Managing payroll can be one of the most challenging tasks for businesses in Jordan. Between calculating progressive income taxes, handling social security contributions, and ensuring compliance with labor laws, there’s so much that can go wrong. But what if there was an easier way to do it all?
That’s where Odoo’s Jordan Payroll localization package comes in. It’s like having a smart assistant that takes care of all the heavy lifting—automating calculations, ensuring compliance, and even generating payslips for your employees.
Let me walk you through how this works and why it might just be the solution your business needs.
Automate Payroll Calculations (No More Guesswork!)
One of the best things about Odoo’s localization package is how it automates everything. Here’s what it does:
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Basic Salary Calculations: It handles salaries based on predefined structures and adds allowances like housing and transportation automatically.
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Social Security Contributions: Both employee (7.5%) and employer (14.25%) contributions are calculated for you—and yes, it even applies the cap of 3,000 JOD/month as per Jordanian law.
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Income Tax Deductions: Progressive tax brackets? No problem! The system figures out how much tax to deduct based on annual income and spreads it out monthly.
Imagine not having to worry about whether your calculations are accurate or compliant—it’s all done for you!
Social Security Contributions Made Easy
Social security deductions in Jordan can get complicated, especially with caps and percentages to consider. Odoo simplifies this by automating everything:
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For Employees: The system deducts 7.5% of their salary (up to 3,000 JOD).
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For Employers: It calculates 14.25%, also capped at 3,000 JOD.
Let’s say an employee earns 3,500 JOD/month—Odoo will only calculate contributions based on 3,000 JOD (not the full salary). This ensures compliance while saving you time and effort.
Social Security Contributions Made Easy
Social security deductions in Jordan can get complicated, especially with caps and percentages to consider. Odoo simplifies this by automating everything:
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For Employees: The system deducts 7.5% of their salary (up to 3,000 JOD).
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For Employers: It calculates 14.25%, also capped at 3,000 JOD.
Let’s say an employee earns 3,500 JOD/month—Odoo will only calculate contributions based on 3,000 JOD (not the full salary). This ensures compliance while saving you time and effort.
Understanding Jordan’s Tax Brackets (Without Breaking a Sweat)
Jordan uses a progressive tax system with six brackets ranging from 5% to 30%. Keeping track of these manually can be overwhelming, but Odoo does all the math for you!
Here’s how it works:
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5% Tax: Income up to 5,000 JOD is taxed at 5%.
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10% Tax: Income between 5,001–10,000 JOD is taxed at 10%.
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15% Tax: Income between 10,001–15,000 JOD is taxed at 15%.
…and so on up to 30%.
For example, if an employee earns 12,000 JOD annually:
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The first 5,000 JOD is taxed at 5%.
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The next 5,000 JOD is taxed at 10%.
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The remaining 2,000 JOD is taxed at 15%.
Odoo calculates these deductions automatically and splits them into monthly payments—no spreadsheets required!
Transparent Payslips Your Employees Will Love
One thing employees really appreciate is clarity when it comes to their paychecks. Odoo generates detailed payslips that show everything—gross salary, deductions (taxes and social security), and net pay. It’s all laid out in a way that’s easy to understand and builds trust with your team.
Customization for Your Business Needs
Every business has its quirks—maybe you offer performance bonuses or need to deduct loan repayments from salaries. With Odoo’s localization package, you can customize payroll workflows to match your policies while staying compliant with Jordanian laws. It’s flexible enough to adapt to whatever your business needs!
Why Businesses Love Odoo’s Localization Package
Here’s what makes this solution stand out:
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It Saves Time: No more manual calculations or double-checking spreadsheets—everything is automated!
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It Reduces Errors: Whether it’s taxes or social security contributions, the system ensures accuracy every time.
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It Builds Trust: Transparent payslips mean happier employees who know exactly what they’re being paid and why.
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It Adapts to You: Customization options let you tailor payroll processes without compromising compliance.
Real-Life Example
Let me share a quick story about a manufacturing company in Amman that switched to Odoo’s payroll system last year:
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They used to spend over a week every month processing payroll manually. Now it takes just two days!
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Tax filing errors dropped by over 95%, saving them from penalties.
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Employees started receiving detailed payslips on time—and morale improved significantly as a result!
Final Thoughts
If payroll feels like a headache every month, Odoo’s Jordan Payroll localization package might be exactly what you need to simplify things. It automates calculations, ensures compliance with local laws, and makes life easier for both HR teams and employees alike.
Ready to give it a try? Contact us today—we’d love to show you how this system can work for your business!
