Currency
Lebanese Pound (LBP)
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A guide to employing and growing your team in Lebanon
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Lebanon’s labor market is governed by the Labor Law of 1946 and subsequent decrees from the Ministry of Labor. The system has seen significant adjustments in 2025 and 2026 to account for currency volatility. As of April 2026, the national minimum wage is LBP 28,000,000 per month (approximately USD 313 at current market rates). The standard work week is 48 hours (8 hours per day over 6 days), with overtime compensated at 150% of the regular hourly rate.
Employer Contributions
End-of-Service Compensation: 8.50% (Calculated on the total salary)
Maternity & Sickness Fund: 8.00% (Capped at LBP 90,000,000 monthly)
Family Allowance Fund: 6.00% (Capped at LBP 12,000,000 monthly)
Total Employer Contribution: 22.50%
Employee Payroll Taxes
Maternity & Sickness Fund: 3.00% (Capped at LBP 90,000,000 monthly)
Income Tax Withholding: Variable (Based on progressive brackets)
Total Employee Contribution: 3.00%
Employee Income Tax Rates
Lebanon uses a progressive tax system with brackets that were significantly expanded in the 2024 and 2025 Budget Laws to reflect the devalued currency.
Up to LBP 360,000,000: 2%
LBP 360,000,001 – LBP 900,000,000: 4%
LBP 900,000,001 – LBP 1,800,000,000: 7%
LBP 1,800,000,001 – LBP 3,600,000,000: 11%
LBP 3,600,000,001 – LBP 7,200,000,000: 15%
LBP 7,200,000,001 – LBP 13,500,000,000: 20%
Above LBP 13,500,000,000: 25%
Statutory Leave
Employees are entitled to 15 days of paid annual leave after one year of service. This increases based on tenure: 17 days after 5 years, 19 days after 10 years, and 21 days after 15 years. Lebanon observes approximately 15 to 20 public holidays depending on regional and religious observances.
Pregnancy and Maternity Leave
Mothers are entitled to 10 weeks of fully paid maternity leave, which includes the period before and after delivery. To qualify, the employee must have been with the employer for at least one year. Employers are prohibited from dismissing a woman during her maternity leave.
Paternity Leave
As of 2026, fathers are entitled to 3 days of paid paternity leave. While some recent legislative discussions suggested a combined parental leave of up to 10 weeks, the current recognized statutory paternity period remains 3 days for private-sector employees.
Work-Related Injury Leave
Sick Leave: Paid sick leave is tiered by seniority: 30 days at full pay (for service 10 years).
Marriage Leave: 2 days of paid leave.
Bereavement: 2 days for the death of an immediate family member.
Termination Process
Termination of an indefinite contract requires a written notice. If a dismissal is deemed “abusive” (without valid technical or disciplinary cause), a court may order the employer to pay additional compensation ranging from 2 to 12 months’ salary, on top of the standard end-of-service benefits.
Notice Period
The notice period is determined by the employee’s length of service:
Less than 3 years: 1 month
3 to 6 years: 2 months
6 to 12 years: 3 months
More than 12 years: 4 months
The same periods apply to employees wishing to resign.
Probation Period
The maximum probation period is 3 months. This period is non-extendable and must be clearly stated in the employment contract. During these 3 months, either party may terminate the relationship immediately without notice or severance pay.