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The issue of raising the minimum wage is back on the table, highlighting a stark wage gap between the private and public sectors.

Despite a 95% devaluation of the Lebanese pound since October 2019, the minimum wage in the public sector remains set at 6,750,000 pounds, while it has reached 18,000,000 pounds in the private sector. This disparity not only exposes a deep imbalance but also reveals confusion and blatant injustice in the labor market.

An Abuse

The 2024 budget included salary increases for civil servants in the form of social allowances but did not integrate them into the base salary. This could be considered a major injustice, if not outright abuse, particularly for those nearing retirement. Retirement benefits for public sector employees are still calculated based on an exchange rate of 1,507.5 pounds per dollar. The 2025 budget draft only reinforces this injustice, despite the previous government under Najib Mikati pledging to pass a law granting an increase equivalent to six months' salary over the course of the year.

As for public sector retirees, their pensions do not even reach a quarter of what they earned in 2019, as they receive no productivity bonuses, transportation allowances or external financial aid.

The 9 Million in the Private Sector

Regarding the private sector, the previous government issued a decree raising the minimum wage to 18 million pounds while granting a cost-of-living allowance of 9 million pounds to each worker — affecting nearly 450,000 employees covered by the Labor Law. This decree followed an April 2024 meeting between the Price Index Committee, the Professional Syndicates Union and former Labor Minister Moustafa Bayram.

However, the payment of this cost-of-living allowance was never implemented. Employers justified this by arguing that while the state has the authority to set the minimum wage, it has no right to dictate increases in other salary brackets.

A legal challenge was submitted to the State Council which had ruled in favor of the General Confederation of Lebanese Workers.

According to a member of the economic bodies interviewed by This is Beirut, the issue of salary adjustments is expected to be addressed after the Eid al-Fitr and Easter holidays, once the situation in the country stabilizes.