Economical and Social Effects on Retirement Salaries of Participants and Beneficiaries From the Jordanian Social Security System

Mustafa M. Soumadi


The study aims to identify the reality of retirement salaries for the 1,200,000 insured employees at the social security network in Jordan, out of a total workforce of about 5,926,580, which means that 20% of the total number of employees is included in the social security system. The study aimed to make a comparison between the retirement salaries level and the cost of living level of the Jordanian family, which amounted to (854) JDs per month based on the spending and wages average at the Jordanian General Statistics Department, while the retirement salaries rate paid to the retirees of government and private sectors amounted to (494) JDs per month for the public sector and also (494) JDs per month for the family of private sector.

The study viewed the retirement salaries rates according to the various economical activities for the years (2015/2016) and the results showed that average retirement salaries for those eligible social security participants (493) JDs per month, while the average beneficiaries who currently receive retirements salaries is about (576) JDs per month and their number about (193,763) thousand citizens. The study was also shocking as it turns out that retirement salary for the beneficiaries who receive retirement salaries now between (178) and (576) JDs, which means that many of the low beneficiaries segments and after (20) years of continuous service their retirement salaries don't reach the government-set poverty line of (339) JDs per month, and all salaries of participants who haven't reached the retirement age and the beneficiaries, the retirement salaries of 100% of them will not reach the sufficiency line or the average cost of living for the Jordanian family of (854) JDs per month. Study recommends the establishment of a higher wage council made up of economists, jurists, financial people, and representatives from the public and private sector, and the army, military, and security institutions to establish a fair wage system.

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Research in World Economy
ISSN 1923-3981(Print)ISSN 1923-399X(Online)


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