Jordan allows companies impacted by COVID-19 lockdown to cut wages

The new labor regulations also include instructions on cutting salaries and leave balances of furloughed workers, as well as contract agreements. (File/AFP)
Short Url
  • Only companies approved by the labor and industry and commerce ministries can implement the proposed pay cut

DUBAI: Jordan has allowed companies affected by the COVID-19 crisis to cut employees’ May and June salaries by 30 percent, state news agency Petra reported.

The new government order comes after the coronavirus outbreak forced businesses into a weeks-long lockdown.

“The move is part ongoing review of current developments and takes into account the conditions of employers in sectors most affected by the economic fallout of the COVID-19 pandemic,” according to a government statement.

But employees “may not be coerced or pressured to agree to the salary reduction agreement in all cases,” the report added.

Only companies approved by the labor and industry and commerce ministries can implement the proposed pay cut.

The new labor regulations also include instructions on cutting salaries and leave balances of furloughed workers, as well as contract agreements.