Amman: Prime Minister Jafar Hassan announced that the government has amended the draft Social Security Law, ensuring that individuals eligible for early, mandatory, or optional retirement will not be affected over the next four years. Hassan made these remarks while chairing a Cabinet meeting on Tuesday, emphasizing the government's commitment to gradual implementation of the law starting in 2030.
According to Jordan News Agency, the law's full implementation of mandatory retirement provisions for both men and women is set to extend until 2040, allowing a 14-year period post-enactment for complete application, if the law is approved this year. Regarding early and voluntary retirement, Hassan outlined that gradual implementation would commence after 2030, continuing until 2047 for men and 2041 for women. This timeline indicates a 21-year full implementation period for men and 15 years for women.
Hassan assured that the amendments preserve the existing five-year difference or 60 payments between men and women for early and mandatory retirement. He reiterated the government's openness to proposals from Parliament and its committees to further enhance the draft law, underscoring the importance of safeguarding Jordanians' rights.
The Prime Minister highlighted the government's collaborative efforts with Parliament to achieve the law's primary objective, which includes protecting social security subscribers, securing investments and returns, and ensuring sustainable pension funding through subscription revenues. Additionally, the draft law aims to bolster the governance of the Social Security Corporation, aligning its restructuring with the independent decision-making model of the Central Bank of Jordan (CBJ).
Hassan mentioned that the amendments resulted from consultations with parliamentary blocs and incorporated feedback from experts via the Legislation and Opinion Bureau website, as well as comments from lawmakers. He clarified that amending the Social Security Law was not originally part of the government's programme, priorities, or Royal Mandate.
The Prime Minister cited an actuarial study conducted by experts from the International Labour Organisation (ILO), which identified challenges accumulated from policies and decisions made over the past decade. The study reiterated warnings from previous reports in 2010, 2014, 2019, and 2023 about risks associated with the current early retirement model, noting that no significant corrective measures had been taken.
Hassan emphasized that the government has no interest in the Social Security Law in terms of revenues or expenditures, and does not intend to infringe upon subscribers' rights. Instead, the government aims to address past decisions' consequences and the postponement of necessary reforms, preventing future challenges from being passed on to subsequent governments.
He stressed that the government is committed to fulfilling its responsibilities without delay or procrastination, taking precautionary steps to protect social security and avert potential crises. Concluding his remarks, the Prime Minister stated that the draft law reflects the recommendations of the actuarial study and the discussions held within the Economic and Social Council.