Jordania
The Lower House of Jordan's Parliament has referred the proposed amendments to the 2026 Social Security Law to its Labour Committee for thorough examination. Speaker Mazen Qadi emphasized the importance of a comprehensive national dialogue to ensure the legislation aligns with citizens' rights and the fund's sustainability.
The proposed amendments have sparked significant debate among lawmakers. A notable point of contention is the government's proposal to increase contributions by 4%, which many MPs argue places an undue burden on contributors. They advocate for a more moderate increase, suggesting a cap of 2% annually to balance fund sustainability with contributors' financial capacities.
Additionally, there is a strong push to include bonuses, allowances, and other forms of compensation under the Social Security framework. This move aims to prevent coverage gaps and ensure equitable treatment for all contributors, including those participating voluntarily from abroad.
Lawmakers have underscored the necessity for transparent and accountable management of Social Security funds. They caution against high-risk investments and an overreliance on government bonds, advocating for adherence to international norms to safeguard the fund's integrity.
To guide future amendments and maintain the fund's health, MPs recommend conducting independent actuarial studies every three years. This approach is intended to ensure fairness, sustainability, and intergenerational equity within the Social Security system.
In the same session, the Lower House approved the 2025 Insurance Contracts Draft Law, comprising 101 articles. This legislation consolidates all civil code provisions related to insurance into a unified framework, covering various contract types, including land, marine, fire, life, motor, personal, property, medical, and reinsurance. The government anticipates that this law will bolster confidence in Jordan's insurance sector by ensuring equitable compensation, preventing abusive clauses, and supporting investment through a modern, transparent legal framework.
These legislative developments reflect Jordan's commitment to refining its legal and social security systems to better serve its citizens and adapt to evolving economic and social needs.
