Jordan's King Abdullah on Tuesday dismissed his cabinet and asked his former military adviser Marouf Al Bakhit to form a new cabinet.
"King Abdullah II designated Marouf Al Bakhit to form a new government to replace the government of Samir Rifai,
Demonstrators inspired by mass protests in Tunisia and Egypt had called for Rifai's dismissal.
Under fire from an enraged public over high food prices, Rifai announced wage increases two weeks ago to civil servants and the military in an attempt to restore calm.
Protests have spread across Jordan in the last few weeks, with demonstrators blaming corruption spawned by free-market reforms for the plight of the country.
Several Jordanians hold successive governments responsible for a prolonged recession and rising public debt that hit a record $15 billion this year in one of the Arab world's smallest economies, heavily dependent on foreign aid.