Jordan’s garment sector commits to digitizing wages responsibly to promote decent work

Amman, October 27, 2021 - Representatives across the garment sector, the government, the finance sector and development organizations gathered today to reinforce their commitment on scaling wage digitization to help protect workers’ rights.

The high-level event, chaired by the Central Bank of Jordan, resulted in new commitments to act on the recommendations put forward in a new first-of-its-kind report, ‘Promoting Decent Work by Digitizing Wages Responsibly in Jordan’.

The study was launched in partnership by the International Labor Organization (ILO), Better Work, Deutsche Gesellschaftfür Internationale Zusammenarbeit (GIZ) GmbH and the United Nations-based Better Than Cash Alliance.

Every month, over two thirds of the garment sector workforce in Jordan receive their wages in cash, which can cost factories up to US$1,000 per month. Receiving wages digitally not only provides companies with opportunities for enhanced productivity, efficiency, and transparency, but it is also an important step toward increasing financial account use and greater financial capability. The latter is particularly the case for women, who make up 73 percent of Jordan’s garment workforce.

Commitments made during the high-level include:

Head of Digital Financial Services and Innovation Department at the Central Bank of Jordan, Mr. Mohammad Al Duwaik: “The Central Bank of Jordan will continue to work on issuing all needed regulations and instructions that will help improve offered digital solutions and services that allow interoperable transactions and increase their uses.”

Director of Inspection Department at the Ministry of Labor, Eng. Haitham Alnajdawi: “Responsible wages digitization facilitates the inspection process and aids in ensuring workers’ right and equal treatment.”

President of the General Trade Union of Workers in Textile, Garment & Clothing Industries, Fathalla Omrani: “The union is committed to helping build the confidence of workers and factories while managing the change process. The union’s role is also based on ensuring that workers are protected and that their interests and desires are taken into account during the process of designing solutions through service providers.”

Board Member and Representative of the leather and garment sector, Jordan Chamber of Industry, Eng. Ilhab Qadri: “The Jordan Chamber of Industry is committed to continuing to support the sector by overcoming any challenges that arise, representing the sector with government agencies, and working to find the necessary solutions to ensure the transition to responsible digital wages.”

CEO of Jordan Garment and Textile Exporters Association (JGATE), Ms. Sawsan Habahbeh: “JGATE is committed to supporting companies in building a sustainable business model by collecting experiences and good practices for them, including the adoption of digital wages in their companies.”

Technical Advisor for Digital Financial Services and Remittances for Migrant Workers, GIZ, Ms. Afia Rasheed: “GIZ has committed to support financial sector providers on the development of digital international remittances worker-centric solutions as part of the Digi#ances activities of the co-finance project with the Swiss Agency for Cooperation and Development (SDC), aiming to promote financial inclusion of migrant workers in Jordan.”

Jordan’s leadership in taking on the wage digitization agenda advances decent work and economic growth (Sustainable Development Goal 8). Scaling responsible digital wages will protect and financially empower workers, particularly women and migrants.

Media contacts

• Better Work: Mouna Noufal, noufal@ilo.org
• Better Than Cash Alliance: Fareeza Ibrahim, fareeza.ibrahim@uncdf.org