Lebanon Payroll Outsourcing Alert

Cost-of-living allowance introduced and new amendments to sickness, maternity and family allowances.

On May 19, 2022, the Lebanon Ministry of Finance issued a decree that introduced a mandatory cost-of-living allowance, subject to the following terms:

• Employees with monthly salaries not exceeding LBP 4,000,000 are eligible for monthly mandatory cost-of-living allowances of LBP 1,325,000.
• Employees with daily salaries not exceeding LGB 182,000 (LGP 4,000,000 over 22 working days) are eligible for a daily cost of living allowance of LBP 61,000.
• Cost-of-living allowance is subject to the employee and employer social security contribution.
• The decree went into effect on 1 April 2022.

As a result of this decree, the NSSF has updated the ceiling limits for Sickness, Maternity and Family allowances as per below:

• Sickness and Maternity allowance: monthly ceiling increased from 2,500,000 LBP to 3,825,000 LBP. The maximum contributions have been amended as follows:
  • Employee (3%): Increased from 75,000 LBP to 114,750 LBP
  • Employer (8%): Increased from 200,000 LBP to 306,000 LBP
• Family allowance: monthly ceiling increased from 1,500,000 LBP to 2,825,000 LBP. The maximum contribution has been amended as follows:
  • Employer (6%): Increased from 90,000 LBP to 169,500 LBP

The ceiling amendments are also effective from 1 April.