Social security contribution

Over the years, working rules and regulations changed globally, and one form or another of social security has been introduced almost everywere.

The purpose is to provide retirement funds for the elderly people who spent most of their lives working, or became disabled, or to provide compensation for the families of those who lost their lives while working.

In Jordan, we have a Social Security Corporation to which the employer pays about two-thirds of the contribution while the employee pays about one-third.

Jordanians who work abroad, or self-employed residents, can voluntarily become members of the corporation, provided that they pay both the employer’s and the employee’s contributions.

Under the so called “early retirement” benefit, workers can work and contribute for 15 years only, then retire and get an immediate retirement fund, even if they are still middle aged, for as long as three decades, if not more.

In my opinion, this is harmful to the investment fund of the corporation.

The original idea was to provide retirement benefits for those who worked and contributed most of their lives.

The number of retirement years would most probably be much less than the years they spent working, in such case.

I believe that those who retire early should not receive benefits before the age of 60, to safeguard the investment fund of the corporation and thus its members’ deserved benefits.

Increasing the percentage of contribution will only make it less tempting to contribute by all parties. Businesses will do whatever they can to reduce their costs and increase their profits, or at least to survive.

Moreover, those who became members of their own will, when retiring early will overnight start putting money into their pockets, rather than pay it. 

Nizar Sawalha,
Amman