highest salaries in Jordan.

This list is not exhaustive, and various other professions, such as aviation pilots, marketing directors, and construction project managers, can also offer high salaries depending on the specific context of the job, the size of the company, and the scope of their responsibilities. Those occupying senior managerial positions or possessing rare skills and qualifications tend to be at the higher end of the pay scale.

It's important to note that while these occupations offer high salaries, securing such positions often requires a combination of education, experience, and sometimes personal connections within the industry. Additionally, these roles come with a significant amount of responsibility and can involve long hours and intense workloads.

6. Annual Average Wage Growth

The annual average wage growth in Jordan provides insight into the economic trends and the evolving labor market conditions within the country. Wage growth is an indicator of how the average salary changes over time, reflecting factors such as inflation, economic development, productivity improvements, and shifts in supply and demand for labor.

In recent years, Jordan has experienced modest annual wage growth, which has been influenced by both domestic and global economic conditions. The growth rates have varied among different sectors and occupations, with some industries seeing more significant increases due to higher demand for skilled labor and others experiencing smaller gains due to market saturation or economic challenges.

• Inflation: Inflation plays a crucial role in determining real wage growth. The cost of living adjustments must be factored in to assess whether the wage increase actually corresponds to an improvement in purchasing power for the average Jordanian worker.
• Economic Growth: Economic expansion tends to lead to higher demand for labor, potentially accelerating wage growth as businesses compete to attract and retain employees.
• Government Policies: Fiscal and monetary policies implemented by the government, including those related to taxation and public sector wage adjustments, can directly influence wage growth.
• Productivity: Improvements in productivity, often driven by technological advancements and training, can lead to increased wages as businesses generate more revenue per employee.
• Labor Market Dynamics: The interplay between the supply of labor in various sectors and the demand for specific skills influences the rate at which wages grow, with high-skill industries often experiencing faster wage growth.
• External Factors: Global economic trends, trade agreements, and foreign investment levels also impact wage growth, as they affect overall economic performance and labor demand.

While Jordan's wage growth in certain years might paint an optimistic picture, it is essential to balance this against the cost of living increases and inflation rates to understand the real income progression for workers. The wage growth must outpace inflation for there to be a genuine improvement in living standards. Furthermore, disparities in wage growth across different demographics and regions within the country underline the uneven nature of economic benefits.

Jordan's government and private sector continue to implement strategies aimed at boosting economic growth and productivity, which are expected to contribute positively to wage growth over time. However, these efforts must be sustained and coupled with educational reforms, skill development programs, and investment in technology to ensure that wage growth keeps pace with the evolving demands of the global economy.

7. Compensation Costs (per hours worked)

The compensation cost per hour worked is a crucial metric for understanding labor costs in any economy. In Jordan, these costs encompass not only the wages or salaries that employees receive but also include social security contributions, taxes, and any other legally mandated benefits or bonuses that employers must provide.

These additional compensation elements can significantly impact the overall cost of labor for employers and thus influence business decisions regarding hiring, expansion, and investment. The following are key components of compensation cost per hour worked in Jordan:

• Wages/Salaries: This is the basic hourly wage or salary that an employee earns for the work performed during a specific period.
• Social Security Contributions: Employers in Jordan are required to contribute to the Social Security Corporation on behalf of their employees at a rate determined by law, which covers pensions, disability, and other social benefits.
• Annual Bonuses and Holiday Pay: Depending on the company's policy and the employment contract, employees may be entitled to annual bonuses, holiday pay, or end-of-service benefits, which are averaged into the hourly compensation cost.
• Allowances: This may include transportation, housing, or meal allowances that are part of the compensation package offered to employees.
• Health Insurance: Many employers provide health insurance coverage, the costs of which are factored into the total hourly compensation.
• Overtime Pay: Employees working beyond the standard work hours are usually eligible for overtime pay, which is higher than the regular hourly rate.
• Training and Development: Investment in employee training and skill development can also be considered a part of compensation costs, although these are generally amortized over the duration of the employees' tenure.

The total compensation cost per hour worked can therefore exceed the apparent wage cost substantially when all these factors are included. While direct wage comparisons are more straightforward, understanding the full picture of compensation costs requires a detailed analysis of all associated expenses from the employer's perspective.

In Jordan, the labor law and various regulations dictate many of the above-mentioned elements, ensuring that workers receive fair compensation in addition to their wages. Employers need to take these costs into account when planning their labor budgets and when making competitive offers to potential employees.

Comparing compensation costs internationally can be challenging due to differences in labor laws, living costs, and economic conditions. However, multinational corporations and businesses considering outsourcing or establishing operations in Jordan must closely evaluate these costs to make informed decisions.

It is also noteworthy that while compensation costs are a significant factor for employers, they are equally important for employees as these benefits and protections form an integral part of their overall remuneration and job satisfaction.

8. Comparison with Other Countries

The average salary in Jordan can be compared to both regional and global standards. These comparisons give insight into Jordan's economic standing and its competitiveness in the global job market. Below is a discussion on how salaries in Jordan stack up against those in other countries:

Regional Comparison:

When comparing Jordan to its neighboring countries in the Middle East, it is evident that there is a wide range of average incomes due to the varying levels of economic development and wealth within the region. For instance, Gulf Cooperation Council (GCC) countries, such as Saudi Arabia, the United Arab Emirates, and Qatar, often have higher average salaries due to their strong economies, bolstered by oil and gas revenues. However, these countries also have higher living costs, especially in major cities such as Dubai or Doha.

Countries like Egypt and Lebanon, on the other hand, might have average salaries that are closer to those found in Jordan, but they also struggle with economic instability and inflation, which can erode real income levels.

Global Comparison:

Globally, developed Western countries typically offer higher average salaries when compared to Jordan. The United States, countries in Western Europe, and Australia, for example, boast some of the highest incomes worldwide, reflecting their strong economies and high living standards. Nevertheless, it's crucial to consider the cost of living, which is significantly higher in such countries; thereby, a direct salary comparison does not always equate to the same standard of living.

To illustrate the differences more clearly, here is a comparison table featuring average monthly salaries in Jordan and selected other countries:

Country	Average Monthly Salary (USD)	Cost of Living Index*
Jordan	850 - 1130	53.04
United Arab Emirates	3000 - 5000	61.98
United States	3000 - 6000	71.05
Germany	2800 - 5000	65.26
Egypt	150 - 400	29.54
Australia	3300 - 5200	72.08
Lebanon	200 - 600	58.92

*Cost of Living Index is a theoretical price index that measures the relative cost of living over time or regions. It is an aggregate figure that includes various goods and services such as transportation, groceries, rent, and dining out. The index is relative to New York City, which means that for New York City, the index should be 100(%).

In conclusion, while average salaries in Jordan may not compete with those in wealthier nations, it's important to factor in the cost of living and economic context when making such comparisons. The average income reflects the country's current stage of economic development and the government's ongoing efforts to improve wage conditions and create job opportunities. As Jordan continues on its path of economic growth and seeks to enhance the business environment, we may see a shift in how wages compare on a regional and global scale.