Khaberni - Mohammed Khreis, the director of Research and Studies at the Social Security Corporation, said that the initiative to amend the Social Security Law was based on the results of the eleventh actuarial study, which showed future challenges threatening the sustainability of the insurance system, especially old age, disability, and death insurance, if gradual and thoughtful reforms are not implemented.
Khreis explained, on Wednesday evening, that conducting the actuarial study is a periodic legal requirement, noting that the study's results Khaberni indicated that the break-even point between insurance revenues and expenses would be in 2030, after which reliance on investment returns to cover expenses will start until 2038, before moving to the phase of using assets, a scenario the institution seeks to avoid due to its direct impact on the rights of future generations.
He stated that the main reason for the growing insurance expenses is demographic pressures, primarily the increase in the average life expectancy and the decline in fertility rates, leading to an increase in the number of retirees Khaberni compared to fewer subscribers. He added that the number of the insured is expected to more than double during the forecast period, while the number of beneficiaries will rise by about twelvefold, which continuously reduces the ratio of subscribers to retirees.
Khreis also noted that the social security system in Jordan is characterized by generous benefits compared to the size of the contributions, explaining that the contributions deducted for old age, disability, and death insurance amount to about 17 percent, while the true actuarial cost to finance this insurance in the long term reaches about 44.8 percent, necessitating the implementation of reforms to ensure the system’s financial sustainability.
He added that the institution paid approximately 2.1 billion dinars in retirement salaries during 2025, expecting this number to rise to 2.9 billion dinars in the next few years, reaching about 4.5 billion dinars by 2035, which constitutes 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 preserving the value of retirement salaries and not compromising 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 clarified that the institution bases its studies on the best global practices, being a member of the International Social Security Association, pointing out that many countries, including Arab and European ones, have implemented similar reforms that included the gradual raising of the retirement age.
Khreis confirmed that what the Council of Ministers has approved so far is limited to endorsing the justifications for the draft amended law, and not on the draft law itself, noting that drafting the draft will later be subject to extensive Khaberni dialogue within the government and the National Assembly, with listening to various opinions to achieve a balance between the financial sustainability of the system and the protection of insurance benefits for subscribers and retirees.
