Lebanon Eyes Minimum Wage Hike as Economic Crisis Deepens

Lebanon’s worsening economic crisis continues to take a heavy toll on its people. Soaring inflation and rising costs across every sector have only added to daily hardships, placing the country’s wage system under increasing pressure. As the cost of living climbs and purchasing power erodes, calls to adjust salaries have become impossible for the government to ignore.

The wage issue resurfaced recently after the Index Committee convened to review private sector pay. The meeting reignited debate over whether current salaries reflect the economic realities of Lebanon’s struggling industries.

Anis Bou Diab, President of the Economic, Social, and Environmental Council, described the atmosphere of the meetings as “very positive,” noting that the talks revolve around a negotiated agreement between the main stakeholders — with the government stepping in as a facilitator. On one side are Lebanon’s powerful and financially equipped economic bodies. On the other is the General Confederation of Lebanese Workers, which holds significantly less bargaining power.

“Everyone is alarmed by the skyrocketing cost of living,” Bou Diab told Kataeb.org. “The business community understands the difficulties people are facing — especially workers and vulnerable groups. They also recognize that boosting wages and purchasing power drives consumer spending, which ultimately benefits their own businesses.”

While employers are generally open to raising wages, Bou Diab emphasized that any adjustments must align with what businesses can realistically afford.

“It’s about balancing the General Confederation’s high and justified demands with the limited resources of the economic sector,” he said.

To strike that balance, the Council is overseeing a round of intensive negotiations aimed at reaching an agreement by April 28. The goal: to raise the national minimum wage and improve salary supplements, including family allowances, education grants, and healthcare benefits.

As for the scale of the proposed wage hike, Bou Diab said the figures are still under review.

“The basic consumption basket for a family of four is currently valued at around 50 million Lebanese pounds. That has to be the starting point,” he said. “But we also have to consider the financial capacity of businesses, especially in a post-war context.”

He stressed that any wage strategy must consider Lebanon’s full geographic and socioeconomic landscape.

“Lebanon isn’t just Mount Lebanon and Beirut,” he said. “We have nine governorates, including Baalbek-Hermel, the South, and the southern suburbs of Beirut — many of which have seen widespread devastation. In some of these areas, 40 to 50 percent of businesses are shut down. We need to help the private sector get back on its feet if we’re serious about improving wages.”

Employers, he added, are well aware of the toll the crisis has taken on workers.

Looking ahead, Bou Diab expressed cautious optimism that an agreement will be reached by the April 28 deadline. But more than just a one-off fix, he emphasized the importance of establishing long-term policies on minimum wage standards and holding regular meetings between labor unions and economic bodies to ensure worker protections and economic sustainability.
 
 This is an English adaptation of an Arabic article by Julie Majdalani.