Migrant Workers and Refugees in Social Security

By: Adv. Rami Qweider and Khaled Al Jomaa

Expanding coverage within social security systems is a fundamental pillar for enhancing financial sustainability and achieving social justice, particularly in economies that increasingly rely on migrant and refugee labor. In Jordan, despite a legal framework that allows these groups to be covered by social security, actual participation levels remain limited relative to their share in the labor market, reflecting a clear gap between the legal text and its practical implementation.

The impact of this gap is not limited to depriving a wide segment of workers of social protection; it also affects the efficiency of the system itself by depriving it of an important source of contributions that could help strengthen its financial sustainability. In light of the challenges facing social security in balancing revenues with long-term obligations, the issue of weak inclusion of migrant workers and refugees emerges not only as a matter of justice but also as an untapped opportunity that could support the system’s long-term stability.

Accordingly, this article seeks to analyze the reasons behind the low coverage rates of these groups, explore the resulting implications, and raise a fundamental question as to whether broadening the base of contributors to include them more comprehensively could represent one of the keys to strengthening the sustainability of social security in Jordan.

The Coverage Gap in the Context of the Jordanian Labor Market:

The Jordanian labor market is characterized by the presence of a significant segment of migrant workers and refugees who contribute across various economic sectors. However, their rates of inclusion in the social security system remain limited compared to their actual presence, as they account for no more than approximately 14% of total social security contributors. This reality reflects a gap between the legislative framework, which in principle allows for their inclusion, and the practical implementation that leaves a large share of this workforce outside the umbrella of insurance protection. While an expanded contributor base is expected to support the stability of the system, the continued low coverage rates raise questions about the factors preventing the integration of these groups, as well as the untapped opportunities that broader participation could provide in strengthening the sustainability of social security.

Over the past two decades, Jordan has witnessed significant economic and demographic transformations, most notably the influx of large numbers of refugees and the expansion of the informal economy, which is estimated to account for around 54% of the labor force and to have a value of nearly JOD 30 billion. This has created growing challenges for the capacity of the social protection system to achieve effective insurance coverage across all working groups, whether Jordanians, migrant workers, or refugees. According to the International Labour Organization, the workforce in the informal sector is estimated at approximately 1.207 million workers, highlighting the need to develop both the legal and institutional frameworks in ways that enhance the inclusiveness of the system and ensure equitable access to social protection in the labor market.

In this context, labor market data reflects the reality of non-Jordanian workers, with the number of non-Jordanian workers holding work permits in 2024 reaching approximately 313,000 workers. This workforce is diverse in terms of nationalities, including Arab nationalities such as Egyptians and Syrians, alongside non-Arab nationalities, most notably Bangladeshi, Ethiopian, Indian, and Filipino workers, in addition to other nationalities. This diversity reflects the multiplicity of challenges associated with including these groups in the social security system, whether due to differences in their legal status, limited awareness and procedures related to registration, or the nature of employment contracts that may hinder their regular participation in the insurance system.

Legal and Regulatory Barriers to the Inclusion of Migrant Workers in the Social Security System:

Weak legal awareness among non-Jordanian workers is one of the structural factors contributing to their low levels of inclusion in the social security system. A large proportion of them lack sufficient knowledge of the rights and obligations established under both the Labour Law and the Social Security Law. This deficiency is not limited to a lack of awareness of the mandatory nature of social security contributions, but also extends to limited understanding of the insurance benefits associated with it, registration mechanisms, and avenues for objection or grievance in cases where employers fail to register them.

The impact of this factor is heightened by the diversity of nationalities among non-Jordanian workers, as well as differences in language and educational backgrounds, which reduce the effectiveness of conventional awareness tools and make access to accurate legal information unequal. In addition, some workers rely on informal networks such as brokers or co-workers for information, which often leads to the circulation of misconceptions about social security, including the belief that it is not mandatory, of limited value, or restricted to Jordanians. This weakens incentives to demand or comply with registration.

Reports by the International Labour Organization indicate that limited awareness of labour rights is one of the key factors affecting compliance by workers and employers with labour market legislation, particularly among migrant workers, where weak awareness intersects with imbalances in bargaining power between workers and employers, making workers less able to claim their rights or challenge unlawful practices.

Similarly, the weak integration of refugees into the formal labour market, and their limited inclusion in the social security system, is linked to a state of legal and economic uncertainty. In many cases, refugees hesitate to engage in formal employment for fear that it may negatively affect their legal status or eligibility for humanitarian assistance, particularly given that the work opportunities available to them are often temporary or unstable. The absence of a clear long-term vision regarding continued stay, return to the country of origin, or resettlement also makes decisions related to participation in long-term systems, such as social security, highly uncertain.

Some refugees may perceive formal employment as leading to the reduction or loss of cash or in-kind assistance on which they depend as a primary source of income, prompting them to prefer informal work that allows them to combine earnings with aid. In this context, reports by the United Nations High Commissioner for Refugees (UNHCR) and the International Labour Organization indicate that unclear policies regarding the relationship between employment and assistance are among the factors influencing refugee behaviour in the labour market and may limit their transition into the formal sector. UNHCR’s Vulnerability Assessment Framework (VAF) in Jordan indicates that assistance is targeted based on income level and vulnerability, and that a large proportion of refugee households depend on it as a main source of livelihood, which affects their economic decisions, including engagement in formal employment.

Accordingly, refugees’ decisions regarding work and participation in social security are not based solely on direct economic considerations, but are also influenced by uncertainty surrounding their legal future, stability in the host country, and prospects for resettlement or return. This calls for clearer and more integrated policies that ensure formal employment does not conflict with access to basic protection, while strengthening trust in transitioning to the formal economy.

Thus, the absence of legal, economic, and social awareness is not merely a secondary factor, but a central driver in reproducing the coverage gap in social security. It contributes to entrenching a labour environment in which non-registration becomes the norm rather than the exception. This necessitates more targeted legal awareness policies that take into account the linguistic and social characteristics of non-Jordanian workers, moving beyond general approaches toward more specialized and effective tools that strengthen their ability to access their rights and engage meaningfully in the social protection system.

Another practical challenge concerning the inclusion of non-Jordanian workers in social security lies in the indirect relationship between work permits and access to insurance benefits. While possession of a work permit is not in itself a legal condition for inclusion in social security, in practice it is often linked to the worker’s actual ability to access rights and entitlements. In many cases, a non-Jordanian worker may be registered in social security, yet the absence or irregularity of a work permit may restrict their ability to claim benefits, whether for procedural reasons or due to overlapping mandates among institutions regulating the labour market.

This creates a gap between formal contribution and actual benefit. Many non-Jordanian workers face difficulties obtaining lump-sum compensation if they do not hold a valid work permit, as they are required to obtain a clearance certificate from the Ministry of Labour. If it is found that they lacked work permits for some or all years of service, they may become liable for penalties related to non-issuance of permits. Consequently, the worker bears the cost of these penalties, which are deducted from their social security entitlements.

This is despite the fact that Article 12 of Jordanian Labour Law No. 8 of 1996 stipulates that responsibility for obtaining work permits rests with the employer, not the worker. However, the Regulation on Work Permit Fees for Non-Jordanians and its amendments (No. 142 of 2019) does not clearly distinguish who bears responsibility for payment of permit fees and/or fines, and explicitly refers in several provisions to either the worker or the employer. This creates an obstacle to workers receiving their social security entitlements, reduces incentives to participate in social security, and reinforces uncertainty among both workers and employers. It also weakens trust in the insurance system, negatively affecting incentives for regular contributions and continuity of participation, and reducing the contribution rate relative to the number of non-Jordanian workers.

This highlights the need for a comprehensive legislative review of all laws, regulations, and instructions directly or indirectly linked to social security, including, but not limited to, the Regulation on Work Permit Fees for Non-Jordanians and its amendments (No. 142 of 2019). Its provisions require revision so that responsibility for paying work permit fees and/or penalties lies solely with the employer rather than the worker. The costs of permits and penalties constitute one of the greatest obstacles preventing non-Jordanian workers from participating in social security, particularly where previous fines resulting from failure to renew permits create financial barriers that prevent them from benefiting from insurance entitlements.

The expansion of the informal labour market is also one of the most prominent structural barriers to the inclusion of non-Jordanian workers in the social security system. A large proportion of them work under employment arrangements lacking a formal legal framework, including the absence of official contracts, unregistered enterprises, or employment outside authorized occupations. In this context, exclusion from social security is less the result of an individual decision than a direct reflection of the market structure in which they work, where the legal basis for mandatory registration and contribution is absent.

At the same time, the growth of the informal economy creates an environment in which enforcement of legislation becomes difficult, as regulatory authorities have reduced capacity to access workplaces and monitor compliance. This entrenches patterns of employment outside the scope of social security. International Labour Organization reports indicate that workers in the informal economy are the least covered by social protection systems, reflecting the direct relationship between informality in the labour market and weak insurance coverage. Accordingly, addressing the limited inclusion of non-Jordanian workers cannot be separated from policies aimed at reducing the informal economy, as it is the framework within which most of these challenges arise.

Employer-related considerations also play an important role in determining the extent of inclusion of this group. Social security contributions may be viewed as an additional cost, particularly given wage levels and operational structures in some sectors, leading to uneven compliance with registering workers or maintaining their insurance coverage. This is exacerbated by weak monitoring and inspection mechanisms due to the limited number of labour inspectors, estimated at around 160 inspectors distributed across labour directorates throughout the Kingdom. This number is not proportionate to the size and breadth of the labour market or the regulatory tasks assigned to them, limiting the ability to effectively monitor employers’ compliance with the law. As a result, some migrant workers remain outside the protection umbrella, or in irregular contribution arrangements that do not guarantee effective and full access to insurance benefits.

Accordingly, the limited inclusion of migrant workers and refugees reflects not only a gap in social protection, but also financial dimensions related to the sustainability of the social security system. In this regard, the actuarial study of the Social Security Corporation indicates that the expansion of the informal labour sector is one of the most significant challenges facing the financial sustainability of the social security system, due to its direct effect in expanding the base of uncovered workers and lowering regular contribution rates. Therefore, expanding the inclusion of non-Jordanian workers could represent an opportunity to strengthen the system’s insurance resources, especially given that Jordanian retirees constitute approximately 97.2% of total retirees as of the end of 2024, reflecting the limited access of non-Jordanians to long-term benefits such as pensions.

In contrast, most non-Jordanian workers tend to benefit from the social security system through lump-sum compensation upon permanently leaving the country, which in many cases represents a one-time benefit in exchange for their contributions. This type of compensation accounted for approximately 50.1% of all lump-sum compensation cases linked to the reason “the insured non-Jordanian permanently leaving the country,” out of around 39,000 beneficiaries who received lump-sum compensation in 2024. Cumulatively, the number of beneficiaries from this type of compensation is estimated at around 290,000 cases (non-Jordanians) during the period from 2004 to 2024, excluding 2020 and 2021, which were affected by the COVID-19 pandemic.

Accordingly, addressing the limited inclusion of migrant workers in the social security system is not only a legal matter, but also requires a deeper understanding of labour market structures and prevailing employment mechanisms, enabling the development of more flexible tools and policies that encourage the sustainable integration of this group into the insurance system. This expansion in coverage has a dual dimension: it not only strengthens social protection for this group, but also positively contributes to the sustainability of social security itself, given that most migrant workers do not benefit from long-term benefits such as pensions, and their access is generally limited to short-term benefits or specific compensations. Their contributions therefore constitute an additional source of revenue without extended pension liabilities.

The Integration of Refugees in the Social Security System:

The integration of refugees into the social security system constitutes one of the challenges arising from the intersection of legal, economic, and social dimensions, given the particularity of their legal status and the overlap between labour market conditions and opportunities for access to insurance-based protection. Although the Jordan Compact of 2016 represented an important framework for organizing the international community’s response to the refugee crisis, through supporting the integration of Syrian refugees into the formal labour market in exchange for international support to help cover work permit costs, while refugees paid symbolic fees, the implementation of this framework later underwent shifts that affected the level of support and the costs of entering the labour market. This, in turn, impacted opportunities for integrating this group into the formal labour market and consequently into the social security system.

As part of efforts to expand coverage, the Social Security Corporation launched the Istidama++ Program in mid-2022 with the aim of supporting the transition to the formal economy and reaching new segments of workers. The program was funded by the Kingdoms of the Netherlands and Norway, in coordination with the International Labour Organization and the Ministry of Planning and International Cooperation. It provided support for social security contributions amounting to JOD 30 per month, in addition to a cash inclusion incentive with a total value of JOD 400, disbursed in four installments. The program concluded in 2025, highlighting an important challenge related to the lack of continuity despite its significance. The temporary nature of the support may limit beneficiaries’ ability to continue contributing to social security after the financial incentives cease, thereby reducing the program’s long-term impact.

In this context, reviewing comparative experiences is important for understanding mechanisms of refugee integration. The Turkish experience, in particular, represents an important model from which lessons can be drawn. The legal framework regulating Syrian refugees under temporary protection allowed access to formal employment under specific conditions, including obtaining a work permit, working in the province of registration, and adhering to an employment quota not exceeding 10% of the total workforce in the enterprise. It also established a minimum wage and regulated working hours within the legal framework. The system further enabled their inclusion in the social security system when employed formally, with contributions shared between the worker and the employer. Coverage included health insurance, protection against short- and long-term risks, and contributions to the unemployment insurance fund.

Joint efforts by the Turkish government and several international partners supported this framework through partial coverage of work permit costs, incentives for employers to hire refugees, and training and awareness programs that helped increase the number of refugees obtaining official work permits and strengthened their integration into the formal labour market. Nevertheless, the continued employment of Syrians in the informal sector affected the revenues of the Turkish Social Security Institution, with estimated annual losses of TRY 7 billion in social security revenues that could have been generated had the same workforce been employed formally.

When comparing this experience with the Jordanian case, it becomes clear that both countries link inclusion in social security to participation in the formal labour market and the acquisition of work permits. However, the Turkish experience was distinguished by greater integration of support tools and accompanying policies, whereas the Jordanian case continues to face challenges related to the cost of work permits, the sustainability of support programs, and limited opportunities in organized sectors. Accordingly, the Turkish experience offers a model whose elements could be adapted to develop more integrated and flexible policies that contribute to the sustainable inclusion of refugees in the labour market and the social security system.

The challenges related to refugee inclusion are not limited to refugees alone, but also extend to other groups residing in Jordan who face similar legal circumstances. This includes Palestinians from Gaza residing in the Kingdom, who are required to obtain a work permit (exempt from fees), which in turn affects the extent of their integration into the social security system. In the same context, it is notable that the voluntary subscription scheme in social security remains unavailable to non-Jordanians, which limits opportunities to broaden the contributor base. Accordingly, examining the possibility of allowing voluntary participation for specific groups, such as children of Jordanian women and residents from Gaza, may represent a policy option worthy of discussion, given its potential to expand the contributor base and strengthen insurance contributions, thereby supporting the financial sustainability of the social security system while also enhancing social protection coverage for these groups.

Despite these challenges, the inclusion of refugees in the social security system carries dimensions that go beyond the social aspect to include the financial dimension linked to system sustainability. Integrating this group into the contributor base can help expand insurance revenues, especially given their limited access to long-term benefits such as pensions, while they tend instead to rely on short-term benefits or specific compensations. It also enhances the efficiency of the system and its ability to expand in a balanced manner, achieving equilibrium between the goals of social protection and the requirements of financial sustainability. This makes expanded coverage an option of dual value in terms of both social justice and financial stability.

Recommendations:

Based on the legal and regulatory barriers outlined above, there is a need to adopt a package of integrated reforms aimed at improving insurance coverage for non-Jordanian workers, as follows:

1. Strengthen targeted legal awareness efforts by designing specialized awareness programs for non-Jordanian workers in their native languages, using direct outreach channels such as workplaces and service centers. Awareness of labour rights and social security should also be integrated into work permit issuance and renewal procedures to ensure that legal information is delivered accurately and systematically.
2. Align labour policies with refugee assistance policies in order to reduce the uncertainty affecting refugees’ economic decisions. This can be achieved through clear mechanisms ensuring that assistance is not immediately withdrawn upon entry into formal employment, such as transitional periods or gradual support reduction systems, thereby strengthening incentives to move into the formal labour market without direct livelihood risks.
3. Reorganize the relationship between work permits and access to insurance benefits by simplifying procedures related to benefit disbursement and ensuring that workers’ entitlement to social security benefits is not restricted due to administrative violations for which they bear no responsibility. This would strengthen trust in the system and encourage regular participation.
4. Undertake a legislative review of the Regulation on Work Permit Fees for Non-Jordanians No. (142) of 2019 and its amendments to ensure a clear allocation of responsibility for payment of fees and fines to the employer, in line with the provisions of the Labour Law, and to prevent workers from bearing financial burdens that obstruct their access to insurance entitlements or reduce their willingness to participate in the system.
5. Address the coverage gap in the informal economy by developing policies that incentivize transition to the formal sector through reducing compliance costs, simplifying registration procedures, and targeting sectors employing high numbers of non-Jordanian workers with dedicated regulatory programs and incentives.
6. Enhance the effectiveness of monitoring and inspection mechanisms by increasing the number of labour inspectors and developing risk-based inspection tools, thereby improving compliance levels and reducing practices of non-registration or irregular registration of workers.
7. Improve access to insurance benefits by simplifying the requirements for lump-sum compensation payments and reviewing procedures that may lead to deductions of fines from workers’ entitlements due to violations for which they are not legally responsible, thereby ensuring fair access to insurance rights.
8. Encourage employers to expand inclusion in social security by developing targeted support programs for employers, including financial incentives or partial coverage of social security contributions or work permit costs, in cooperation with donors such as the European Union and the World Bank. The aim is to reduce the cost of formal employment and encourage worker registration in social security, provided that such programs are sustainable and linked to monitoring mechanisms that ensure compliance and strengthen system revenues.

References:

• Social Security Corporation. Annual Report 2024. Amman: Social Security Corporation, 2024.
• Al Mamlaka TV. “Minister of Labour: 54% of the Labour Force in Jordan Works in the Informal Economy.” 2026.
• 7iber. 2020. “The Informal Sector and Registration in Social Security.”
• Jordan Strategy Forum. 2023. The Informal Economy in Jordan: A Hidden Opportunity for Greater Productivity and Economic Growth.
• Ministry of Labour. Annual Report 2024. Amman: Ministry of Labour, 2024.
• International Labour Organization (ILO). Extending Social Security to Migrant Workers: Lessons from International Experience.
• UNHCR. Vulnerability Assessment Framework (VAF) – Jordan: Baseline Survey. Amman: UNHCR, 2015.
• Regulation on Work Permit Fees for Non-Jordanians and its Amendments No. (142) of 2019, Articles (3, 6), and Jordanian Labour Law No. 8 of 1996, Article (12).
• AmmanNet. “The Low Number of Labour Inspectors Deepens the Crisis of Migrant Workers in Jordan.” 2022.
• International Labour Organization (ILO). Report to the Government: 11th Actuarial Review of the Social Security Corporation as at 31 December 2023. March 2025.
• Syrian Dialogue Center. Syrian Labour in the Turkish Labour Market: A Case Study of Residents in Youth Housing. 2023.