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COVID-19 has had devastating impact on the apparel supply chain and its workers. Globally, garment industries were affected by 30-50 percent, compared to Jordan which had 15-20 percent reduction in exports, showing the nation’s ability to adapt to the new economic context.  

In an industry which accounts for approximately 20 percent of total domestic exports, an estimated two-thirds of garment workers in Jordan still receive their wages in cash each month.  

Digital transactions could offer garment factories and workers significant benefits. Disbursing wages in cash can cost factories up to US$1,000 per month, equivalent to the monthly wages of 4.4 workers. 73 percent of Jordan’s garment workers are women, who typically have less access to financial services. Receiving wages digitally is an important step toward increasing financial account use and greater financial capability.

The Jordanian government’s commitment to a strong, inclusive digital payment system proved to be a critical asset in making a quick transition to digital service. At the onset of the pandemic, the government and financial sector worked together to make it possible to safely onboard consumers to digital banking.

In partnership with Better Work, ILO, and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, we documented the business case for responsible wage digitization in the Jordanian garment industry and how Jordan can build on this upward trend in digital infrastructure and digital transactions, to benefit from a responsible and sustainable transition to digital wages.