Amman, June 9 (Petra) — The Jordan Strategy Forum (JSF) issued a
report within its “Policy Brief” paper series titled “Some
Expectations of the Impact of Salary Increases on the Jordanian
Economy.” The publication aims to outline the projected economic
impact of the government’s decision to increase the salaries of civil
and military employees and retirees earning less than JD600 per month
by JD30, starting in 2027.

In its policy paper, the forum noted that the scheduled increase is a
significant step toward improving living standards and boosting
consumer spending. It explained that this demographic has a higher
marginal propensity to consume, meaning they are more likely to spend
additional income immediately on goods and services rather than
saving it.

Consequently, the JSF indicated that any rise in household income for
this segment will directly support consumer demand, particularly for
essential goods, thereby stimulating overall economic growth.

The forum concluded that the pay bump serves as a critical booster
for the purchasing power of low-income groups and acts as a lever to
stimulate domestic demand, creating a positive ripple effect
throughout national economic activity.

//Petra// AF