Minimum wage increase expected today in Jordan

The decision by the Tripartite Labor Committee on raising the minimum wage in Jordan is expected to be announced today, Monday.

Citizens hope the committee will introduce a wage increase that addresses rising inflation and improves the livelihoods of employees, reflecting the economic realities that have impacted commodity prices in recent years.

Last week, Labor Minister Khalid Al-Bakar convened the Tripartite Labor Committee to meet this afternoon to finalize the decision on raising the minimum wage and to address other labor-related issues.

The committee, under Jordan’s Labor Law, holds the exclusive authority to set minimum wage rates. Its members include representatives from employers, the government, and workers.

What will the new minimum wage be?

The minimum wage has remained stagnant since 2021 at JD 260. Calls for an increase now factor in accumulated inflation rates since then.

The government is required to implement the committee's February 24, 2020, decision, which outlines a phased approach to wage increases, including:

• Raising the minimum wage to JD 260 starting January 1, 2021.
• Adjusting the wage annually to reflect inflation rates.

Economic experts estimate cumulative inflation in Jordan from 2022 to 2024 at approximately 8.2 percent, suggesting the minimum wage could rise to JD 281 by January 1, 2025—a JD 21 increase.

Economic and Social Impact

If the minimum wage increases to JD 281, around 240,000 social security subscribers stand to benefit. This adjustment could also boost Social Security Corporation revenues by JD 14 million annually.