Pensions, old age, disability and survivors
Overview of pensions system
Jordan has a public Pay-As-You-Go system, as well as voluntary occupational and voluntary personal pension arrangements. The public PAYG pension system consists of three separate tiers (two of them being managed by the Ministry of Finance)
1) Civil Pension System: this system is regulated by the Ministry of Finance. It covers government employees recruited prior to 1995. Since then, new employees are redirected to the Social Security Corporation.
2) Military Pension System: this system is regulated by the Ministry of Finance and cover members of the armed forces. Participants in this system receive benefits upon a service period of more than 16 years or upon reaching the age of 60. Those recruited into the army after 2002 are covered by the Social Security Corporation.
3) Social Security Corporation: the Social Security Corporation manages the national pension scheme for private sector workers, employees who joined the civil services after 1995 and military personal recruited after 2002. It is a compulsory scheme for employers previously with at least 5 employees but now extended to all firms independently of size. The contribution rate is set at 14.5% of the employee’s salary, of which 5.5% is paid by the employee (14,5% for self-employed or any worker who join the scheme on a voluntary basis). Employee contributions to the Social Security Corporation are exempted from tax; employer contributions are income tax-deductible.
The social assistance does not seem to prioritize elderly as a target group. There is at present no universal or non contributory social assistance old age pension for the non-insured population as part of the pension system.
Statistics and indicators
| The ILO Social Security Inquiry | More facts and figures |
| Access to original data by scheme Coverage indicators (national) | Statistcs from the Social security corporation
Source: SSC Annual Report 2009 |
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