The Workers' House believes that the decision issued by the Tripartite Committee for Labor Affairs, which stipulates raising the minimum wage from 260 dinars to 290 dinars, is unfair to workers, as it does not adopt the rules required by the Labor Law for determining the minimum wage and ignores the legal basis stipulated in Article 52 of the law, which requires the adoption of cost-of-living indicators as a basis for determining the minimum wage, rather than inflation rates.
The tripartite committee's decision was based primarily on cumulative inflation rates for the years 2021 to early 2025, which amounted to approximately 10.4%, resulting in a minimum wage increase of only 30 dinars. However, this approach ignores the fact that inflation reflects average price changes across a wide range of goods and services, including luxuries and non-essentials, while basic living costs are rising at a faster and higher rate. For example, the monthly cost of living for one person alone, excluding rent, amounts to approximately 350 dinars, while rent ranges between 200 and 300 dinars. This means that the new minimum wage does not even come close to covering basic living needs.
It is well known that the minimum wage is a social protection tool aimed at ensuring a decent life for workers, especially the most vulnerable groups. However, the Tripartite Committee treated the minimum wage as if it were the result of negotiations between parties with divergent interests. This contradicts the basic principles of the minimum wage setting process, which relies on objective indicators such as the actual cost of living, rather than on negotiations or bargaining, which by their very nature favor the stronger and more influential party: employers.
Moreover, this decision is inconsistent with international experience, which indicates that the minimum wage should range between 50% and 60% of the average wage in the country. In Jordan, the average monthly wage is approximately 627 dinars, meaning that a fair minimum wage should range between 313 and 376 dinars. The current decision falls far short of achieving this balance and does not take into account the poverty line, which is estimated for a family of 4.8 people at approximately 480 dinars according to official data, and approximately 800 dinars according to World Bank estimates.
Moreover, raising the minimum wage to 300 dinars, as demanded by the General Federation of Trade Unions, does not constitute a real burden on the national economy. Studies indicate that increasing the minimum wage to this level would only increase production costs by 1.5%, a small percentage that companies can easily absorb without affecting their profits or competitiveness. On the contrary, improving wages would reduce the rate of employee turnover, which would lower recruitment costs, enhance workforce stability, and support the economy by increasing domestic demand and stimulating household spending, particularly on local products.
The Workers' House affirms that this decision, since it violates the provisions of the Labor Law and does not adopt cost-of-living indicators as a basis, will be subject to legal challenge by any party harmed by it, primarily the workers. The House calls on the relevant authorities to review and rectify the decision in a manner consistent with the law, achieving social justice, and enhancing the stability of the national economy.
Jordanian Center for Labor Rights "Workers' House"
