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3. Salam Publishes Three Laws That Mikati Requested to Be Rejected

Prime Minister Nawaf Salam requested the publication of three laws in the Official Gazette. Former Prime Minister Najib Mikati had previously demanded that these laws be sent back to Parliament for reconsideration.

One law is related to the teaching staff in private schools and the regulation of the school budget. The second law is about granting financial assistance to the compensation fund for private school teaching staff (valued at LBP 650 billion). The third law is about amending the rent law for non-residential premises.

These three laws were enacted a year and three months ago, but were not published in the Official Gazette under Mikati’s administration. At the time, both the Landlords’ Syndicate and the Teachers’ Syndicate rejected them and filed legal challenges before the State Council to annul the related decrees.

What are the key points of these three laws?

1. The Law on Private School Teaching Staff, School Budget Regulation

•     Increasing the schools’ contribution to the Compensation Fund to 8% of total salaries and benefits paid to teachers in all currencies.

•     Allocating up to 2% of the Compensation Fund's capital to the Pension Fund, based on a board decision.

•     Covering retirement benefits and pensions from deductions and contributions paid into the Compensation Fund.

•     Private schools cannot finalize their annual budgets unless they obtain financial clearance from the Compensation Fund, proving that they have settled all dues for teaching staff.

2. The Law on the Financial Assistance to the Compensation Fund

•     Allocating LBP 650 billion in financial assistance to the Compensation Fund for private school teachers to address its financial deficit.

•     Including this amount in the Ministry of Education’s 2026 budget to support the fund.

•     Distributing the financial aid between the Compensation Fund and the Pension Fund according to their financial needs.

•     Aiming to balance the pensions of private school retirees with those of public sector teachers and ensure they receive a minimum standard of living.

•     Applying the same laws and decrees issued for public sector retirees to private school teaching staff under the retirement system.

3. The New Rent Law for Non-Residential Premises in Lebanon

•     Applies to non-residential lease agreements that expired before July 23, 1992, whether the tenants are individuals, institutions or the state.

•     Extends lease contracts for either two years if the landlord waives their right to rent increases or four years if the landlord demands gradual increases.

•     Determines rent based on 8% of the estimated market value of the property.

•     Specifies gradual rent increases as follows: 25% of the difference in the first year, 50% of the difference in the second year. In the third and fourth years, the rent is adjusted to match the estimated market value. After the fourth year, rent will be subject to market demand and supply.

Prime Minister Nawaf Salam decided to publish these laws in this week’s Official Gazette following a report from the State Council annulling Mikati’s rejection decrees.

However, Salam’s decision has sparked significant controversy among opposing parties.

The rent law, in particular, has reignited disputes between the Landlords’ Syndicate and Tenants’ Committee.

Similarly, the education laws have caused tensions between the Teachers’ Syndicate and the Federation of Educational Institutions.