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  3. Cabinet suspends mandatory retirement rule, approves funding and tax measures

Cabinet suspends mandatory retirement rule, approves funding and tax measures

23/12/2025 | 11:54:02

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Amman, Dec 23 (Petra) - The Cabinet on Tuesday suspended the implementation of previous decisions that required the mandatory termination of government employees who have completed 30 years of service or accumulated 360 social security contributions, effective immediately.

The move aims to strike a balance between containing public spending and retaining experienced personnel in government institutions, while giving administrations greater flexibility to manage human resources based on actual needs.

Under the decision, authority to end the service of employees meeting the service or contribution thresholds is returned to the competent bodies, as was the case previously, and will now be exercised according to institutional requirements.

In a separate decision, the Cabinet approved an agreement to settle outstanding debts owed to King Abdullah University Hospital, under which the government will pay 10 million dinars this month, followed by monthly payments of 3 million dinars starting early next year until the full amount - estimated at around 39.6 million dinars - is settled. The move is intended to support the hospital’s financial sustainability and continuity of services.

The Cabinet said the decision is part of broader government efforts to clear long-standing arrears, noting that since taking office in September 2024, the government has paid nearly 600 million dinars of accumulated dues, out of more than 1 billion dinars, with the remainder to be settled over the next three years.

The Cabinet also approved allocating 10 million dinars to the Ministry of Higher Education and Scientific Research to cover tuition fees for students who qualified for grants or loans from the Student Support Fund, enabling them to register for the second semester of the 2025/2026 academic year.

In addition, ministers agreed to extend a 75 percent exemption on fees imposed on horticultural agricultural products intended for export until the end of 2026, a move aimed at supporting the agricultural sector, preserving jobs and boosting exports.

The Cabinet further approved tax settlements between taxpayers and the Aqaba Special Economic Zone Authority in line with existing regulations, provided that outstanding amounts are paid in full within two months. The measure is intended to stimulate economic activity in the zone and help businesses regularize their tax status.

Ministers also approved exempting imported fabric used exclusively for the production of reusable cloth bags from customs duties and other taxes, as part of efforts to promote environmentally friendly alternatives and expand employment opportunities in the governorates.

//Petra// AA

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