Gov’t plans to exempt start-ups from social security registration for first five years

AMMAN — The government is working on amendments to the Social Security Law and the law pertaining to public-private partnerships aiming to create a better environment for start-ups to thrive, Minister of Digital Economy and Entrepreneurship Muthana Gharaibeh said on Saturday.

“We’re trying to get more investments and to make [start-ups] more exposed to international capital,” Gharaibeh told The Jordan Times over the phone. 

The amendments would serve to mitigate start-ups’ social security burden and “optimise the process of making businesses happen in Jordan”, according to the minister.

In relation to the Social Security Law, Gharaibeh said that the government is working with Parliament on an amendment which will give start-ups a five-year exemption from registration.

“It’s a big burden on start-ups to start to pay social security from year one, when they are not yet getting any profit,” the minister said. 

Another obstacle the government is working to address is the current law pertaining to public-private partnerships, according to Gharaibeh, who describes the current regulations as “too rigid and complicated for start-ups”. 

An amendment to the current law would enable the public sector to do more work with start-ups, according to the minister, who added that the government will meet with Parliament to draft the proposed amendment before the end of the year.

Furthermore, the government is working to make Jordan more visible to international investors, Gharaibeh stressed, referring to the Digital Mashreq Forum, held two weeks ago, which brought together representatives from the public and private sectors of Jordan, Lebanon and Iraq to discuss developing the region’s digital economy.