Lebanon’s Cabinet on Monday approved payments of six additional monthly salaries for public sector employees and retirees, part of a broader fiscal package that includes tax hikes and increased fees to offset the cost.

The supplementary payments, which will not be incorporated into base salaries, will range from $120 to $200 per month depending on rank. About 251,000 public employees and retirees are expected to benefit, along with 1,690 new teaching positions at the Lebanese University.

The government estimates the total cost of the salary measures at roughly $800 million, insisting that new revenue streams are essential to fund them.

However, Information Minister Paul Morcos said the six-month salary payments will only be disbursed after Parliament approves the necessary legislation.

For the first time in eight years, the Cabinet will also submit to Parliament a draft law to raise the value-added tax (VAT) from 11 percent to 12 percent. Budget projections for 2026 suggest that the additional point could generate about $208 million annually, revenue officials say could be collected immediately.

In parallel, the Cabinet approved decrees taking immediate effect, including a 300,000 Lebanese pound increase on every 20 liters of gasoline and higher container fees, set at $50 for a 20-foot container and $80 for a 40-foot container.

The government made it clear that any salary increases or new hires requiring additional spending will be matched by financial measures to secure corresponding revenue.

University professors have been pushing for a 37-fold salary increase. Administrative staff, along with retired military and civilian personnel, were told during 2026 budget discussions that their pay would be restored to 50 percent of its 2019 level, with the remaining gap filled in 10 percent increments every six months. The plan aims to fully compensate for losses stemming from the country’s monetary and banking collapse by 2028.