Jordan Daily – A position paper released by the Phenix Center for Economic and Informatics Studies stresses the urgent need for comprehensive and inclusive reforms to Jordan’s social security system.
The paper concludes that any reform must focus on expanding protections, achieving equitable coverage for all workers, and ensuring institutional sustainability—rather than reducing benefits or shifting the financial burden onto workers.
The paper outlines in a statement seven core policy priorities. Chief among them is the need to expand social security coverage to include all workers, particularly those in the informal economy and self-employed individuals. It proposes flexible, low-cost contribution mechanisms, supported by partial public funding, to encourage voluntary enrollment in the system.
Another major concern addressed in the paper is the widespread use of early retirement, especially in the public sector. Early retirees now account for approximately 63% of all pensioners, which significantly strains the pension fund and reduces average retirement benefits. The paper calls for restricting early retirement to voluntary cases and high-risk professions only, while discouraging forced retirement practices.
The paper also recommends transforming the current unemployment insurance into a comprehensive unemployment benefit system. It emphasizes the importance of including individuals undergoing long-term medical treatment, such as cancer patients, and ensuring that the fund is used strictly for its intended purpose—income replacement during job loss.
Recent amendments that excluded young workers under 30 from full coverage under old-age, disability, and death insurance are strongly criticized. The paper calls for repealing these changes and restoring equity in coverage. Instead of cutting protections, it urges the government to adopt alternative incentives for hiring young people that do not undermine their long-term security.
Additionally, the paper urges the activation of a national health insurance scheme in collaboration with the government, employers, and workers. This should align with international standards, particularly ILO Convention No. 102, and be funded through a dedicated health insurance fund.
Institutional governance and independence are also key themes in the paper. It warns that excessive government borrowing from social security funds undermines the system’s sustainability. To counter this, the paper recommends legislative safeguards, independent oversight of investments, and restructuring the Corporation’s board to ensure balanced representation and stronger accountability.
Finally, the paper highlights the need to enhance law enforcement and compliance. It proposes digital inspection systems, stricter penalties for non-compliant employers, and the integration of social security registration into licensing procedures.
In conclusion, the Phenix Center emphasizes that social protection is not a financial burden, but a cornerstone of sustainable development and social stability. “Reforming the social security system is not a luxury,” the paper asserts, “it is a national necessity and a long-term investment in Jordan’s future.”
