Amman: The Jordan Strategy Forum (JSF) issued a report within its "Policy Brief" paper series titled "Some Expectations of the Impact of Salary Increases on the Jordanian Economy." The publication aims to outline the projected economic impact of the government's decision to increase the salaries of civil and military employees and retirees earning less than JD600 per month by JD30, starting in 2027.
According to Jordan News Agency, in its policy paper, the forum noted that the scheduled increase is a significant step toward improving living standards and boosting consumer spending. It explained that this demographic has a higher marginal propensity to consume, meaning they are more likely to spend additional income immediately on goods and services rather than saving it.
Consequently, the JSF indicated that any rise in household income for this segment will directly support consumer demand, particularly for essential goods, thereby stimulating overall economic growth.
The forum concluded that the pay bump serves as a critical booster for the purchasing power of low-income groups and acts as a lever to stimulate domestic demand, creating a positive ripple effect throughout national economic activity.