Oman- The young man, Obada Melhem (24 years old), has been working at a gas station in Jordan for 3 years for a monthly wage of 260 dinars ($366), which is the minimum wage, and his salary is not enough to last him until the middle of the month, as he pays accumulated debts, transportation fees, and telecommunications, electricity, and water bills, and then it begins. A new cycle of debt and the young man’s suffering becomes like a never-ending vicious circle.
Melhem told Al Jazeera Net that he works 9 hours a day, and he holds a bachelor’s degree in science, adding that the lives of the vast majority of Jordanian workers are no different from what they suffer in light of the high unemployment rates in the country.
The stories of workers in the Kingdom are similar to each other, but the vast majority of those Al Jazeera Net spoke to attribute their low standard of living to the decline in the minimum wage, which in their opinion is hardly sufficient for the many requirements of life, with its cost rising day after day.
Between rejection and acceptance
After a long wait and lengthy discussions, and despite reservations expressed by broad economic sectors, the tripartite committee – whose membership includes representatives of employers, the government and workers – announced raising the minimum wage for workers in the private sector from 260 to 290 dinars ($367-409), starting from January 1, 2025, amid a clear difference in the outlook of employers and their employees alike.
According to confirmations issued by the Jordanian Ministry of Labor, “In order to raise the standard of living of a large segment of workers in the private sector, the tripartite committee agreed during its meeting to balance the right of workers to improve their wages and the economic conditions of employers.”
Director of the Labor Relations Directorate at the Ministry of Labor, Adnan Al-Dahamsha, confirmed that raising the minimum wage includes all institutions, including educational institutions in the private sector such as schools, nurseries, kindergartens, and universities, which operate under a contract system and whose workers receive less than the minimum wage.
In an interview with Al Jazeera Net, Al-Dahamsha pointed out that the decision to raise the minimum wage “was subject to a precise and difficult equation that took into account the interests of all parties, and came within the available capabilities.”
He said that the segment that receives low wages is small compared to the total number of Jordanian workers, whose number ranges between 400 and 500 thousand workers in the Kingdom, and they are usually unskilled workers who do not have sufficient work experience, according to him.
Find balance
For his part, economic expert Amer Al-Shoubaki believes that the government fell into great embarrassment when it demanded a raise in the minimum wage for fear that its decision would cause employers to refrain from registering their workers with the Social Security Institution in order to avoid raising the financial allocations for workers in Social Security paid by employers. work, and therefore employers may see that the decision did not do them justice.
Al-Shoubaki added in a comment to Al-Jazeera Net, saying, “On the other hand, the decision to raise the minimum wage came in the interest of employees, workers, and untrained workers in many sectors, even though the amount – which is 290 dinars – does not meet the aspirations of employees and workers, especially with the rise in the wave of High prices on the Jordanian street, noting that the last increase in the minimum wage was in the year 2021, and it rose from 220 dinars to 260 dinars at that time.
Poverty line
Al-Shoubaki pointed out that the decision to raise the minimum wage to less than 300 dinars ($422.96) is important, especially since there is legislation requiring government financial support for those with monthly incomes below 300 dinars per month.
A research paper prepared by the Jordanian Labor Observatory indicated that the current minimum wage of 260 dinars – which has not been modified since 2021 – will leave large sectors of workers unable to meet the basic needs of their families, especially with the continuing rise in inflation rates.
The study said that raising the minimum wage to good levels is a deliberate step to enhance social protection and stimulate economic growth, without posing any fundamental harm to employers.
She explained that the minimum wage in Jordan constitutes only 41% of the average wage of 627 dinars ($883.98), while the International Labor Organization and global best practices recommend that the percentage not be less than 55%.
The paper said that the current minimum is far from covering the basic needs of workers and their families, especially in light of the high dependency rate in Jordan, as each working person supports at least 3 individuals, stressing that raising the minimum wage to fair levels guarantees improvement of the living conditions of many people. families, and reduces high poverty rates in Jordan.
The labor research paper indicated that one of the most prominent justifications provided by the paper for raising the minimum wage is its role in stimulating the national economy by enhancing the purchasing power of workers and increasing local demand.
According to the Labor Observatory, there is no scientific evidence indicating that raising the minimum wage leads to a significant loss of jobs or the bankruptcy of small enterprises, as employers rely on a productive and trained workforce to maintain production levels and competitiveness, which makes laying off employees as a result of increasing wages a step. Illogical.
The paper stressed the importance of raising the minimum wage significantly to enhance the economic participation of young people and women, who constitute a large percentage of the population but suffer from high unemployment rates.
The study showed that low wages constitute a major barrier to these groups entering the labor market, as current wages do not cover the costs of transportation or family care for women, which discourages them from working.
The Jordanian Labor Law stipulates that the calculation of the minimum wage must be based on cost of living indicators, while the term “inflation rates” is not used, and it gives the Tripartite Committee for Labor Affairs the right as the sole body authorized to determine the minimum wage.
