Amman: Insurance and social security experts said on Wednesday that expanding social security coverage to more workers is a key pillar for reforming the system and enhancing its financial sustainability, as well as achieving fairness in the labor market.
According to Jordan News Agency, increasing the subscriber base, combating insurance evasion, and integrating workers in the informal economy have become urgent priorities to address future challenges the system may face and ensure its continuity.
Labor expert Hamada Abu Nijmeh, Director of Workers' House Organization, noted that a broader and more consistent subscriber base will lead to a more balanced and equitable pension system. Expanding the social security umbrella requires addressing insurance evasion, linking government databases to enhance compliance, simplifying subscription and payment procedures, and integrating workers in the informal economy and the self-employed into flexible and equitable mechanisms.
Abu Nijmeh also stressed the necessity of regulating termination procedures that prematurely push workers out of the labor market, as additional years of employment mean extra contributions and a delay in pension payments. He emphasized that true sustainability is achieved through expanding the coverage base, promoting fairness in the labor market, and improving system management.
Jamila Mahasneh, a Social Security Corporation consultant, highlighted that expanding coverage is a strategic objective of the corporation, aiming to increase revenues, improve its financial condition, and extend the social protection umbrella. She pointed out the importance of including Jordanians working abroad in old-age, disability, and death insurance, and optionally, unemployment insurance. Mahasneh also advocated for covering all workers without exception and including foreign laborers in all economic sectors.
Social Security Corporation spokesman Shaman Majali mentioned extensive inspection campaigns conducted since the beginning of the year to expand social security coverage and combat insurance evasion. A study revealed that 22.8 percent of workers in the formal sector are not covered by social security, along with a significant number in the informal sector.
Majali noted that the number of establishments covered by social security in January across the Kingdom reached 737, enrolling 1,347 insured individuals. He explained that the draft amendment to the Social Security Law includes incentives and stiff penalties for establishments evading inclusion of all their employees or applying with inaccurate wages.