Amman, February 17 (Petra) – The Cabinet on Tuesday approved the justifications for the 2026 draft amendments to the Social Security Law during a session chaired by Prime Minister Jafar Hassan.

The draft law aims to strengthen and expand Jordan's social protection system by broadening coverage to new groups of workers, ensuring a balance between the rights of insured individuals and enhancing the long-term sustainability of the insurance framework.

It seeks to reinforce the independence and governance of the Social Security Corporation by restructuring it along lines similar to the Central Bank model.

Under the proposed amendments, a Governor would be appointed by a Cabinet decision subject to Royal approval, with clearly defined powers and responsibilities set out in the law, and no government minister would chair the Corporation’s Board of Directors.

The amendments establish mandatory retirement as the general rule, with early retirement becoming an exception, in a move aimed at safeguarding the sustainability of the system and protecting contributors' rights.

Individuals who meet early retirement requirements before January 1, 2027, would retain the right to retire at any time, even after the amended law comes into force.

Similarly, those who reach the mandatory retirement age of 60 for men and 55 for women and complete 180 subscribtions before January 1, 2028, would remain eligible to retire under the current law.

Under the proposed changes, the number of subscribtions required for early retirement would increase to 360, regardless of the applicant's age.

Subscribtions required for mandatory old-age retirement would rise from 180 to 240, effective January 1, 2028.

A gradual increase in the retirement age would begin on January 1, 2028, with the age rising by six months annually until it reaches 65 for men and 60 for women.

The phased approach means that individuals four to five years away from retirement would effectively see an increase of only one year, while those expected to retire in 2037 under the current law would have their mandatory retirement age set at 65.

The draft law expands social protection coverage by mandating inclusion of new categories in line with evolving labour patterns and allowing voluntary enrollment.

Minimum pensions for low-income retirees would be raised to JD200, benefiting approximately 20,000 individuals.

Establishments would be covered under the law from the date they submit their application, regardless of when they commenced operations to ease financial burdens on businesses.

Establishments employing five workers or fewer that are not currently covered would be permitted to enroll in work injury and maternity insurance for one year at a reduced contribution rate of 2.75% instead of 21.75%.

Up to 1% of the annual surplus from work injury insurance subscribtions would be allocated to specialised occupational safety and health programmes.

The amendments extend the period for submitting a relapse request from one year to two years following medical stabilisation, allowing reassessment of disability and renewed medical care if necessary.

Insured private-sector employees would be permitted to request medical examinations while still employed to determine whether their condition qualifies as total or partial disability.

Penalties for establishments that fail to register employees or report inaccurate wages will increase to 100%, up from 30%, with a grace period granted until the end of 2026 to regularise their status without penalties.

For workers in hazardous professions, early retirement would be set at age 50 with 300 subscribtions, including at least 120 subscribtions in hazardous professions within the last 132 subscribtions.

Those who meet the requirements before January 1, 2027, would retain their retirement rights. Jordanians who do not qualify for retirement may apply for a lump-sum payment, while foreign workers would be eligible for lump-sum payments regardless of whether they meet retirement conditions.

Fines for knowingly providing false information to obtain benefits or evade obligations would range between JD3,000 and 5,000 under the proposed amendments.

//Petra// AK

17/02/2026 19:14:19