The PhenixCenter for Economic and Informatics Studies has affirmed that the proposedamendments to the Social Security Law for 2026 are incomplete and lack fullintegration. The Center is calling for the adoption of a comprehensive reformpackage that strikes a balanced approach among financial sustainability, socialjustice, and the expansion of insurance coverage. This would strengthen publicconfidence in the system and safeguard the rights of all beneficiaries.
In a positionpaper issued today, the Center explained that the social security system constitutesthe backbone of Jordan’s social protection framework. Any legislative amendmentmust 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 choicethat is directly linked to social security and intergenerational equity.
The paperstressed that the core problem does not lie in the principle of raising theold-age retirement age or increasing the contribution requirements for earlyretirement per se. These measures are actuarially justified for preserving thesystem’s long-term sustainability when they are well-designed and properlylinked to labour-market dynamics and the principles of social justice. However,the paper warned that any isolated amendment detached from a holistic visionrisk placing the entire cost of reform on workers alone, without addressing theroot structural imbalances in the labour market and wage policies.
The papernoted that certain proposed amendments concerning the governance and managementof the Social Security Corporation represent a positive step toward enhancingthe institution’s independence and operational efficiency. Their trueeffectiveness, however, will depend on how clearly these provisions aretranslated into precise legal language that restricts government interferencein insurance and administrative decisions and entrenches professional,independent management of resources in line with international principles andstandards.
Regardingthe increase in the old-age retirement age, the paper affirmed that thisdirection is acceptable provided that fair legislative phasing is ensured. Thechange should apply only to new subscribers or to existing subscribers whoseactual contributions do not exceed 120 months. This approach protects acquiredrights and prevents “legislative shock.”
Raising theretirement age must also be accompanied by improvements in wage levels and thequality of the work environment, so that continuing to work until retirementbecomes a viable economic choice rather than a burden that drives workerstoward early retirement or into the informal economy to offset inadequateincome.
On earlyretirement, the paper stated that increasing the required number ofcontributions may curb the quantitative expansion of early retirement cases.Yet this alone will not tackle the root causes of the phenomenon unless it islinked to employment and wage policies that genuinely support longer workinglives. In addition, the law must impose clear restrictions on using early retirementas a tool for managing workforce surpluses in the public sector, while ensuringthat any resulting financial costs from exceptional decisions are borne by thepublic treasury.
Withrespect to expanding insurance coverage, the paper emphasised that this isthe cornerstone of any sustainable reform. This is especially critical giventhat approximately 54 % of workers remain outside the social security system,alongside the continued growth of the informal economy and the rise of modernwork arrangements through digital platforms and self-employment.
The paperclarified that genuine reform must introduce flexible, government-supportedcontribution mechanisms that take into account fluctuating and precariousincomes. Such mechanisms should facilitate the integration of workers in theconstruction, agriculture, and freelance sectors into the system.
The paper alsohighlighted the importance of safeguarding the Corporation’s independence,reducing governmental intervention in insurance-related decisions, adoptingprofessional investment standards for the Social Security Fund, anddiversifying investment portfolios to mitigate risks stemming from excessiveconcentration in public debt instruments.
Finally, thepaper considered that combating contribution evasion must form part of anintegrated system that includes both digital and field-based inspection, linkscompliance to access to public and financial services, and activates a securedigital complaints platform for workers. These measures would protect workers’rights and reinforce institutional accountability.
The paperconcluded that real reform of the social security system must combine financialsustainability, intergenerational justice, broader inclusion, and strengthenedgovernance. Only then can the continuity of the system be guaranteed andsocietal trust in Jordan’s social security framework be enhanced.