Phenix Center for Economic & Informatics Studies Phenix Center for Economic & Informatics Studies
The Phenix Center for Economic and Informatics Studies has affirmed that the proposed amendments to the Social Security Law for 2026 are incomplete and lack full integration. The Center is calling for the adoption of a comprehensive reform package that strikes a balanced approach among financial sustainability, social justice, and the expansion of insurance coverage. This would strengthen public confidence in the system and safeguard the rights of all beneficiaries.
In a position paper issued today, the Center explained that the social security system constitutes the backbone of Jordan’s social protection framework. Any legislative amendment must not be viewed merely as a financial or administrative procedure; rather, it should be treated as a rights-based issue and a political and social choice that is directly linked to social security and intergenerational equity.
The paper stressed that the core problem does not lie in the principle of raising the old-age retirement age or increasing the contribution requirements for early retirement per se. These measures are actuarially justified for preserving the system’s long-term sustainability when they are well-designed and properly linked to labour-market dynamics and the principles of social justice. However, the paper warned that any isolated amendment detached from a holistic vision risk placing the entire cost of reform on workers alone, without addressing the root structural imbalances in the labour market and wage policies.
The paper noted that certain proposed amendments concerning the governance and management of the Social Security Corporation represent a positive step toward enhancing the institution’s independence and operational efficiency. Their true effectiveness, however, will depend on how clearly these provisions are translated into precise legal language that restricts government interference in insurance and administrative decisions and entrenches professional, independent management of resources in line with international principles and standards.
Regarding the increase in the old-age retirement age, the paper affirmed that this direction is acceptable provided that fair legislative phasing is ensured. The change should apply only to new subscribers or to existing subscribers whose actual contributions do not exceed 120 months. This approach protects acquired rights and prevents “legislative shock.”
Raising the retirement age must also be accompanied by improvements in wage levels and the quality of the work environment, so that continuing to work until retirement becomes a viable economic choice rather than a burden that drives workers toward early retirement or into the informal economy to offset inadequate income.
On early retirement, the paper stated that increasing the required number of contributions may curb the quantitative expansion of early retirement cases. Yet this alone will not tackle the root causes of the phenomenon unless it is linked to employment and wage policies that genuinely support longer working lives. In addition, the law must impose clear restrictions on using early retirement as a tool for managing workforce surpluses in the public sector, while ensuring that any resulting financial costs from exceptional decisions are borne by the public treasury.
With respect to expanding insurance coverage, the paper emphasised that this is the cornerstone of any sustainable reform. This is especially critical given that approximately 54 % of workers remain outside the social security system, alongside the continued growth of the informal economy and the rise of modern work arrangements through digital platforms and self-employment.
The paper clarified that genuine reform must introduce flexible, government-supported contribution mechanisms that take into account fluctuating and precarious incomes. Such mechanisms should facilitate the integration of workers in the construction, agriculture, and freelance sectors into the system.
The paper also highlighted the importance of safeguarding the Corporation’s independence, reducing governmental intervention in insurance-related decisions, adopting professional investment standards for the Social Security Fund, and diversifying investment portfolios to mitigate risks stemming from excessive concentration in public debt instruments.
Finally, the paper considered that combating contribution evasion must form part of an integrated system that includes both digital and field-based inspection, links compliance to access to public and financial services, and activates a secure digital complaints platform for workers. These measures would protect workers’ rights and reinforce institutional accountability.
The paper concluded that real reform of the social security system must combine financial sustainability, intergenerational justice, broader inclusion, and strengthened governance. Only then can the continuity of the system be guaranteed and societal trust in Jordan’s social security framework be enhanced.
