How many annual leave days are mandated under Jordanian Labor Law?

Under Article 61 of Labor Law No. 8 of 1996, an employee is entitled to 14 days of paid annual leave per year during the first five years of service. Once the employee completes five consecutive years with the same employer, the annual entitlement increases to 21 calendar days per year.

Do official public holidays and weekly rest days count against annual leave in Jordan?

No. Article 61 explicitly specifies that official national holidays, religious feasts, and weekly rest days (e.g., Fridays) are not counted as part of the annual leave if they occur within the leave duration.

How is unused annual leave encashed upon contract termination in Jordan?

Under Article 64, if the employment contract ends before the worker has exhausted their leave, they are entitled to a cash payout for all unused leave days calculated using their last comprehensive monthly wage divided by 30: Payout = (Monthly Wage / 30) × Unused Days.

Can an employee carry forward unused leave to subsequent years?

Under Article 62, the employee and employer may mutually agree in writing to postpone the annual leave to the following year. However, statutory leave entitlements generally carry forward for up to one subsequent year, and cannot be unilaterally forfeited.

What deductions apply to the final settlement voucher in Jordan?

The final settlement includes employee Social Security Corporation (SSC) contributions (7.5%) deducted only on the prorated active work days of the final month, along with any verified outstanding company loan balances, salary advances, or unreturned corporate property.

Jordan Labor Law No. 8 of 1996 (Articles 61–64)

Jordan Annual Leave & Final Settlement Calculator

Accurately audit statutory paid annual leave accruals and itemize terminal clearance settlements in Jordan. Models statutory leave brackets (14 days for <5 years service; 21 days for ≥5 years), terminal cash encashment (`Wage ÷ 30`), final active work days, 13th month/bonus prorations, and 7.5% SSC deductions.

Compensation & Settlement Inputs

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Preload Service Profiles:

Statutory Settlement Clearance Statement

Net Clearance Payout (صافي مستحقات المخالصة)

JOD 0.00

Annual Entitlement: 14 Days/Year (Service < 5 Years)

Daily Wage Rate JOD 0.00 Monthly Wage ÷ 30 Days

Leave Encashment JOD 0.00 0 Days @ Rate

Final Month Salary JOD 0.00 0 Active Days

Total Deductions - JOD 0.00 SSC + Advances

Voucher Line Item	Statutory Formula / Legal Basis	Net Value
Accrued Unused Leave Payout	0 Days × (Salary ÷ 30) [Art. 64]	+ JOD 0.00
Final Month Prorated Salary	0 Active Days × (Salary ÷ 30)	+ JOD 0.00
Bonus / 13th Month Accrual	Contractual Incentive Allocation	+ JOD 0.00
Gross Clearance Entitlements	Total Pre-Deduction Settlement	JOD 0.00
SSC Employee Contribution (7.5%)	7.5% on Final Active Salary (Law 1/2014)	- JOD 0.00
Loan / Advance Recovery	Outstanding Employee Obligations	- JOD 0.00
Net Payable Settlement (المبلغ الصافي)	Final Release & Clearance Amount	JOD 0.00

Statutory Benchmark: Jordan Annual Leave Framework (Labor Law No. 8/1996)

Legal Dimension	Article 61 Tier 1 (< 5 Years)	Article 61 Tier 2 (≥ 5 Years)	Statutory Encashment (Article 64)
Annual Entitlement	14 Calendar Days / Year	21 Calendar Days / Year	100% Cash Equivalent for Unused Days
Daily Wage Divisor	Monthly Wage ÷ 30	Monthly Wage ÷ 30	Last Drawn Comprehensive Wage ÷ 30
Holidays & Weekends	Excluded (Not counted against leave)	Excluded (Not counted against leave)	Full compensation for leave days only
Carryover Legality	Postpone up to 1 year with consent	Postpone up to 1 year with consent	Payable upon contract termination

Frequently Asked Questions: Jordan Annual Leave & Terminal Settlement

How is the daily wage calculated for annual leave encashment in Jordan? +

Under Jordanian Labor Law No. 8 of 1996 and judicial precedents established by the Court of Cassation, the statutory daily wage for monthly salaried workers is derived by dividing the last drawn comprehensive monthly wage by 30 days:

Daily Wage = Last Comprehensive Monthly Wage ÷ 30

The comprehensive wage includes the basic salary plus any continuous, fixed allowances (e.g., housing, transportation, technical allowances) that form an integral part of the regular employment remuneration.

When does an employee's annual leave entitlement increase from 14 to 21 days? +

According to Article 61 of the Jordanian Labor Law, an employee is entitled to 14 days of paid annual leave for each year of service. As soon as the employee completes five consecutive years of service with the same employer, the statutory entitlement automatically increases to 21 days per year starting from their sixth year of employment.

Can an employer force a worker to forfeit unutilized annual leave? +

No. Under Article 62 and Article 64, annual leave is a protected statutory right. While an employer may schedule leave in accordance with operational work requirements, any unutilized leave accumulated prior to the termination of the employment contract must be settled in full via cash compensation. Employers cannot declare statutory leave forfeit without lawful compensation.

How are public holidays and Friday weekends handled during annual leave? +

Article 61 expressly provides that official state holidays, religious celebrations, and regular weekly rest days (e.g., Friday) that occur during an employee's approved annual leave do not count against the worker's statutory leave quota. The leave is extended by the exact number of official holiday days that intersect with the leave period.

Is the final settlement subject to Social Security Corporation (SSC) deductions? +

Under Social Security Law No. 1 of 2014, the employee's 7.5% SSC contribution applies only to active wages earned for actual working days in the final month. Statutory leave cash encashment and severance end-of-service gratuities are terminal compensation payments and are exempt from regular monthly social security deductions.