Jordanië

The Jordan Payroll localization offers a comprehensive solution for managing payroll in compliance with Jordanian labor laws. It supports income tax calculations using progressive tax brackets, social security contributions from both employees and employers and basic salary calculations, including allowances such as housing and transportation.

Apps & modules

Install the following modules to get all the features of the Jordan Payroll localization:

Naam	Technische naam	Dependencies	Omschrijving
Jordan - Payroll	l10n_jo_hr_payroll	hr_payroll hr_payroll_holidays	Includes all salary rules, leave logic, and compensation rules compliant with Jordan Labor Law.
Jordan - Payroll with Accounting	l10n_jo_hr_payroll_account	hr_payroll_account l10n_jo l10n_jo_hr_payroll	Links payroll and accounting by creating journal entries to record payroll in the company’s books.

Before configuring the Jordan localization, refer to the general payroll documentation, which includes the basic information for all localizations, as well as all universal settings and fields.

Zie ook

Jordan fiscal localization documentation

General configurations

First, the company must be configured. Navigate to Settings app ‣ Users & Companies ‣ Companies. From the list, select the desired company, and configure the following fields:

• Company Name: Enter the business name in this field.

• Address: Complete the full address, including the City, Zip Code, and Country fields.

  Notitie

  Jordan does not use the State field, this remains blank. The Zip Code refers to the Jordanian Postal Code.

• Tax ID: Enter the company’s tax identification number.

• Company ID : Enter the business’s registry number.

• Currency: By default, JOD is selected. If not, select JOD from the drop-down menu.

Werknemers

Every employee being paid must have their employee profiles configured for the Jordan payroll localization. Additional fields are present after configuring the database for Jordan.

To update an employee form, open the Employees app and click on the desired employee record. On the employee form, configure the required fields in the related tabs.

Work tab

Enter the Work Address for the employee in the Location section of the Work tab.

Personal tab

Ensure the employee has a minimum of one trusted bank account listed in the Bank Accounts field in the Private Contact section.

These accounts are used to pay the employee. Payroll cannot be processed for employees without a trusted bank account. If no trusted bank account is set, a warning appears on the Payroll dashboard and an error occurs when attempting to run payroll.

If the employee is not a resident of Jordan, tick the Non-resident box. This indicates the employee is not eligible for personal exemptions.

Under the Family section, ensure the Has Dependants box is ticked if the employee has any dependants, such as a spouse, children, or parents. This ensures they receive an additional exemption on their taxable salary.

By default, the Is Eligible for EOS checkbox is ticked, in the Personal Information section, indicating the employee is eligible for end of service benefits. If the employee is not eligible, ensure the box is unchecked.

Additionally, if the employee is blind, tick the Is Blind checkbox. This ensures the employee’s entire salary is tax-exempt.

Payroll tab

Contract overview section

This section holds information that drives salary calculations. Ensure the following fields are configured:

• Contract: Ensure the contract dates are populated. The contract start date populates the first field, and if the contract has a set end date, that is populated in the second field.

• Wage Type: Select how the employee is paid.

  • Select Fixed Wage for salaried employees who receive the same amount each pay period.

  • Select Hourly Wage for employees paid based on hours worked.

  Tip

  Set a default Wage Type in the salary Structure Type to configure employees in bulk. If needed, the default can be overridden on individual employee records if exceptions are needed.

• Wage: Enter the monthly wage in this field, in JOD.

• Employee Type: Select what kind of employee the contract is for, such as Employee or Freelance.

• Contract Type: Determines how the employee is paid and classified, such as Permanent, Temporary, Seasonal.

• Pay Category: Select Jordan: Employee for this field. This defines when the employee is paid, their default working schedule, and the work entry type it applies to.

Schedule section

• Work Entry Source: Defines how work entries are generated for payroll during the specified pay period. The options are:

  • Working Schedule: Based on the employee’s assigned working schedule (e.g., 40 hours per week).

  • Attendances: Based on approved checked-in hours in the Attendances app.

  • Planning: Based on scheduled shifts in the Planning app.

• Extra Hours: Tick the checkbox to allow the Attendances app to add any extra work entries logged by the employee.

• Working Hours: Using the drop-down menu, select Jordan Working Schedule, which consists of a Sunday - Thursday, 40-hour work week.

Allowances section

The following sections of benefits are considered common ones offered by Jordanian employers. This information needs to be populated with the information selected by the employee.

Notitie

The benefits listed in this section are considered the ones most commonly offered by companies. If other employee benefits exist that require regular paycheck deductions, they can be added as inputs.

Enter the monthly allowance amount for Housing, Transportation, and Other allowances.

If the employee is tax exempt, enter the annual amount that is not subject to taxes in the Tax Exemption field.

If the employee’s salary is based on commission, tick the Is Commission based checkbox.

Annual leave provision section

Every year, employees receive days off. Enter the number of days in the Number of Leave days field. The default value is 14.

Social Insurance

Social insurance rules calculate the contribution amounts that are to be paid by the employer and employee to the Social Security Corporation. This is only available for Jordanian employees.

The employer contributes 14.25% of the employee’s salary to the Social Security Corporation, while the employee contributes 7.5% of their salary, which is deducted from their payslip.

For both employer and employee contributions, the base amount on which they are calculated is bound by a cap that gets updated every year.

Verlof

The following leave types are available to employees working in Jordan:

• Annual leave: Employee’s are eligible for 21 days of annual leave, and if the employee requires more days, they have to be requested from HR managers accordingly.

Belangrijk

Since the annual leave is fully paid, it is not connected to a salary rule, but it will appear on the worked days on the payslip form and on the PDF printout.

• Sick leave: Employee’s working in Jordan are entitled to 14 days of paid sick leave per year, with the possibility of an additional 14 days if hospitalized. No deductions are applied to the employee in those cases.

• Other leave types: These leave types are fully paid and do not affect the final payslip, but are tracked for reporting purposes:

  • Maternity leave

  • Paternity Leave

  • Pilgrimage Leave

  • Study leave

Income Tax

In Jordan, employees are subject to a progressive income tax system, where tax rates increase with higher annual income brackets.

Tax brackets

Depending on the annual income of the employee, the following rates apply:

Taxable Bracket	Range
5%	0-5,000
10%	5,001 - 10,000
15%	10,001 - 15,000
20%	15,001 - 20,000
25%	20,001 - 1,000,000
30%	More than 1,000,000

Notitie

Tax brackets are applied progressively. This means each portion of an employee’s income is taxed at its respective rate within each bracket, rather than their entire income being taxed at the rate of the highest bracket they fall into.

Exemptions

Several factors contribute to exempting part of an employee’s gross income, including:

• Jordanian residency: Residents are entitled to a yearly exemption of 12,000 JOD.

• Blindness: Individuals who are blind are fully exempt from income tax.

• Dependents: An additional 12,000 JOD exemption per year for employees with dependents.

Tijd overschreden

Employees are entitled to additional pay for overtime worked, depending on when the overtime hours are worked:

• On working days: Overtime is paid at 1.25 times the regular hourly wage.

• On rest days: Overtime is compensated at 1.5 times the regular hourly wage.

These percentages are recorded in the input parameters model.

Notitie

The number of overtime hours is registered as other inputs directly on payslips.

Provisions

Provisions are the amounts computed by the employer to account for the payments made to the employee for end-of-service benefits or annual leaves. It is computed on a monthly basis.

• End of service benefit provision: This is computed by dividing the monthly gross salary by 12

  \[\frac{\text{Basic} + \text{Allowances}}{12}\]

• Annual leave provision: This is computed by dividing the gross salary by 30 to get the daily salary, then multiplying that by the number of leave days, and dividing the result by 12.

  \[\left(\frac{\text{Basic} + \text{Allowances}}{30}\right) \times \left(\frac{\text{Number of Leave Days}}{12}\right)\]

End of Service

At the end of the employee’s service, if they are eligible for end-of-service benefits, they should receive the following two benefits:

• Unused leaves compensation: The Annual Leave Balance is shown on the employee’s record. It is based on the annual leave type defined in the Payroll app settings and is calculated as the total remaining allocations for that specific leave type assigned to the employee.

  The balance represents the total remaining leave allocated to the employee but does not reflect the portion of leave days the employee has earned up to the current month.

  When calculating the benefit value, the deserved leave balance is determined based on the portion of the year worked. The benefit value is then calculated by multiplying this deserved balance by the employee’s daily rate.

  Example

  If an employee is entitled to 14 leave days per year and has worked for 6 months, they deserve 7 leave days so far. If their daily rate is 50 JOD, the benefit value is: 7 days × 50 JOD = 350 JOD

  Belangrijk

  The flow mentioned above requires the allocation for the annual leave to be given fully upfront in the beginning of the year for that employee

• End of Service Benefit: The calculation begins by determining the total number of days the employee has worked at the company, starting from their joining date up to their last working day.

  The total service duration is calculated out of a 365-day year.

  The resulting period in years is then multiplied by the employee’s gross salary, which includes the basic salary and the allowances defined in the payroll tab on the employee record.

  \[(\text{Basic} + \text{Allowances}) \times \left(\frac{\text{Number of Days}}{365}\right)\]

Payroll configuration

Several sections within the Payroll app installs a Salary Structure, Structure Type, Rules, and Parameters specific to Jordan.

Salary structures & structure types

When the l10n_jo_hr_payroll module is installed, a new Salary Structure gets installed, Jordan: Monthly Pay. This structure includes one Structure Type, Jordan: Employee.

The Salary Structure contains all the individual salary rules that informs the Payroll app how to calculate employee payslips.

Salary rules

To view the salary rules that inform the salary structure what to do, navigate to Payroll app ‣ Configuration ‣ Structures and expand the Jordan: Employee entry to reveal the Jordan: Monthly Pay structure type. Click Jordan: Monthly Pay to view the detailed salary rules.

Each rule defines how pay is calculated, taking into account factors such as allowances, deductions, and taxes.

Rule parameters

Some calculations require specific rates associated with them, or wage caps. Rules Parameters are capable of listing a value, either a percentage or a fixed amount, to reference in the salary rules.

Example

The percentage rate for employee Social Security deductions is set in the Jordan Social Security Employee Deduction Rate % parameter.

Most rules pull information stored in the parameters module to get the rate of the rule (a percentage) and the cap (a dollar amount).

To view rule parameters, navigate to Payroll app ‣ Configuration ‣ Rule Parameters. Here, all rule parameters are displayed with their linked Salary Rules, which can be accessed. Review the parameters associated with a rule by looking for the Name of the rule, and make any edits as needed.

Belangrijk

Odoo adds updated rule parameters for the current calendar year. It is not recommended to edit rule parameters unless a national parameter has changed, and is different from the rule parameters created by Odoo. Check with all national regulations before making any changes to rule parameters.

Run Jordan payroll

Before running payroll, the payroll officer must validate employee work entries to confirm pay accuracy and catch errors. This includes checking that all time off is approved and any overtime is appropriate.

Work entries sync based on the employee’s contract configuration. Odoo pulls from the assigned working schedule, attendance records, planning schedule, and approved time off.

Any discrepencies or conflicts must be resolved, then the work entries can be regenerated.

Once everything is correct, draft payslips can be created individually or in batches, referred to in the Payroll app as Pay Runs.

Notitie

To cut down on the payroll officer’s time, it is typical to process payslips in batches, either by wage type (fixed salary vs hourly), pay schedule (weekly, bi-weekly, monthly, etc.), department (direct cost vs. administration), or any other grouping that best suits the company.

The process of running payroll includes different actions that need to be executed to ensure that the amount withheld from payroll taxes is correct, the amount that the employee receives as their net salary is correct, and the computation of hours worked reflects the employee’s actual hours worked, among others.

When running a payroll batch, check that the period, company, and employees included are correct before starting to analyze or validate the data.

Once the payslips are drafted, review them for accuracy. Check the Worked Days & Inputs tab, and ensure the listed worked time is correct, as well as any other inputs. Add any missing inputs, such as commissions, tips, reimbursements, that are missing.

Next, check the various totals (gross pay, employee taxes, benefits, employer taxes, net salaries), then click Compute Sheet to update the salary calculations, if there were edits. If everything is correct, click Validate.

Accounting check

The accounting process when running payroll has two components: creating journal entries, and registering payments.

Journal entry creation

After payslips are confirmed and validated, journal entries are posted either individually, or in a batch. The journal entry is created first as a draft.

Belangrijk

It must be decided if journal entries are done individually or in batches before running payroll.

Thirteen accounts from the Jordan CoA are included with the Jordan payroll localization:

• 500301 Basic Salary: Tracks the basic wages paid to employees.

• 500302 Housing Allowance: Captures housing allowance payments provided to employees.

• 500303 Transportation Allowance: Captures transportation allowance payments to employees.

• 500308 Staff Other Allowances: Covers employee allowances that do not fit any other available categories.

• 500310 Salary Deductions: Reflects deductions applied to employee salaries (e.g., advances, fines, statutory deductions).

• 500305 Leave Salary: Records salaries actually paid to employees while on paid leave.

• 201022 Social Security Payable: Holds both employee and employer amounts payable for social insurance contributions.

• 200502 Leave Days Provision: Accrues the cost of paid leave; the balance is reduced when leave is taken, and any leave not taken may be paid out when the employee leaves the company.

• 200503 End of Service Provision: Accumulates the end-of-service benefit monthly, so the amount can be paid (partially or fully) when the employee leaves, per service length and reason.

• 200101 Payables: Shows amounts payable to employees as salaries (unpaid salary liability at period end).

• 500202 End of Service Indemnity: Captures company expenses set aside to fund end-of-service benefits (expense-side counterpart to the provision).

• 200307 Employee Income Tax: Accumulates the income tax amount withheld from the employee’s salary.

• 500311 Social Security Expenses: Captures The total expense amount from payments to the social insurance authority.

Notitie

The CoA configuration is done by default when installing the Jordan payroll localization. The account codes and names can be edited to suit the company’s needs.

If everything seems correct on the journal entry draft, post the journal entries.

Register Payments

After the journal entries are validated, Odoo can generate payments.

Payments can be Grouped by Partner if there is a partner associated with a salary rule.

Close Payroll

If there are no errors, payroll is completed for the pay period.

Reports

No additional payroll reports unique to the Jordan payroll localization exist. All reports are the standard preconfigured reports included with the Payroll app.