Building a Unified Framework for Sustainable Formalisation and Economic Inclusion

Towards a Coordinated Approach to Formalisation in Jordan: Mapping Systems, Challenges, and Opportunities

The informal economy in Jordan plays a significant role in providing livelihoods, yet its scale and dynamics present important challenges for ensuring that workers and enterprises can benefit fully from the protections and opportunities of formality. This ILO study provides a structured mapping of the regulations, policies, actors, and interventions shaping formalisation in Jordan. It identifies the structural factors that sustain informality—including high formalisation costs and limited institutional coordination—and outlines options for more integrated, systemic solutions. Grounded in ILO Recommendation No. 204, the report emphasises that formalisation is a multi-layered transformation involving government institutions, the private sector, and workers. Drawing on primary interviews and extensive policy and data review, the study offers an evidence-based assessment of the challenges and opportunities for strengthening formalisation. It supports ongoing national efforts to link social protection, employment, and enterprise development in pursuit of a more resilient, fair, and inclusive economy.