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Home International Customs Jordan

Jordan raises minimum wage, hikes taxes on tobacco, telecom services

byCT Report
09/02/2017
in Jordan
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AMMAN: The Council of Ministers took a set of economic measures that included hiking fees and taxes as well as raising the minimum wage and cutting on expenses.

According to details, the decisions included raising taxes on cigarettes, soft drinks and telecom services, as well as increasing fees to issue passports from JD20 to JD50.

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In addition, they included raising the minimum wage limit from JD180 to JD220, according to a government statement. The measures came as the government seeks to secure JD450 million, as part of a plan to narrow the budget deficit.

According to the statement, the decision “aimed at enhancing job stability and safety for workers, increase demand on commodities and services, and encourage youth to take jobs.” The council stressed the importance of inspection campaigns on facilities and companies to ensure that the decision is enforced.

The decision applies to Jordanian workers who are defined in the Labor Law 8/1996 and its amendments, regardless of payment methods, as the minimum wage will be divided by 30 days and the pay will be paid accordingly, whether on a daily or weekly basis or any other method.

The Cabinet also decided to increase the allocations of the National Aid Fund (NAF) to 10 per cent at an annual cost of JD10 million, increasing the monthly aid to 9,000 households that receive it by JD20 or from JD180 to JD200.

The decision also allows sons and daughters of beneficiaries to work for three months to one year and in small self-owned enterprises for two years, and to only consider 15 per cent of their pay as part of their families’ incomes.

In the same context, the Cabinet decided to write off previous small loans extended to underprivileged beneficiaries. The total number of borrowers stands at 2000 households, each having borrowed an average of JD800.

Earlier this month, the Cabinet decided to deduct 10 per cent of any sum above JD2,000 in monthly salaries of civil servants, and set a cap of JD3,500 on public sector salaries.

The government approved the mandating reasons for a by-law amending the by-law of customs duties on imported commodities for 2017, adding 5 per cent to the duties on imported commodities, provided that the total value is no less than JD100 and no more than JD10,000.

 

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