Jordan Pay Equity Overview

Overview

Jordan's approach to pay equity is rooted in a commitment to fostering a fair and inclusive labor market, a principle increasingly reflected in its legislative framework. Historically, the Kingdom has grappled with significant gender disparities in the workplace, including a notable wage gap and low female labor force participation rates. However, recent legislative reforms, particularly amendments to the foundational Labour Law No. 8 of 1996, signify a progressive shift towards explicitly addressing and rectifying these inequalities. These amendments underscore a growing recognition of the economic and social imperative to ensure equal remuneration for work of equal value, aligning national laws with international labor standards and global best practices. The evolution of pay equity regulations in Jordan reflects a broader national strategy aimed at empowering women and enhancing their effective role in society building, while ensuring equity of opportunity and protection from all forms of discrimination. This commitment is further solidified by Jordan's ratification of key international conventions, demonstrating a proactive stance in integrating global human rights principles into its domestic legal system.

Despite these legislative advancements, Jordan continues to face challenges in achieving comprehensive pay equity. Official figures from various reports highlight a persistent gender pay gap. For instance, a 2018 Department of Statistics (DOS) report estimated the gender pay gap in the public sector at 12.9 percent and in the private sector at 7.7 percent. Other sources, such as a 2021 ILO report, indicated that the median wage for males in the private sector was 7 percent higher than for females, while in the public sector, females earned 13 percent more. The World Bank estimated in 2020 that the wage gap in the private sector between women and men working similar jobs with similar education and experience was approximately 17 percent. These discrepancies are further compounded by Jordan's notably low female labor force participation rate, which stood at less than 14 percent in 2023, one of the lowest globally for a country not in conflict. This low participation persists despite high female literacy and tertiary education rates, indicating that structural and legal impediments, alongside social norms, continue to hinder women's full economic integration. The economic impact of these disparities is substantial, limiting national productivity and hindering inclusive growth.

The ongoing efforts to address pay equity are part of Jordan's broader national development agenda, including the National Strategy for Women 2020-2025 and the Engendered Strategy for the Economic Modernization Vision 2033, which aim to double women's labor force participation over the next decade. These strategies acknowledge that achieving gender equality and decent work, including pay equity, is crucial for Jordan's long-term growth and stability. The legislative changes, coupled with strategic national initiatives, demonstrate a clear trajectory towards strengthening the legal framework for pay equity and creating a more equitable working environment. However, the effective implementation and rigorous enforcement of these laws, alongside addressing underlying socio-cultural barriers, remain critical for translating legal provisions into tangible improvements in women's economic standing. The government's commitment is evident in its continuous review and amendment of labor laws to better reflect international best practices and address domestic challenges.

Regulatory Approach

Jordan's regulatory approach to pay equity has transitioned towards a mandatory framework, primarily through the explicit prohibitions introduced in the Labour Law No. 8 of 1996 and its subsequent amendments. The most significant development came with Law No. 14 of 2019, which introduced the concept of 'discrimination in wages' based on gender, and further solidified by Law No. 10 of 2023, which explicitly prohibits any gender-based discrimination between workers that would prejudice equal opportunities within the workplace. This legal shift moved beyond general anti-discrimination principles to specifically target wage disparities, making it a legal obligation for employers to ensure equal pay for work of equal value. The law defines "wage discrimination" as inequality between workers in remuneration for work that has an equal value due to discrimination based on sex. This clear definition provides a robust legal basis for challenging and penalizing discriminatory pay practices, establishing a clear legal duty for employers.

The compliance philosophy in Jordan emphasizes both preventative measures and reactive enforcement. Employers are expected to adhere to the principle of equal pay for equal value work, and the law provides mechanisms for employees to seek redress if discrimination occurs. There are no specific reporting thresholds for pay gap reporting or mandatory equal pay audits currently stipulated in the publicly available amendments, suggesting that the focus is primarily on individual complaints and inspections rather than proactive, systemic reporting by employers. This approach places the onus on individual workers to identify and report discrimination, which can be challenging in environments lacking pay transparency. However, the existence of a designated Wages Authority, which can resolve disputes related to wage discrimination, indicates a structured approach to addressing non-compliance. The enforcement style is punitive, with specific fines imposed on employers found guilty of wage discrimination, coupled with an obligation to rectify the pay difference. This aims to deter discriminatory practices and ensure that affected employees receive their rightful remuneration, thereby providing a tangible incentive for compliance.

The regulatory framework is continuously evolving, with ongoing discussions and proposed amendments to the Labour Law. These future developments indicate a commitment to refining the legal environment to better support pay equity and women's participation in the workforce. For instance, proposed reforms include increasing maternity leave and prohibiting the dismissal of pregnant women, which indirectly support pay equity by ensuring women's continuous employment and career progression. While the current framework establishes a clear legal prohibition against gender-based wage discrimination, the absence of explicit provisions for pay transparency, regular pay gap reporting, or mandatory equal pay audits suggests that the regulatory approach could further evolve to incorporate more proactive and systemic measures to identify and address pay disparities across organizations. Such measures would shift the burden from individual employees to employers, fostering a more transparent and equitable labor market.

Key Pay Equity Legislation

• Jordan Labour Law No. 8 of 1996 (Act, In Force (Amended), 1996)
  The foundational piece of legislation governing employment relationships in Jordan, the Labour Law No. 8 of 1996, has been instrumental in shaping the country's labor landscape. While the original law laid the groundwork for various labor rights, its significant amendments, particularly Law No. 14 of 2019 and Law No. 10 of 2023, have explicitly introduced and strengthened provisions related to pay equity. These amendments define and prohibit "discrimination in wages" based on gender, ensuring that workers receive equal remuneration for work of equal value. The law covers a broad range of employment aspects, including contracts, working hours, leave, and dispute resolution, and its amendments reflect Jordan's commitment to aligning with international labor standards and promoting gender equality in the workplace. The 2019 amendment specifically introduced the concept of wage discrimination, while the 2023 amendment broadened the scope to prohibit any gender-based discrimination affecting equal opportunities, reinforcing the principle of fair treatment and remuneration.

Covered Employers

The provisions of the Jordan Labour Law No. 8 of 1996, including its amendments pertaining to pay equity, generally apply to all employers and employees as defined by Article 2 of the Law. This broad scope ensures that the prohibition against gender-based wage discrimination extends across a significant portion of the Jordanian economy. The law defines an "employer" as any natural or legal person employing, in any capacity, one or more persons against remuneration, and a "worker" as any person, male or female, performing work against remuneration for an employer and under his direction, including minors, trainees, and persons on a trial period. This comprehensive definition means that both small and large enterprises, across various sectors, are subject to the pay equity regulations, without specific size thresholds for the application of the equal pay principle itself. The universality of this application is crucial for establishing a baseline of fairness across the labor market, ensuring that the principle of equal pay is not limited to larger entities but applies broadly.

However, the Labour Law does specify certain categories of workers and employers that are excluded from its general application. Notably, public employees and those working for municipalities are typically not subject to the provisions of the Labour Law, as their employment is often governed by separate civil service regulations. This distinction means that while the principle of equal pay may still be pursued through other legal avenues or constitutional provisions, the specific enforcement mechanisms and penalties outlined in the Labour Law for wage discrimination may not directly apply to these sectors. Furthermore, certain categories of workers, such as domestic workers, have historically faced different regulatory frameworks, although there have been efforts to extend protections to them. The general intent of the law is to provide a wide safety net against discriminatory practices in remuneration for the majority of the private sector workforce, aiming for comprehensive coverage where possible.

There are no explicit sector-specific rules or exemptions from the core principle of equal pay for equal value work within the Labour Law for the covered sectors. The prohibition against gender-based wage discrimination is a general obligation for all employers falling under the law's purview. While the law does not detail phase-in schedules for compliance with pay equity provisions, the amendments that introduced these specific prohibitions came into force upon their publication in the Official Gazette, making compliance immediately mandatory for all covered entities. The ongoing legislative reforms and discussions, such as those related to flexible work regulations and increased maternity leave, indicate a continuous effort to adapt the legal framework to modern employment realities and further strengthen protections for all workers, thereby indirectly reinforcing the broader objectives of pay equity and non-discrimination. These reforms aim to close any remaining gaps in coverage and ensure that all workers benefit from equitable treatment.

Employee Rights

Under Jordan's pay equity regulations, employees are explicitly granted the right to equal remuneration for work of equal value, free from gender-based discrimination. This fundamental right is enshrined in the amendments to the Labour Law No. 8 of 1996, particularly Law No. 14 of 2019 and Law No. 10 of 2023, which define "wage discrimination" as inequality in payment of wages between employees based on gender for work that has an equal value. This means that an employee, regardless of gender, performing work that is deemed to be of equal value to that performed by a colleague of the opposite sex, is entitled to receive the same wage. This right is a cornerstone of the country's commitment to gender equality in the workplace and provides a clear legal basis for challenging discriminatory pay practices. It empowers employees to demand fair treatment and equal compensation for their contributions, irrespective of their gender.

To exercise these rights, employees have several avenues for recourse. A significant development is the establishment of the Wages Authority, which the Minister of Labour may designate to consider cases related to wages, including discrimination in payment. This authority serves as a specialized body for resolving wage disputes, offering employees a dedicated channel to address grievances without necessarily resorting to lengthy court proceedings. Furthermore, the amended law allows employees to represent themselves before the Magistrates Courts should the dispute relate to wages, providing an additional judicial pathway for seeking justice. The law also stipulates that any term of a contract or agreement whereby a worker waives any of the rights vested by virtue of the Labour Law shall be null and void, ensuring that employees cannot be coerced into relinquishing their pay equity rights. This provision is critical in protecting vulnerable workers from exploitative contractual clauses.

While the law establishes the right to equal pay, specific procedures for employees to request information about their pay or that of their colleagues for comparison purposes are not explicitly detailed in the available official sources. However, the general framework for labor inspection and dispute resolution implies that relevant information would be accessible during the investigation of a complaint, as employers are required to provide records to inspectors. Employees can report any labor rights violations to the Ministry of Labour, which has an online service for this purpose, known as the Faz3a portal. The protection against discrimination also extends beyond wages, with Law No. 10 of 2023 explicitly prohibiting any gender-based discrimination that prejudices equal opportunities within the workplace. This broader protection reinforces the environment for employees to assert their rights without fear of retaliation, although specific anti-retaliation provisions directly linked to pay equity complaints are not explicitly detailed, the general labor protections would likely apply.

Governance & Enforcement Bodies

The primary governmental body responsible for the governance and enforcement of pay equity regulations in Jordan is the Ministry of Labour. Established in 1976, the Ministry plays a pivotal role in organizing the labor sector, updating labor legislation, supervising labor and workers' affairs, and regulating the Jordanian labor market. Its functions encompass a wide range of responsibilities, including ensuring compliance with labor laws, which now explicitly include provisions against gender-based wage discrimination. The Ministry is tasked with maintaining the rights of both production parties (employers and workers) and contributing to the development of workforces. It also plays a crucial role in consolidating regional and international cooperation and partnership in labor affairs, which includes adherence to international labor standards, making it the central authority for all labor-related matters, including pay equity.

Within the framework of the Labour Law, the Minister of Labour has the authority to designate a specialized body known as the Wages Authority. This authority, composed of experts and specialists in labor affairs, is specifically empowered to consider and resolve cases related to wages, including instances of discrimination in payment. The establishment of the Wages Authority signifies a dedicated mechanism for addressing pay equity disputes, providing a specialized forum for employees to seek redress. While the exact coordination mechanisms between the Wages Authority and other departments within the Ministry of Labour are not extensively detailed, it operates under the Ministry's overarching mandate to enforce labor laws. Additionally, labor inspectors, appointed by the Ministry, are crucial in monitoring compliance with labor legislation, including wage-related provisions, by conducting on-site visits and investigations. These inspectors act as the frontline enforcers, ensuring that workplaces adhere to the legal requirements.

Beyond the administrative bodies, the judicial system also plays a role in enforcing pay equity. The amended Labour Law allows employees to represent themselves before the Magistrates Courts for wage-related disputes, providing a judicial avenue for resolving conflicts that may not be settled through the Wages Authority or Ministry mediation. This multi-tiered approach, involving administrative oversight by the Ministry of Labour, specialized dispute resolution through the Wages Authority, and judicial recourse, aims to provide comprehensive enforcement of pay equity regulations. For direct contact, the Ministry of Labour's official website (www.mol.gov.jo) and contact details (e.g., email: [email protected]) serve as primary points of engagement for inquiries and complaints, offering accessible channels for workers to report violations and seek assistance.

Monitoring & Compliance

Monitoring and compliance with pay equity regulations in Jordan primarily fall under the purview of the Ministry of Labour, which is mandated to supervise labor and workers' affairs and ensure adherence to the Labour Law. The Ministry employs labor inspectors whose qualifications, duties, and powers are governed by specific regulations. These inspectors are crucial in conducting on-site inspections of establishments to verify compliance with various labor provisions, including those related to wages and non-discrimination. Employers are obligated to cooperate with inspectors, providing statements on the number of workers, their work details, and remuneration, and maintaining required records. This proactive inspection mechanism serves as a deterrent against non-compliance and a means of identifying potential violations, ensuring that employers are aware of their obligations and are subject to scrutiny.

The complaint process for pay equity violations is facilitated through several channels. Employees who believe they have experienced wage discrimination can file complaints with the Ministry of Labour. The Ministry has also launched online services for workers to report labor rights violations, which can include issues related to unequal pay, through its Faz3a portal. Upon receiving a complaint, the Ministry or the designated Wages Authority will investigate the matter. The Wages Authority is specifically tasked with considering cases related to wages, including late payment, unjustified deductions, and discrimination in payment for work of equal value. This specialized body aims to provide an efficient and expert-led resolution process for wage disputes, offering a more streamlined alternative to traditional court proceedings and ensuring that complaints are handled by knowledgeable professionals.

While the Labour Law establishes the principle of equal pay for equal value work, explicit requirements for employers to conduct regular equal pay audits or to collect and report pay data are not detailed in the available official sources. The focus appears to be more on responding to individual complaints and general inspections rather than mandating proactive, systemic self-assessment by employers. However, the definition of "discrimination in wages" as inequality for "work that has an equal value" implicitly necessitates a form of job evaluation to determine comparability. The evaluation criteria for assessing equal value would typically involve objective factors such as skills, effort, responsibility, and working conditions, although specific guidelines for such evaluations are not explicitly outlined in the provided information. The effectiveness of monitoring and compliance relies heavily on the vigilance of employees in reporting violations and the capacity of the Ministry and Wages Authority to conduct thorough investigations and enforce remedies, highlighting the importance of both individual awareness and institutional capacity.

Penalties & Enforcement

Jordanian law imposes clear penalties for employers found to be in violation of pay equity regulations, specifically for gender-based wage discrimination. The Labour Law No. 8 of 1996, as amended by Law No. 14 of 2019 and Law No. 10 of 2023, stipulates that an employer who discriminates in the payment of wages between employees because of gender for work of equal value shall be punishable by a fine. This fine ranges from not less than 500 Jordanian Dinars (JOD) to not more than 1,000 JOD for each instance of discrimination. This financial penalty serves as a significant deterrent against discriminatory pay practices, underscoring the seriousness with which the legislature views such violations and providing a clear economic disincentive for non-compliance. The fines are substantial enough to encourage employers to review and adjust their pay structures to ensure equity.

Beyond the imposition of fines, the law also mandates a crucial remedy for the affected employee: the employer shall be ordered to pay the worker the difference in wages. This provision ensures that the victim of wage discrimination is compensated for the financial loss incurred due to the unequal pay, thereby restoring their rightful earnings. This compensatory aspect is vital for achieving true equity and making the affected individual whole. Furthermore, the law specifies that the penalty shall be doubled every time the offense is repeated, indicating a progressive enforcement mechanism designed to discourage habitual non-compliance. This escalating penalty structure aims to compel employers to rectify discriminatory practices permanently and to foster a culture of compliance with equal pay principles, demonstrating a commitment to long-term behavioral change rather than just one-off penalties.

The enforcement process involves investigations by the Ministry of Labour and the Wages Authority, which is empowered to resolve wage disputes, including those related to discrimination. If a dispute is not resolved at the administrative level, employees have the right to pursue their claims in the Magistrates Courts. The appeals process for decisions made by the Wages Authority or the courts would follow the standard judicial procedures within the Jordanian legal system, allowing parties to challenge rulings in higher courts, ensuring due process. The combination of financial penalties, mandatory wage difference payments, and the doubling of penalties for repeat offenses, alongside accessible dispute resolution and judicial avenues, forms a robust enforcement framework designed to uphold pay equity in Jordan and provide comprehensive redress for victims of discrimination.

International Alignment

Jordan demonstrates a strong commitment to international labor standards, particularly concerning equal remuneration and non-discrimination in employment, through its ratification of key International Labour Organization (ILO) Conventions. The country ratified ILO Convention No. 100 on Equal Remuneration in September 1966, which advocates for equal remuneration for men and women workers for work of equal value. Additionally, Jordan ratified ILO Convention No. 111 on Discrimination (Employment and Occupation) in July 1963, which calls for national policies to promote equality of opportunity and treatment in employment and occupation, with a view to eliminating any discrimination. These ratifications signify Jordan's formal pledge to incorporate these principles into its national legislation and practices, providing a strong international legal basis for its domestic pay equity laws and demonstrating its commitment to global human rights standards.

The amendments to Jordan's Labour Law, particularly the explicit prohibition of gender-based wage discrimination for work of equal value, directly reflect the principles enshrined in ILO Convention No. 100. By defining wage discrimination and establishing penalties, Jordan's legal framework aligns with the convention's objective of ensuring that men and women receive equal pay for performing jobs that are objectively assessed as having the same value. This alignment is a crucial step in translating international commitments into actionable domestic law. Furthermore, the broader prohibition of gender-based discrimination in employment, introduced by Law No. 10 of 2023, resonates with the comprehensive scope of ILO Convention No. 111, which aims to eliminate discrimination across all aspects of employment and occupation. This legislative harmony underscores Jordan's dedication to fulfilling its international obligations and promoting a fair and equitable labor market.

Despite these significant alignments, reports from organizations like the Jordanian Labor Watch indicate that Jordan has been included in lists of countries that do not fully comply with certain ILO conventions, specifically mentioning Convention No. 98 on the Right to Organize and Collective Bargaining. While this particular convention does not directly address pay equity, issues related to freedom of association and collective bargaining can indirectly impact workers' ability to advocate for fair wages and conditions. Nevertheless, in terms of direct pay equity legislation, Jordan's legal framework, particularly the recent amendments to the Labour Law, positions it favorably compared to many peers in the region, demonstrating a clear legislative intent to uphold the principles of equal pay for equal value work as mandated by international standards. The ongoing efforts to reform the labor law further indicate a continuous drive towards strengthening its alignment with global best practices and international human rights covenants, aiming for full compliance across all relevant conventions.

Future Developments

Jordan is actively pursuing further reforms to its labor legislation, with several significant amendments to the Labour Law No. 8 of 1996 currently under consideration or expected to come into force in the near future. These proposed changes aim to enhance worker protections, increase labor market flexibility, and, crucially, boost women's participation in the workforce, which indirectly supports pay equity objectives. Among the key proposed amendments, the Council of Ministers has approved draft changes that include increasing maternity leave from 70 days to 90 days, aligning it with public sector provisions. This extension is a vital step in supporting women's career continuity and reducing the potential for pay gaps related to maternity, by allowing mothers more time for recovery and childcare without jeopardizing their employment or career progression.

Beyond direct protections for women, other expected reforms include more flexible regulation of fixed-term employment contracts and new provisions on collective dismissals. The Flexible Work Regulation No. 44 of 2024, which came into force on August 31, 2024, is the first piece of legislation in Jordan regulating flexible work contracts. Such regulations can be instrumental in enabling women to balance work and family responsibilities, thereby facilitating their entry and retention in the labor market. There are also provisions calling for the Ministry of Labour to issue new regulations on the determination of arbitrary dismissal and on the rights of workers in such events. These broader reforms contribute to a more equitable and secure employment landscape, which is foundational for achieving comprehensive pay equity. The government's stated intention behind these measures is to increase the flexibility of the labor market and encourage women's participation in the labor force, aligning with national strategies like the Economic Modernization Vision 2033, which envisions a significant increase in female labor force participation.

The political outlook suggests a continued focus on labor market reforms, with a particular emphasis on gender equality and economic empowerment for women. The Lower House has been actively deliberating over draft amendments to the 2024 Labour Law, passing articles that ban the termination of employees during pregnancy and strengthening protections. While specific deadlines for all pending bills are subject to the legislative process, the momentum indicates that further enhancements to the legal framework are imminent. Employers should monitor these developments closely, as they will necessitate adjustments to human resources policies and practices to ensure compliance with the evolving regulatory landscape. The ongoing dialogue and legislative activity underscore Jordan's commitment to progressively strengthening its pay equity framework and addressing the structural barriers that contribute to gender disparities in the workforce, aiming for a more inclusive and productive economy.

Key Regulations

Title	Type	Status	Year
Jordan Labour Law 1996	Act	In Force (Amended)	1996

Sources and References

Source	Type
Ministry of Labour (Jordan)	official
International Labour Organization (ILO)	official
WIPO Lex: Law No. 8 of 1996 on Labor (as amended up to Law No. 14 of 2019), Jordan	official legal database
ILO NATLEX: Jordan Labour Law No. 8 of 1996	official legal database
UN Statistics Division: The gender-based differences in wages, the Jordanian case	official
Joint Submission to the Office of the High Commissioner on Human Rights Universal Periodic Review - Jordan 45th Session	official
Ministry of Labour (Jordan) - About the Ministry	official
Ministry of Labour (Jordan) - Services (Faz3a portal)	official