AMMAN — The Cabinet on Tuesday approved the validating reasons for the 2026 amendments to the Social Security Law, during a session chaired by Prime Minister Jafar Hassan.

 

The proposed amendments aim to strengthen and expand the Kingdom’s social protection system by including new categories of workers, balancing the rights of insured individuals, and ensuring the long-term sustainability of the insurance system, the Jordan News Agency, Petra, reported.

 

A key component of the draft law focuses on enhancing the independence and governance of the Social Security Corporation (SSC), according to Petra.

 

Under the amendments, the SSC will be restructured to operate under a model similar to that of the Central Bank of Jordan. A governor will be appointed by the Cabinet subject to Royal Decree, with clearly defined powers and responsibilities, with a minister no longer chairing the corporation’s board of directors.

 

The draft law establishes mandatory retirement as the standard, with early retirement becoming an exception, with the measure intended to protect the sustainability of the insurance system and safeguard contributors’ rights, according to Petra.

 

Individuals who meet early retirement conditions before January 1, 2027, will retain the right to retire at any time, even after the amended law takes effect. Similarly, those who fulfill mandatory (old-age) retirement conditions, reaching 60 years for men and 55 for women, with 180 contributions completed before January 1, 2028, may retire under the current law.

 

Under the new amendments, the required number of contributions for early retirement will rise to 360 beginning January 1, 2028, regardless of the applicant’s age. Contributions required for mandatory retirement will increase from 180 to 240.

 

The retirement age will also be gradually increased by six months annually starting in 2028, reaching a maximum of 65 for men and 60 for women.

 

The draft law also expands mandatory social security coverage to include new forms of employment and updates provisions related to voluntary participation.

 

In a measure to support low-income retirees, pensions will be raised to ensure a minimum of JD200. Around 20,000 retirees are expected to benefit from the increase.

 

As per the new amendments, establishments will be covered under the law from the date they apply for registration, regardless of when operations began. Businesses employing five workers or fewer and not currently covered will be allowed to enroll in work injury and maternity insurance for one year, reducing contribution rates from 21.75 per cent to 2.75 per cent.

 

Up to one per cent of the annual surplus from work injury insurance contributions will be allocated to specialised occupational safety and health programmes, Petra said.

 

The amendments extend the deadline for injured workers to file relapse claims from one year to two years after medical stabilization and allow private-sector employees to appear before medical committees while still employed to assess total or partial disability.

 

Penalties for non-compliant establishments will increase from 30 per cent to 100 per cent, though businesses will have until the end of 2026 to correct their status without fines.

 

For workers in hazardous occupations, the early retirement age will be set at 50, with 300 contributions required, including at least 120 contributions in hazardous work during the last 132 contributions.

 

Those who meet these conditions before January 1, 2027, will retain their retirement rights, Petra said.

 

Jordanians who do not qualify for any type of pension may apply for a lump-sum compensation. Foreign workers may apply for lump-sum compensation regardless of whether they meet retirement eligibility requirements.

 

The draft law also introduces stricter penalties for individuals who intentionally provide false information to obtain benefits unlawfully or evade obligations, with fines ranging between JD3,000 and JD5,000.