Jordan End of Service Gratuity Calculator
Determine lawful terminal indemnity and final settlement entitlements in Jordan. Computes Article 32 statutory gratuity (one month comprehensive wage per year of service), resignation tenure scaling, Article 23 notice pay (one month), and Articles 61–63 accrued annual leave encashment.
Employment & Separation Details
Microsecond EngineStatutory Final Settlement Statement
Article 32 Compliant| Statutory Item | Legal Basis | Calculation Rule | Amount (JOD) |
|---|---|---|---|
| End of Service Gratuity | Article 32, Law 8/1996 | 5.50 yrs × 1 month × JOD 1,200 (100%) | JOD 6,600.00 |
| Notice Period Compensation | Article 23, Law 8/1996 | 1 month comprehensive wage | JOD 1,200.00 |
| Accrued Leave Encashment | Articles 61–63, Law 8/1996 | 14 days × (JOD 1,200 ÷ 30) | JOD 560.00 |
| Total Legally Mandated Final Settlement | JOD 8,360.00 | ||
Statutory Benchmark Matrix: Service Tenure vs. Jordan Gratuity Entitlements
The table below models statutory end-of-service gratuity and total terminal dues across typical service tenures under Jordanian Labor Law No. 8 of 1996, assuming an average monthly comprehensive wage of JOD 1,000, with 1 month notice pay and 14 days accrued leave:
| Service Tenure | Termination / Dismissal (100%) | Resignation (<3 Yrs: 0%) | Resignation (3–5 Yrs: 33.3%) | Resignation (5–10 Yrs: 66.7%) | Resignation (10+ Yrs: 100%) |
|---|---|---|---|---|---|
| 2 Years | JOD 2,000.00 (2.0 Mo) | JOD 0.00 (Forfeited) | N/A | N/A | N/A |
| 4 Years | JOD 4,000.00 (4.0 Mo) | N/A | JOD 1,333.33 (33.3%) | N/A | N/A |
| 7 Years | JOD 7,000.00 (7.0 Mo) | N/A | N/A | JOD 4,666.67 (66.7%) | N/A |
| 10 Years | JOD 10,000.00 (10.0 Mo) | N/A | N/A | N/A | JOD 10,000.00 (100%) |
| 15 Years | JOD 15,000.00 (15.0 Mo) | N/A | N/A | N/A | JOD 15,000.00 (100%) |
| 20 Years | JOD 20,000.00 (20.0 Mo) | N/A | N/A | N/A | JOD 20,000.00 (100%) |
Statutory Framework: Jordanian Labor Law No. 8 of 1996
End-of-service gratuity in Jordan operates under clear legislative principles established by Article 32:
Article 32 Gratuity Accrual Rate
Article 32 provides that workers who are not covered by Social Security, or who completed service before their firm was enrolled in Social Security, are entitled to a severance gratuity calculated at one full month's wage for each year of actual service, with pro-rata compensation for fractional periods.
Comprehensive Wage Legal Standard
Under established precedents of the Jordanian Court of Cassation, the end-of-service gratuity is calculated on the Comprehensive Wage (الأجر الشامل), which encompasses the basic contractual salary plus all regular, continuous monthly allowances (such as transportation, housing, and family allowances).
Article 23 Notice Pay & Leave Encashment
If employment is terminated unilaterally by the employer without one month's advance written notice, Article 23 requires payment of one month's wage as notice compensation. Furthermore, Articles 61–63 mandate cash encashment of all unused annual leave days at the rate of `Wage ÷ 30` per day.
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Frequently Asked Questions (Jordan End of Service Gratuity)
Who is entitled to end-of-service gratuity under Article 32 of Jordanian Labor Law?
Under Article 32 of Labor Law No. 8 of 1996, end-of-service gratuity is legally due to: (1) Workers who are not covered by the Social Security Law; (2) Periods of service completed prior to the employer's enrollment in Social Security; and (3) Employees whose contracts or company internal bylaws provide an end-of-service gratuity in addition to Social Security pension rights.
What is the statutory gratuity formula under Article 32 in Jordan?
The statutory gratuity equals one full month's comprehensive wage for each completed year of actual service, with pro-rata entitlement for fractions of a year, computed on the basis of the employee's last received gross wage.
What percentage of gratuity is paid if the employee resigns in Jordan?
Under established Jordanian labor jurisprudence and standard corporate internal regulations, if an employee resigns: less than 3 years of service yields 0%; 3 to less than 5 years yields one-third (33.33%); 5 to less than 10 years yields two-thirds (66.67%); and 10 or more years of service entitles the worker to 100% full gratuity.
How is unused annual leave compensated upon employment termination in Jordan?
Under Articles 61–63 of Labor Law No. 8/1996, the employee is entitled to full cash compensation for all accumulated unused annual leave days, calculated as the monthly comprehensive wage divided by 30 days multiplied by the number of unused leave days.
Is notice pay included in the final settlement if dismissal is immediate?
Under Article 23, if an employer terminates an indefinite employment contract without providing one month's written advance notice, the employer must pay the worker notice compensation equivalent to one full month of comprehensive wage in lieu of notice.