Jordan: Amendments to Social Security Act deprive young people of old-age insurance

The Joint Parliamentary Committee on Labor and Legal Affairs has approved an amendment to the Social Security Act which allows the Social Security Institution to exclude young people under the age of 28 who work for companies employing less than 25 people from their old-age insurance for five years.

This amendment created controversy among experts who felt that this new measure ignores the unemployment rate among young Jordanians (48%), among the highest in the world.

In this context, labor law expert, Hamada Abu Najma, said in a publication on his official page Facebook that those who brought the amendment do not know that one of the reasons why young people refuse to work in certain sectors is the absence of insurance and fair wages. The expert said that this amendment clearly contradicts the instructions to be used by the State in its management of the youth file; he added that youth are a category that will not work for five years without pension guarantees.

Hamada Abu Najma explained that if the purpose of this amendment is to encourage and support new businesses, it would have been more effective to exempt these same companies from insurance contributions, taxes or various other expenses.