Khaberni - The director of research and studies at the Social Security Corporation, Mohammad Khreis, said that the move to amend the social security law was based on the results of the eleventh actuarial study, which highlighted future challenges threatening the insurance system's sustainability, particularly regarding old-age, disability, and death insurance, in the absence of gradual and considered reforms.
Khreis explained in a statement to Al Mamlaka TV on Wednesday evening that conducting the actuarial study is a periodic legal requirement, pointing out that the study results indicated that the year 2030 would be the breakeven point between insurance revenue and expenses, with the dependency on investment returns to cover expenses to begin after that until 2038, before entering a phase of using assets, which is a scenario the institution aims to avoid due to its direct impact on the rights of future generations.
He pointed out that the main reason for the increase in insurance expenses is demographic pressures, especially the rise in average life expectancy and the decrease in fertility rates, leading to an increase in the number of retirees compared to fewer subscribers. He also noted that the number of insured individuals is expected to more than double during the forecast period, while the number of beneficiaries may increase by about twelve times, continuously reducing the ratio of subscribers to retirees.
Khreis noted that the social security system in Jordan is characterized by generous benefits compared to the size of the contributions, stating that the contributions deducted for old age, disability, and death insurance amount to about 17 percent, whereas the actual actuarial cost of funding this insurance in the long term reaches approximately 44.8 percent, necessitating the implementation of reforms to ensure the system's financial sustainability.
He added that the corporation paid approximately 2.1 billion dinars in retirement salaries during 2025, expecting this number to rise to 2.9 billion dinars in the coming few years, reaching about 4.5 billion dinars by 2035, posing an increasing burden on the insurance system.
Khreis emphasized that the approach focuses on delaying the receipt of insurance benefits, by raising the mandatory retirement age and restricting early retirement, while maintaining the value of retirement salaries and not affecting them, stressing that increasing contributions is not a preferred option due to its negative effects on the private sector, employment, and the economy in general.
Regarding international experiences, he explained that the institution relies on global best practices, being a member of the International Social Security Association, noting that many countries, including Arab and European ones, have implemented similar reforms that included gradually raising the retirement age.
Khreis confirmed that what the Cabinet has approved so far is limited to approving the justifications for the draft amended law, and not the draft law itself, pointing out that drafting the draft will later be subject to extensive dialogue within the government and the Assembly, with listening to various views to achieve a balance between the financial sustainability of the system and the protection of insurance benefits for subscribers and retirees.
The government approved on Tuesday the justifications for a draft amendment to the social security law for the year 2026, aimed at enhancing the social protection system and expanding it to include new categories, and achieving a balance between the rights of the insured, and enhancing the system's insurance sustainability.
The draft law aims to enhance the independence of the Public Social Security Institution and govern the decision-making mechanisms within it, as it will involve restructuring the institution and developing its model to mimic that of the Central Bank, whereby a governor will be appointed for the institution by a decision of the Cabinet, associated with the Royal Will, clearly defining his tasks and powers within the provisions of the law), meaning that no minister in the government will chair the institution's board of directors.
The draft law regulates retirement conditions, where mandatory retirement is the norm and early retirement is the exception; this is to ensure the sustainability of the insurance system and preserve the rights of the insured.
According to the amendments, anyone who meets the conditions for early retirement benefits before 1/1/2027 retains the right to retire whenever they wish, even after the provisions of the amended law come into effect, and anyone who meets the conditions for mandatory retirement (old age) by reaching the age of 60 for males and 55 for females, and has completed 180 subscriptions before 1/1/2028, is entitled to retire according to the provisions of the current law.
The number of subscriptions required to qualify for early retirement benefits according to the amendments will be 360 subscriptions, regardless of the age of the insured individual when applying, while the number of subscriptions required to qualify for mandatory retirement (old age) will be 240 subscriptions instead of 180, starting from 1/1/2028.
A gradual approach will also be adopted in raising the retirement age, by a rate of six months annually; to ultimately reach a maximum of 65 years for males and 60 years for females, with this graduation starting from 1/1/2028, thus the mandatory retirement age "old age" will practically not increase by more than a year for those who have 4 - 5 years left for their retirement, while those expected to retire in 2037 according to the current law (after 11 years) will have their mandatory retirement at age 65).
The draft law aims to expand the social protection umbrella by mandating the inclusion of new categories that align with new work patterns and forms, as well as with voluntary membership.
Low retirement salaries for former retirees will be increased so that their minimum threshold is not less than 200 dinars, exceeding the salary values they received during their employment, with about 20,000 citizens benefiting from this
increase among those with low retirement salaries.
The amendments mandate including establishments under the provisions of the law from the date they apply for inclusion, without considering the date they commenced operations, in order to alleviate the financial burdens on economic activities, and establishments not covered by the provisions of the law, employing five or fewer workers, will be allowed to include them for work injury insurance and maternity insurance for a year; this contributes to reducing the required subscriptions from them and from the workers to 2.75% instead of 21.75%.
Not more than 1% of the annual surplus of work injury insurance subscriptions will be allocated to establishing specialized programs in occupational safety and health.
The amendments allow the insured individual who is injured to submit a "relapse" request within a period of two years from the date their health condition stabilizes instead of one year, with the possibility of revising the disability percentage and their need for medical care again. They also allow the insured individual working in the private sector to be presented to the institution's medical committees while they are still on duty; to determine if the total or partial disability applies to their condition, after previously being examined only for total disability compliance.
According to the amendments, penalties will be intensified for those who dishonestly provide incorrect information to obtain benefits from the institution unlawfully for themselves or others, or to evade the institution's rights, with the penalty being at least 3,000 dinars and not exceeding 5,000 dinars.
