Social Security Reform in Jordan: What Direction Do We Want? - Jordan News

Jordan News

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From time to time, the Jordanian government, through various levels issues statements and leaks suggesting that there are challenges threatening the sustainability of the social security system, often hinting at the need to amend the governing law. These positions are frequently supported by recommendations from the International Monetary Fund and/or the World Bank. اضافة اعلان However, Jordan's recent experience has shown that what is offered under the label of 'reform' often involves reducing social entitlements rather than expanding protection or enhancing coverage. A few years ago, we witnessed a government attempt to amend more than one-third of the articles in the Social Security Law, most of which aimed at reducing protections, allowing the government to withhold part of its obligations toward military personnel, and conditioning those payments on economic growth rates exceeding 5%. Although public and parliamentary pressure prevented some of these amendments from being passed, the changes that were adopted effectively weakened the comprehensiveness and efficiency of the system. Today, with renewed calls for reforming the social security system, we must ask the fundamental question: What kind of reform do we want? Is the goal to strengthen the social protection system or simply to reduce costs at the expense of working people? The social security system is not merely a technical insurance scheme; it is one of the key pillars of social, political, and economic stability in any country. In Jordan, social security has been one of the state's most important achievements over the past decades, as it provides protection against old age, illness, disability, unemployment, and other social risks. It also contributes to poverty reduction and narrowing the social gap. Moreover, enhancing social security is no longer optional, it is a national necessity for achieving the goals outlined in the Economic Modernization Vision and the National Social Protection Strategy. Both documents identify social protection as a core pillar of economic reform. It is impossible to talk about a stable, attractive investment environment or increased productivity without a comprehensive, fair, and sustainable social security system. Likewise, any serious economic reform plan cannot succeed without a strong social safety net that protects vulnerable groups from the impacts of economic transformation and mitigates poverty and unemployment. Social security is not a burden on the economy, it is a prerequisite for its success and sustainability. If there is a genuine need to reform the Social Security Law, the starting point should be expanding coverage, not limiting it. Currently, nearly half of Jordan's labor force is not covered by social security, most of them working in the informal sector or as self-employed individuals. What we need are flexible and simplified contribution mechanisms that respond to the diversity of modern work arrangements, supported by incentivizing government policies, not exclusionary measures that increase vulnerability. The policy of expanding early retirement, especially forced retirement in the public sector, has become a burden on the system and threatens its sustainability. These policies must be halted. Exempting youth from some types of insurance coverage is a serious mistake that must be corrected, as it undermines the principle of equality and exposes future generations to weak retirement protection. Similarly, the decision to link the government's contributions for military personnel to economic growth rates must be reversed. Real reform must include all workers without discrimination and provide employment incentives that do not compromise their fundamental rights. Reforming the social security system in Jordan is not a routine technical measure, it is a political, economic, and social decision that affects the future of millions of Jordanians. Therefore, any amendments to this law must be based on principles of justice, inclusiveness, and sustainability, not on austerity approaches that threaten the structure of social protection and reduce the gains of working people.
We must understand that social security is a long-term investment in societal stability, not a cost that should be minimized.