Increase in wage and transport allowance approved for private sector

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As expected, the Index Committee, consisting of the Ministry of Labor, economic agencies, and the General Labor Union, approved raising the minimum wage in the private sector from LBP 2,600,000 to 4,500,000.

It also approved Increasing the value of the daily transport allowance from LBP 95,000 to LBP 125,000 and doubling family compensation three times from what it was, i.e., LBP 180,000 for the wife instead of 60,000, and LBP 100,000 for each child instead of 33,000.

In addition to doubling scholarships three times, i.e., LBP 3 million instead of one million annually for each student in public school or university, and LBP 6 million instead of two million pounds annually for each student in private school or university. Moreover, it approved the inclusion of scholarships for three children instead of two.

However, the end-of-service compensation, which value has eroded with the currency's deterioration, is another significant issue that affects employees in the private sector.

Therefore, to protect employees, the Index Committee agreed to ask the National Social Security Fund (NSSF) to mandate retirement pensions rather than end-of-service pay.

All of these increases require government decrees, which raises the question of whether or not they will be implemented in light of the current political controversy over the constitutionality of cabinet meetings.

Indeed, these raises have currently been approved for employees in the private sector. Still, Caretaker Labor Minister Moustafa Bayram emphasized that work is ongoing to extend these raises to those in the public sector as well.

The agreed increases are undoubtedly insufficient, especially given that the General Labor Union has proposed a minimum wage of LBP 20 million. Still, there are constraints on what can be done, and the economic situation prevents it.

However, experts believe this figure is a high ceiling and could result in the closure of many institutions. Thus, these increases represent a compromise.