With protests intensifying among members of the military and security forces, Lebanon’s government on Tuesday approved a decision to raise the salaries of public sector employees to nearly $92 a month. 

Caretaker Minister of Information Ziad Makary said at the end of the Cabinet session that the public sector monthly minimum wage has been increased fourfold to reach 9 million Lebanese pounds (around $92 at the black market rate), from 2.6 million Lebanese pounds (about $27). On Wednesday, the black market exchange rate reached 97,300 Lebanese pounds for one dollar. 

However, the wage increase, which will go into effect on May 1, was capped at a total of 50 million Lebanese pounds (around $513) a month and no less than 8 million Lebanese pounds ($82).

The cash-strapped country has been struggling to cope with a debilitating economic and financial crisis since October 2019. The Lebanese pound has lost more than 90% of its value since the start of the crisis, while hard currency has been scarce. Banks, meanwhile, have been imposing informal capital controls and limiting cash withdrawals.

“We are here to discuss the demands raised, which are mostly justified, to issue a decision based on the available resources at the treasury,” caretaker Prime Minister Najib Mikati said at the beginning of Tuesday’s session.

The Cabinet decision also approved three additional salaries for retired civil servants who have been protesting for weeks demanding an increase in their pensions amid the rising cost of living.

As the Cabinet was meeting at its headquarters in the capital, Beirut, hundreds of retired military personnel protested outside the government building.

The protest, which started out peaceful, quickly turned violent after some protesters broke down the barbed wire fence near the government building while others burned tires and hurled stones at the security forces guarding the building. Riot police fired tear gas at the crowds in an attempt to disburse them. Some protesters reported breathing problems.

Civil servants in Lebanon are also demanding partial dollarization of their wages and pensions, as some of them are earning as low as $50 per month.

Prices of goods and other basic commodities are skyrocketing, and many institutions and supermarkets have started dollarizing their prices. While the official rate is set at 15,000 Lebanese pounds to the dollar, the black market rate — which is currently hovering around 97,400 Lebanese pounds to the dollar — is used in most transactions across the country. The situation has sent poverty rates soaring and left around 2 million people facing food insecurity, according to UN agencies.

Meanwhile, the political elite that has been ruling the country since the end of the civil war in the 1990s has failed to address the economic crisis. Talks with the International Monetary Fund on an aid package, which is seen as the only alternative to help the cash-strapped country deal with its collapsing economy, have stalled for months as politicians exchange accusations over the scale of total financial losses.

This situation has pushed the country’s military and security institutions to rely on aid from international donors.

On Tuesday, the US Embassy in Beirut and the United Nations Development Program (UNDP) began disbursing cash payments to the Internal Security Forces (ISF) — Lebanon’s police force.

The cash distributions are part of the joint UNDP and US Embassy “Livelihood Support Program,” launched in January to support the country’s military and police forces.

The first tranche of the program is valued at $16.5 million and includes the disbursement of $100 per month for eligible ISF members for a period of six months, according to a statement by the US Embassy published earlier this week.

“The Lebanese Armed Forces will benefit from this US-sponsored, UNDP-implemented program, with initial disbursements beginning very soon,” the statement added.

Washington has for years backed the Lebanese army as part of efforts to boost its capacities to counter internal and external threats.

“Since 2006, US investments of more than $3 billion to the LAF [army] enabled the Lebanese military to be a stabilizing force against regional threats,” according to the State Department website.

Since the 2019 financial collapse, the United States has increased its aid to the army. In January, the State Department notified Congress of its plan to reroute $67 million of military assistance for Lebanon to include “livelihood support” to soldiers. In September 2021, US President Joe Biden allocated $50 million in aid to the Lebanese army.

The army also received a $60 million financial grant from Qatar in June last year that was paid in six installments.