Minister of Labor Mohammad Haidar announced on Wednesday an immediate increase in the minimum wage for private sector employees, raising it to LBP 28 million, approximately $320 at the prevailing unofficial exchange rate.
The increase, which represents more than a 50% hike, is the first step in a broader wage correction plan as Lebanon continues to grapple with a protracted economic crisis.
The decision followed a meeting of the Price Index Committee at the Ministry of Labor, attended by representatives from trade unions, employers, the National Social Security Fund, the Ministries of Finance and Labor, the National Institute of Statistics and economic experts.
In addition to the wage increase, the plan includes a doubling of family allowances and a 2.5-fold increase in school grants. Transport allowances will remain unchanged. The proposal will be submitted to the Cabinet for final approval.
“This is a starting point,” Haidar said, outlining a two-phase roadmap that includes bi-monthly assessments and a broader review in December, aligned with the 2026 budget planning process. He emphasized that the long-term objective is to develop a sustainable salary structure for both the public and private sectors.
While members of the economic committee supported the measure, labor unions expressed concern over the absence of an immediate adjustment reflecting the cost-of-living index.
“I’d rather act now with what’s possible than wait indefinitely,” Haidar stated. “It’s not enough, but it’s a breath of fresh air. I’m not here to sell slogans, I want results.”
The minister stressed the need for reforms to be gradual, realistic and aligned with the country’s economic and fiscal capacities.
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