Jordan's Parliament to Review Social Security Law Amendment

Jordan's Parliament is scheduled to review an amended Social Security Law for 2026, signaling potential reforms to the kingdom's social safety net.

The proposed legislation, recently submitted by the government, aims to bolster and broaden the existing social protection framework by incorporating new beneficiary categories, according to parliamentary sources. It also seeks to strike a balance between the rights of insured individuals and enhance the long-term sustainability of the insurance system.

A key aspect of the amendment involves reinforcing the independence of the Social Security Corporation and refining its decision-making mechanisms. The proposed changes envision a restructuring of the institution, drawing inspiration from the Central Bank model. This includes the appointment of a governor by the Cabinet, subject to royal approval, with clearly defined roles and responsibilities outlined within the legal framework. This signifies a departure from the current structure where a government minister chairs the corporation's board.

The bill also addresses retirement conditions, prioritizing mandatory retirement as the standard and early retirement as the exception. This adjustment is geared towards ensuring the sustainability of the insurance system and safeguarding the rights of insured individuals.

Prime Minister Jaafar Hassan has stated that the government has revised the draft Social Security Law to ensure that it does not negatively impact any individuals eligible for early, mandatory, or voluntary retirement within the next four years.

The implementation of the law is slated to commence gradually in 2030, extending over the subsequent decade until 2040 for mandatory retirement for both men and women. This means that the law will not be fully implemented until 14 years after its enactment, assuming it is approved this year for mandatory retirement.

Regarding early and voluntary retirement, the Prime Minister clarified that implementation would also begin gradually after 2030, extending until 2047 for men and 2041 for women. This implies full implementation after 21 years for men and 15 years for women concerning early and voluntary retirement.

Hassan also revealed that the amendments maintain the five-year or 60-contribution difference between women and men in early retirement, as is currently the case for mandatory retirement.

The Social Security Corporation has published the results of its eleventh actuarial study, conducted every three years as mandated by Article 18 of the Social Security Law, on its website.