ALBAWABA – Jordan's Social Security Corporation (SSC) announced on Thursday the annual pension raise for social security retirees, at 2.74 percent, effective as of May 1, 2019, according to the Jordan News Agency, Petra.
SSC Director-General Hazem Rahahleh told a press conference Thursday that the increase is a legal entitlement, as Social Security Law No. 1 of 2014 stipulates linking retirement and disability pensions either to inflation or to the annual growth rate of average wages, whichever is less, at a ceiling of JOD20 ($28.16), in May of each year.
He noted that the growth rate in the consumer price index (a measure of inflation) for the year 2018 amounted to 4.46 percent, according to the Department of Statistics, whereas the growth rate in average wages amounted to 2.74 percent.
As for the average wages of the insured persons covered by social security for the year 2017, it amounted to JOD511 ($718.64), while last year it reached JOD525 ($738.95), according to the corporation’s data, and therefore the average wage growth rate is 2.74 percent.
Accordingly, the institution decided that the increase in pension and disability benefits would be 2.74 percent, where the law stipulates that the lowest percentage be taken.
Moreover, the ceiling of this increase will be JOD 21.46 ($30.17), as the legally specified ceiling of JOD20 is linked to inflation rate, noting that the ceiling last year was set at JOD20.85 ($29.36).
The director also indicated that the number of individuals who will benefit from this increase stands at 95,600 living retirees, in addition to 109,000 eligible heirs, at a monthly cost of JOD1.014 million ($1.4 million), or JOD12.44 million ($17.5 million) annually; where the average increase for retiree is JOD7.75 ($10.90).
Rahahleh also highlighted that the annual increase in inflation for insurance retirees includes the salaries of old seniority, total and partial natural disability, total injury disability (disability resulting from a work injury), natural death, and accidental death.
As for early retirement and partial disability, their salaries will include inflation when each of those pensioners completes the age of 60 years for males and 55 years for females, or in the event of their death.
He noted that 44,305 early retirees will receive this increase either because they have completed the specified age or due to their death. He also confirmed that the planned increase will be incorporated in the salaries issued for social security retirees for the month of May.
On the other hand, Rahahleh indicated that the Corporation’s Board of Directors has agreed to postpone the instalments for the advances issued to the retirees due in May. The instalments will be rescheduled to the end of the payment schedule, without additional interests.
This decision includes the 23,000 retirees benefiting from these advances, who received advances with a total value of JOD74 million ($104 million).
