The dire economic situation in Lebanon has left a significant portion of the population struggling to make ends meet, with salaries that barely cover basic necessities. With the majority of Lebanese citizens now living below the poverty line and a basic food basket costing over $420 per month, the current minimum wage of around $200 is entirely insufficient.

Many economists and labor leaders believe that the minimum wage should be no less than $1,000 to align with the skyrocketing cost of living. However, the question remains: can the government led by Nawaf Salam implement wage adjustments that do not overburden the state treasury while ensuring fairness for employees whose salaries have lost substantial value?

Bechara Asmar, head of the General Confederation of Lebanese Workers, told Nidaa Al-Watan that discussions with the previous government had already begun regarding the integration of financial assistance into the core salary structure.

"A committee was formed, and Nisrine Mashmoushi was tasked with conducting a study on the minimum wage, cost of living, and the necessity of salary increases. Significant progress was made in this regard, but now, with a new government, these negotiations must be revived."

Asmar highlighted the devastating effects of stagnant wages on public sector employees, particularly concerning end-of-service compensation.

"Public sector and military employees are still receiving their benefits based on outdated salary structures from 2019, calculated at an exchange rate of 1,500 Lebanese pounds per US dollar. This is catastrophic. I have raised this issue with the Minister of Labor."

While the exact figure for the new minimum wage remains under discussion, Asmar acknowledged that even $1,000 per month may not be enough in today’s economy.

"The dollar’s real value has dropped by 35%, while prices have surged without any regulatory oversight. It is clear that salaries must be reassessed accordingly."

Negotiations are also underway for private-sector employees. Asmar revealed that discussions with economic bodies are ongoing and that a lawsuit has been filed with the State Council to uphold a nine-million-pound cost-of-living allowance, which was decreed in April 2024 but later frozen.

"We are currently waiting for the Council’s ruling," he added. The Confederation had initially proposed setting the minimum wage at 50 million Lebanese pounds, but Asmar emphasized that this figure now requires reassessment.

"There are draft laws in Parliament aimed at reassessing devalued compensations, and we have already begun reviewing them in the Parliamentary Health and Justice Committees. These compensations cover all employees who retired after 2019."

Castro Abdullah, President of the National Federation of Workers’ and Employees’ Unions, stressed the need for immediate wage corrections across both public and private sectors.

"The recent increases in public sector salaries were not genuine adjustments; they were provided as financial assistance, which does not count toward pensions or end-of-service benefits. Furthermore, contract workers and daily laborers affiliated with the public sector have no social protection, health coverage, or pension benefits. This situation must change."

Lebanese workers have suffered immensely since 2019 due to financial instability and the absence of wage adjustments. Abdullah pointed out that informal sector workers—including daily laborers, agricultural workers, freelancers, and remote workers—have been left particularly vulnerable.

"There is no set minimum wage in this sector, creating economic chaos."

He further emphasized that purchasing power has declined by nearly 97% compared to 2019, exacerbated by the depreciation of end-of-service compensations.

"Employers and employees have paid their contributions in advance, yet workers continue to bear the greatest losses."

A new concern has emerged regarding the 2017 retirement compensation law, which has left some retirees with as little as 35 million Lebanese pounds. In some cases, they are required to pay back these funds as NSSF subscription fees over two years.

"This is an unacceptable situation, and we are preparing to file a complaint against it," Abdullah said.

Various studies suggest different figures for the new minimum wage. A study by Information International proposed 70 million Lebanese pounds (approximately $700), while labor unions are advocating for a range between $800 and $1,000, considering the high cost of housing and living expenses.

"Employers have already adjusted their pricing and inventory to match the dollar rate, and many even keep their funds abroad to evade financial obligations. Yet, workers’ salaries remain stagnant," Abdullah noted.

Despite the ongoing Israeli aggression against Lebanon, labor unions insist that wage corrections cannot be delayed any further.

"We have been told repeatedly that a caretaker government cannot act. But the situation is now exceptional. We need immediate action," Abdullah urged.

If the new government fails to address wage concerns, unions are prepared to escalate their demands.

"We will take to the streets if necessary, raising our voices to demand fair wages, job security, and adherence to international labor standards," he concluded.