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Principles and Objectives
 

The Jordanian Social Security Law was issued as a provisional law under No. 30 of the year 1978, as a result of the economic and social development in the Kingdom where it addressed the working groups uncovered with any other retirement rules or laws, such as civil or military retirement, the matter that required the existence of a socio-economic umbrella to protect those productive groups, and grant them subsequently more security, safety and stability, especially after the issuance of the Jordanian Labour Law at the beginning of the sixties of last century. With the growth of the labour market in Jordan and the development of its economic and social conditions. The circumstances were opportune at the end of the seventies for enacting a comprehensive legislation for the social security known as the Provisional Social Security Law No. (30) for 1978 that was put into effect at early eighties untill 31/05/2001 where several amendments were made to it, followed with the enactment of the Social Security Law No (19) of 2001 which composed of (77) articles classified into five chapters in addition to (4) annexed tables.

 

SSC OBJECTIVES
The Social Security Corporation was founded in order to enforce the rules of the Social Security Law through achieving the following objectives:

  1. To secure a respectable life to the citizen and his/her family members by allocating a pension for the insured person or his/her family members at the time of entitlement for such a pension whether owing to reaching the pensionary age, disability, sickness, or death.
  2. To enhance social security programs, and driving forward the course of the production of the private sector through indirect encouragement for the qualified labour force through social security programs' sponsorship, protection and material sureties which would lead to strengthening the relationship between the employee and the employer.
  3. To extend the social security umbrella in order to cover more and bigger groups and to secure a kind of psychological, material, and work stability for as many as possible.
  4. To participate in economic and social development plans through contribution in the strategic national economic projects as well as by creating new job opportunities.
  5. To raise the health standard in the society through implementation of the insurance against work injuries and occupational diseases taking into consideration that this trend imposes a diligent and major participation in the efforts exerted for work safety and health intended to reduce the number of the work injuries and their risks and negative reflections on the national income.
  6. To deepen the values of solidarity in the society and to participate in reducing poverty through securing a minimum income for the employee and his/her family.
  7. To achieve an equation that ensures justice in income distribution between the same generation and the successive generations.

 

Principles Of The Social Security System Are Based On :

  • Obligatory saving through surplus funds earned from "the accumulated revenues at the beginning of the system against inconsiderable liabilities".
  • Self-finance and non-dependence on financing the expenditures from the public taxes or any other source.
  • Adoption of pension's value according to the prevalent wages average.
  • Comprehensiveness through coverage of all society members under social protection systems.
  • Compulsion, since the contribution is compulsory for the targeted groups according to a legislation issued by the competent authorities of the state.
  • Flexibility by transformation from a compulsory insurance system.
  • Continuity through maintaining a deliberate balance between the revenues and the expenditures.
  • The international exchange since the social security systems became apart of the legal, social and economic legislations in the majority of the world nations where the standardization of the systems allows the exchange of the interests through bilateral non-bilateral programs between states.

The Corporation's Vision:

Comprehensive social security for All; seeking excellence in service, protection, and sustainability.

 

The Corporation's Mission:

Together to achieve social protection and economic development.

Values:

Respect, Professionalism,Integrity,Credibility,Team Spirit,Partnership.


Financial Sources Social Security Corporation:
The social security programmes are financed through the following main sources in accordance with the rules of the law:

  1. Contributions of those applicable to the rules of law whether paid by the insured employee or by the employer for his/her employees as well as the revenue of combining the previous service years in which they were not included by the rules of law.
  2. Interests, fines and additional amounts in cases of delay in contributions payment, not including the employees, delay in notifying at service termination, or any other cases stipulated in law.
  3. Investment revenues of social security accruals in different fields of investment.

 

Administrative Structure Of The Corporation:
Under the Social Security Law, the Social Security Corporation was founded, as a public financially and administratively independent organization that has a board of directors composed of fifteen members represent the various work parties as follows:

  • Minister of Labour President
  • Director-General of the Corporation Member and Vice-President
  • Secretary-General of Ministry of Labour Member
  • Secretary-General of Ministry of Health Member
  • Deputy-Governor of the Central Bank Member
  • Secretary-General of Ministry of Finance Member
  • Secretary-General of Ministry of Industry & Trade Member
  • Four member represent the employees/ selected by the General Federation of Labour Union
  • Four member represent the employers/ two of them selected by the Chamber of Industry and two by the Union of Chamber of Commerce

Responsibilities Of Corporation's Board Of Directors:
The Board of Directors carries out the management of the Corporation's affairs and supervises its activities. For these purposes, it assumes the following responsibilities:
  • To draw up the Corporation's general policy.
  • To approve the corporation's estimative annual budget.
  • To approve the final budget and the annual general account of revenues and expenditures.
  • To draw up the general plan for investment of Corporation's funds.
  • To draw up the necessary regulations' drafts and suggest legislations pertaining to social insurances.
  • To issue the executive, organizational, financial, administrative and technical regulations for the Corporation.
  • To make the necessary recommendations and submit them to the Cabinet of Ministers.
  • To assign the actuarial experts in order to examine and plan the Corporation's financial status.
  • To assign auditors or insurance experts to audit the Corporation's accounts.
  • To identify the organizational structure, job descriptions, duties and responsibilities.

The Corporation assumes it activities and responsibilities through its branches and offices spread out in all of the Kingdom's cities since it has (11) branches and (5) offices.

Insurances Stipulated In Law:

  1. Insurance against work injuries and occupational diseases.
  2. Insurance against old age, disability and death.
  3. Insurance against temporal disability due to sickness or maternity.
  4. Medical insurance for labourer and beneficiaries.
  5. Family grants.
  6. Insurance Against unemployment.

Currently applied insurances are:

  • Insurance against work injuries and occupational diseases.
  • Insurance against old age, disability and death.

The application of other stated insurances would take place progressively according to the economic and social developments, wages levels, and in accordance with decision issued by the Cabinet of Ministers upon the recommendations of the Corporation's Board of Directors.

Law Applicability :

  • Categories Included:
    1. All labourers subject to the rules of Labour Law regardless of their sex or nationaltites ranging between (16-60) years old for males and (16-55) for females.
    2. Public emplyees not subject to civil or military retirement law.
    3. Jordanians employed at foreign political, military or international missions in jordan.

  • Categories excluded in Law:
    1. Public employees subject to civil or military retirement law.
    2. Foreign employees at Foreign political, military or international missions in jordan.
    3. Labourer who have unorganized relation with their employers, provided that the organzied relation should be identified through regulations issued by the Board of Directors.

  • Categories where the implementation of Law is Suspended:
    1. Labourers employed in agricultural, sylvan and pastoral activities except for those who use mechanical machinaries or regular irrigation works, or those who work in such activities for the government and public institutions.
    2. Sailors and sea fishermen.
    3. House servants.

Insurance Compulsory:
At present, the insurance is obligatory on all establishments that hire five labourers or more, the law did not make a distinction between labourers due to nationallty, contract period or form, wage nature or value provided that the wage is not less than the adopted minimum limit for wages which is defined at (150) JD per month according to the issued regulations under the Jordanian Labour Law.

Advantages And Benefits:

  • Pensions:
    1. Old age pension (mandatory, early).
    2. Natural disability pension (total, partial).
    3. Natural death pension. 

  • Insurance services of Work injuries and occupational diseases:
    1. Medical care.
    2. Daily compensations.
    3. Transfer compensations.
    4. Occupational compensations.
    5. Total disability due to work injury pension.
    6. Permanent partial disability due to work injury pension.
    7. Death due to work injury pension.
  • Lump sum compensations (in case of infulfillment of pensions entitlement conditions).