At the beginning of February 2026, the Economic and Social Council announced the results of the national dialogue on the proposed amendments to the Social Security Law, which included gradually raising the old-age retirement age to 63 years for males and 58 years for females instead of 60 and 55 currently, as well as adjusting early retirement and making it an exception while raising the minimum contribution period to qualify for it.

These amendments come within the framework of responding to the results of the eleventh actuarial study prepared by the General Organization for Social Security, which indicated financial challenges facing the Fund in the long term, which requires balanced reforms to ensure financial sustainability.

First: Why the amendment? Economic background

The social security system is suffering from increasing financial pressures as a result of widespread early retirement and the spread of retirement at the lowest age, which affects the fund’s resources and reduces the insurance surplus available to pay future pensions.

In Jordan, many studies indicate that early retirement represents a source of unemployment and limits job opportunities for young people seeking to enter the labor market, in addition to the erosion of the Fund’s financial resources as a result of a large number of participants entering premature retirement.

Second: Impact on unemployment and the labor market

Raising the retirement age means that individuals will not leave the labor market at the ages of 60 (men) and 55 (women), but will remain employed for longer (up to 63 and 58), leading to:
• Reducing the pressure on the labor market among the category of unemployed youth, as the cases of mass retirement at an early age decrease.
• Increased supply in the labor market for additional years, which may increase competition for available jobs initially, but enhance experience and productivity in the medium term.

In Jordan, with a relatively high unemployment rate, eliminating early retirement and raising the official retirement age may contribute to alleviating the burden on employment and social security budgets in the long term.

Third: The period of benefit from retirement salaries

Raising the retirement age reduces the number of years a retiree receives his pension compared to the current law. for example:
• If the average life expectancy after retirement is about 15-17 years, then delaying 3 years (from 60 to 63) means reducing the period of financial benefit from the pension, which reduces pressure on the fund and secures longer revenues from contributions.
• The same logic applies to females, where working years range from 55 to 58 years.

Fourth: The impact of the amendment on financial sustainability

The proposed amendments are based on an actuarial study indicating that without reforms, the Fund’s resources in the long term may be subject to significant financial pressure as a result of exaggerated early retirement and the erosion of underwriting against future obligations.

Raising the official retirement age and complicating early retirement means:
• Increasing the years of insurance subscription, thus raising the fund’s total accumulated funds.
• Reducing the number of years in which individuals claim a pension after leaving the labor market, which enhances the fund’s solvency and sustainability.

Fifth: The impact of the amendment on economic sectors

At the sector level:
• Sectors that rely on long experience (education, health, public administration) will benefit from the retention of competencies for a longer period, which may raise the quality of services.
• In dynamic sectors that depend on developing technological skills, policies may be needed to update the skills of older workers to ensure fair competition in the market.

Sixth: Analysis of the start of implementation of the proposed amendments

The amendments announced until February 2026 are still in a consultative and legislative stage and are not yet in effect. The Board of Directors of the Public Institution for Social Security approved the proposal to amend the law and sent it to the Council of Ministers to follow up on its constitutional stages before it becomes an effective law.

Stages of applying the amendment
1. Government approval: After approval by the Board of Directors, the draft amendments were sent to the Council of Ministers.
2. Parliamentary consideration: The draft law is discussed in the House of Representatives, where its texts can be amended before voting on it.
3. Publication in the Official Gazette: After Parliament’s approval, the law is officially announced and published, and here the provisions come into effect.
4. Transitional period: The law is expected to include a transitional period (one to two years) to implement the gradual age increase, especially for groups that have not yet reached retirement age.

Sources indicate that **the actual application of the amendments to new and medium-term subscribers may begin in mid-2026 or early 2027 after the completion of legislative procedures, while preserving the acquired rights of subscribers who met the retirement conditions before entry into force.

Seventh: Social and health impacts
• In physically demanding professions, raising the age requires special exceptions to be taken into account to avoid overburdening workers beyond their health capacity.
• Raising the age can contribute to increasing individual savings and thus improving the quality of life after retirement.
• Promoting unemployment and modernizing the labor market requires continuous vocational training and qualification programs, especially for workers over the age of 50.

Conclusion and recommendations

Raising the retirement age and stopping early retirement in Jordan is an important reform step in order to ensure financial sustainability and balance between resources and obligations. However, its success depends on:
1. Implement it gradually, transparently, while protecting the acquired rights of current subscribers.
2. Training and qualification programs to ensure the competitiveness of older workers.
3. Promoting employment opportunities for young people through effective employment policies.
4. Ensuring health and occupational exceptions in cases that require early departure due to health or occupational risks.

With this balance, the amendments become a tool to enhance economic growth and social stability.