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Public sector salary increase tops cabinet agenda on Tuesday
News Bulletin Reports
2023-04-17 | 08:34
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Public sector salary increase tops cabinet agenda on Tuesday
Improving public sector salaries tops the agenda for Tuesday's cabinet meeting. The proposed formula suggests giving three additional salaries to retired individuals, in addition to the three they currently receive. For active public sector employees, the proposal suggests giving three or four additional salaries, in addition to their current salary. The formula, which has not yet been finalized, proposes giving between 400,000 to 500,000 Lebanese pounds as transportation allowance for active employees.
The proposed salaries would be paid at the current exchange rate of around 87,000 Lebanese pounds to the dollar. For example, if an employee's base salary is two million pounds and they currently receive three times that amount, or six million pounds, their new salary would be 12 million pounds, including three additional salaries. This amounts to approximately $137, not including other allowances and transportation benefits.
Sources suggest that measures will be implemented to secure the revenue for these salary increases, such as raising the customs dollar rate to 60,000 and resuming the operation of the "Nafaa" system. All of these revenues will be in Lebanese pounds, while public sector salaries will be withdrawn in dollars through the exchange platform. This will push the Central Bank to secure them from the black market, leading to an increase in the exchange rate of the dollar, and creating a cycle that can only be ended by implementing reforms.
So far, this formula is leading over other proposals, such as giving production allowances of $300 for the first category of employees, $250 for the second, and $200 for the third. This would be added to their current salary, along with five liters of fuel per day. Sources say this proposal is unlikely to be approved due to its high cost.
In addition to these developments, concerned sources are discussing the possibility of approving a 500 billion pound allocation for the State Employees Cooperative to cover medical expenses.
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