Ammon News - The first meeting of the tripartite committee for the minimum wage, convened by the Ministry of Labor, is scheduled for Sunday to seek agreement among employers' representatives, workers' representatives, and the government in increasing the minimum wage.
Khaled Al-Bakkar, the Minister of Labor, emphasized in a previous statement that the choice to increase the minimum wage is made collaboratively with workers' and employers' representatives as well as the government. He highlighted that the ministry's actions will focus on maintaining a fair balance between employers and employees while safeguarding workers' rights.
The minister emphasized the ministry's dedication to increasing the minimum wage in 2025, stating that all three stakeholders - employers, workers, and the government - must agree on the decision for it to be implemented.
Since 2010, the nominal minimum wage in Jordan has risen from 150 dinars per month (143.0 dinars in real terms) to 260 dinars (253.1 dinars in real terms) by 2021, resulting in a 26% increase in 2012, an 11% increase in 2017, and a 17% increase in 2021 in terms of real value.
Khaled Al-Fanatseh, the leader of the General Federation of Jordanian Trade Unions, stated that deciding to increase the minimum wage falls under the jurisdiction of the Tripartite Committee for Labor Affairs, composed of workers, employers, and the government, who make unanimous decisions. If this is not achievable, the Minister of Labor presents the decision to the Council of Ministers.
He mentioned that in accordance with Article 52 of the Labor Law, any increase in the minimum wage is closely tied to the cost of living, as stated in the article which says, "The tripartite committee will set the minimum wage based on cost of living indicators from official authorities."
Al-Fanatseh stated that increasing Jordan's minimum wage to a minimum of 300 dinars at the start of the upcoming year is inevitable and a necessary step, following a 5-year period of it staying stagnant at 260 dinars.
The Jordanian Strategy Forum has put in effort to estimate the potential rise in the minimum wage by 2025, ranging from 288 dinars (factoring in inflation) to safeguard against erosion, to 300 dinars monthly (considering inflation and growth in productivity) to boost productivity and incentivize workers. That means a growth rate that falls within the range of 10.8% to 15.4%.