No more deductions from government employees earning over 2,000 JD

Economy

Published: 2018-03-27 15:45

Last Updated: 2018-03-27 15:46


Employees making more than JD 2K a month were required to give away 10% of their salary in 2017. (Bitcoin Magazine)
Employees making more than JD 2K a month were required to give away 10% of their salary in 2017. (Bitcoin Magazine)
Roya News Source

Jordanians working in the public sector and earning more than JD 2,000 a month will no longer have 10% of their salary deducted by the government.

Omar Malhas, the Minister of Finance, said on Tuesday that the decision to take 10% of those employees’ salaries, including the Prime Minister and his MPs, was confined to the year 2017.

The Minister said that the decision was scrapped at the beginning of 2018 for every governmental organization, ministry and state-owned organization.

Where did the deducted money go? Malhas said that it went to the Public Treasury in the Ministry of Finance, without specifying how much money the government made from the "initiative" that year. 

Meanwhile, for those working in the private sector, if you’re not familiar with the way income tax works in Jordan, here’s your 101:

- Single men and women earning JD 12,000 or less per year are exempt from paying income tax.

- Single men and women earning more than JD 12,000 a year are taxed 7% for every JD 100 extra JDs made per month. For example, if you’re earning JD 13,200 a year (that’s JD 1,100 per month), you will be taxed 7% for every JD 100 you make per month.

- A married couple earning a joint salary of JD 24,000 or less per year is exempt from paying tax.

- A married couple earning more than JD 24,000 per year will be taxed 7% for every JD 100 extra JDs made per month.

- If a married couple provides documents proving that their children attend a private school or that they are paying a mortgage, the first JD 3,000 they make per year on top of their joint salary of JD 24,000 will be exempt from income tax.