With the election of a president, the formation of a new government, and a wave of optimism across various sectors, calls to revisit the issue of minimum wage hikes and public sector salary adjustments have resurfaced. Demands to place these issues on the Cabinet’s agenda as a priority have grown louder.

While many acknowledge the legitimacy of the demands, concerns persist over their potential impact on Lebanon’s fragile exchange rate stability. On one side, workers, employees, and retirees are preparing to reignite their movement and take to the streets if the government fails to address their grievances. On the other, policymakers fear the financial repercussions of any salary adjustments, given the state’s limited resources.

Former president of the Public Administration Employees Association, Nawal Nasr, told Annahar that the association is preparing to mobilize once again, noting that a salary adjustment plan promised by the previous government for June had yet to materialize.

“What public sector employees currently earn does not align with the rising inflation and cost of living in Lebanon,” Nasr said, as she also highlighted additional grievances, particularly the loss of severance pay received by some employees due to the depreciation of the local currency.

Nasr further called for integrating performance-based bonuses into the base salary, arguing that their discretionary application has led to inconsistencies, with some employees receiving incentives based on the subjective decisions of their superiors.

Lebanon currently pays approximately 300,000 public sector and military salaries, totaling around $150 million per month. The Lebanese Central Bank secures most of these funds from the local market or through investment returns. However, labor and retiree representatives are pushing for a substantial increase in the minimum wage—by up to two and a half times—raising it to between $450 and $600. This could push the government’s monthly salary bill to roughly $350 million, an amount central bank officials consider unsustainable.

Government and parliamentary sources warn that implementing such an increase poses serious risks to Lebanon’s exchange rate stability and foreign currency reserves. Faced with these challenges, trade unions are urging state officials, economic bodies, and labor representatives to convene under the Ministry of Labor’s supervision to negotiate a compromise. They advocate for a balanced approach that considers both workers’ humanitarian needs and the financial limitations of the government and private sector.

Officials engaged in the wage debate have suggested raising the minimum wage to $300. Currently set at 18 million Lebanese pounds (approximately $200), this increase would bring it to 27 million pounds ($300). Such an adjustment would also trigger automatic increases in employee bonuses.

A draft law under discussion proposes eliminating discretionary benefits, such as productivity and performance-related bonuses, starting in 2026. Instead, salaries would be calculated at 22 times their 2019 levels, up from the current multiplier of 13. This reform aims to standardize salary structures, ensuring that future compensation calculations reflect more equitable adjustments.

In the interim, the government may gradually increase public sector salaries from 13 times their 2019 levels to 18 times by mid-2025, depending on revenue performance. Official sources told Annahar that treasury revenues in January 2025 had reached approximately $450 million, partly due to the presidential election and the settlement of value-added tax (VAT) payments for the last quarter of 2024.

Wage Disparities: Then and Now

Before Lebanon’s financial crisis in 2019, salaries in the military and public administration sectors were significantly higher than they are today. Current wages reflect a drastic decline in real income due to the economic downturn and currency devaluation.

Military Personnel:

• A serving brigadier general earned $4,500 and received 20 liters of fuel per month before the crisis. Today, they earn about $1,000 with allowances, plus the same fuel provision, equating to roughly 27% of their pre-crisis salary.
• A retired brigadier general previously earned $4,000 and 20 liters of fuel but now receives approximately $900 with the same fuel benefit.
• Soldiers who earned around $950 before the crisis now receive about 33 million Lebanese pounds (roughly $375) plus a $100 aid package from Qatar, which is off-budget and not a permanent measure.
• A retired sergeant major, who once earned about $1,200, now receives around 25 million pounds, or approximately $280.

Public Administration Employees:

• A director-general’s salary was $6,000 before the crisis. Today, their base salary is about $700, with performance bonuses bringing their total earnings to around $1,500.
• A second-class employee, who previously earned $3,500, now receives roughly $1,150 with allowances.
• A third-class employee, who used to earn around $2,500, now has a base salary of $350, increasing to approximately $900 with transportation and productivity incentives.