The Jordan Labor Watch has expressed its approval of the tripartite labor committee's decision to raise the minimum wage to 290 Jordanian Dinars starting from the beginning of next year. The Jordan Labor Watch views this as a step towards improving the living standards of workers and an investment in ensuring the long-term economic and social stability of the country.
In a statement issued by Jordan Labor Watch, which is affiliated with the Phenix Center for Economic Studies, it acknowledged that while the increase to 290 Dinars is significant, it does not meet expectations. The Jordan Labor Watch argues that a mere increase of 30 Dinars will leave many sectors unable to meet their families' basic needs, especially given the ongoing rise in inflation rates.
Jordan Labor Watch pointed out that with this new increase, the minimum wage will only constitute approximately 46% of the national average wage, which stands at 627 Dinars. This is below the International Labor Organization's recommendation that such a ratio should not be less than 55%.
Furthermore, it emphasized that this new minimum wage increase still falls short of covering workers' and their families' essential needs, particularly in light of Jordan's high dependency ratio, where each working individual supports at least three others. The Jordan Labor Watch stressed that raising the minimum wage to fair levels is crucial for improving living conditions for many families and reducing high poverty rates in Jordan.
Jordan Labor Watch also noted that the tripartite labor committee's decision to maintain the minimum wage until 2027 contradicts Article (52) of the Labor Law, which stipulates that the minimum wage should be reviewed periodically to align with inflation rates and living costs. They argued that this extended period could lead to unaccounted rises in inflation and living costs, eroding the value of the new minimum wage increase. The Jordan Labor Watch called for a commitment to raise the minimum wage whenever living costs increase, in accordance with Article (52) of the Labor Law.
Additionally, Jordan Labor Watch criticized the tripartite committee's decision to exclude workers in the clothing sector and non-Jordanian domestic workers from this minimum wage increase, deeming it a clear discrimination against them. This exclusion could create an unfair competitive environment between Jordanian and non-Jordanian laborers, exacerbating existing labor market imbalances.
The Jordan Labor Watch urged that this new increase should apply to all private sector workers covered by labor law, regardless of their sector or nationality. It highlighted that fair wage improvements foster a sense of justice and equity among citizens, reduce social class gaps, alleviate social disparities, and lead to more stable and resilient communities in times of crisis.
Moreover, raising the minimum wage to fair levels would stimulate economic growth by enhancing local consumption demand, which would positively impact small and medium-sized enterprises that rely on local markets for their sales.