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Estidama++ Fund – Formalization and Extension of Coverage

eval_number:

2365723

eval_url:

https://webapps.ilo.org/ievaldiscovery/eval/2365723

location:

country:

Jordan

region:

Arab States

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eval_title:

Estidama++ Fund – Formalization and Extension of Coverage

recommendations:

date:

2025-11-27 00:00:00.0

themes:

theme:

Social Protection

category:

Social security

---

comments:

While a holistic formalisation agenda extends beyond the Estidama++ mandate, the ILO Jordan cluster has already taken significant steps to support a coordinated national approach. A national formalisation framework and action plan has been drafted and shared with MoL, outlining systemic barriers, institutional roles, and pathways for a coordinated response to informality. The EU-MADAD–funded study Towards a Coordinated Approach to Formalisation in Jordan provides a comprehensive systems diagnosis and recommendations for R204-aligned reforms, and is being used by MoL and partners as an anchor reference for planning. A national workshop (September 2025) on formalisation and informalisation convened government, social partners, municipalities, and development partners to build consensus, identify barriers, and shape next steps. Through these activities, social security (including Estidama++ lessons) is being positioned as one of several components in a broader multi-system approach to formalisation—including regulatory simplification, coordinated enforcement, progressive pathways, and incentives—while maintaining a clear distinction between Estidama++ project boundaries and wider cluster support. Further work is planned with MoL to consolidate these processes and ensure that social protection remains integrated within national formalisation strategies in line with ILO Recommendation 204.

action_plan:

Provide technical support to the Ministry of Labour (MoL) in operationalising the national formalisation framework, including regulatory mapping, institutional coordination, and alignment with R204 principles. Contribute ILO expertise to MoL-led processes on harmonising incentives, registration pathways, and compliance systems across relevant institutions (MoL, SSC, MoITS/CCD, MoLA, ISTD). Continue contributing social protection inputs—particularly around flexible contribution models and pathways—within the broader formalisation agenda, while clarifying that these activities sit outside the core scope of Estidama++ and fall under the ILO Jordan cluster’s complementary work on decent work and social protection. Support the organisation of further technical consultations and national workshops to refine the formalisation framework and action plan, building on the 2025 national workshop on formalisation and informalisation. Provide continued analytical and diagnostic inputs to MoL—including data, policy options, and lessons from Estidama++—to ensure social security is effectively integrated into multisectoral formalisation strategies.

management_response:

Partially Completed

progress:

Partially achieved

admin_units:

RO-Arab States/DWT-Beirut

title:

Recommendation 2: Incorporate social security coverage efforts into larger, more holistic support to address informality, as aligned with ILO Recommendation 204. The lack of coverage by social security schemes is a consequence of informal employment and self-employment. As described in Recommendation 204, supporting the transition to formality requires a multifaceted approach, which goes beyond the social security sector. Various factors affect transition to formality which need to be addressed holistically in order to provide a more substantive response to informality. For example, informality is linked to social security, the business registration system, the tax system, access to finance and export opportunities, trade union representation, contribution capacity, general awareness, and the capacity of the government to link all these components together. The ESTIDAMA++ project serves as important pilot to understand the barriers to formality that are created in the context of social security. The results provide valuable insights for future work in this area. At the same time, future initiatives should combine continued support to the social security system with additional, broader efforts targeting the informal sector, aligned with Recommendation 204. These include among others: - Create a working group on informality that includes all ministries, social partners, and other core partners to align efforts made in different areas (tax, social security, registration, trade union representation, etc.) and ensure that systems related to formality are linked. - Integrate social security into broader strategies to create a holistic approach to informality, aligned with Recommendation 204. - Ensure that business registration is as simplified as possible and sufficient guiding materials are available (online) to guide the process. - Explore incentives for employers to register their employees, as well as deterrents for misuse of contribution support.

project_symbols:

JOR/20/04/MUL

url:

https://webapps.ilo.org/ievaldiscovery/recommendations/2365817

information_source:

Country Office

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