Pensions rise by 2.8 per cent

AMMAN — The Social Security Corporation (SSC) announced on Tuesday that it has increased the salaries of its retirees by 2.8 per cent to match the inflation rate of 2014.

An SSC statement sent to The Jordan Times quoted SSC Director General Nadia Rawabdeh as describing the pension increase as a “right” stipulated in the 2014 Social Security Law under which pensions are linked to inflation rates.

The law links annual raises of pensions with inflation rates or the growth in the annual average increase in salaries in the Kingdom, whichever is less. 

Rawabdeh noted that the 2.8 per cent increase is the same as last year’s inflation rate, citing official figures released by the Department of Statistics.

She added that 69,199 retirees who are still alive and 86,145 heirs of pensioners will benefit from the new pensions.

The monthly cost of the raise will be JD591,000, while the annual cost is around JD7.92 million.

The 2.8 per cent increase will be added to the May pensions, according to the statement.

Last year, the SSC increased pensions by 5.6 per cent, the inflation rate of 2013, at annual total cost of JD10 million, the statement said.