Lebanon Cabinet approves wage and family allowance adjustments

The Lebanese Cabinet has approved several measures to address the erosion of purchasing power amid the country's ongoing financial and monetary crisis. New regulations will adjust the daily attendance allowance for employees, setting it at a value equivalent to five liters of gasoline per day, with a minimum of 500,000 Lebanese pounds and a maximum of 800,000 Lebanese pounds. This calculation will be based on the official average price of gasoline.

Additionally, the Cabinet signed a decree to amend family allowances. Effective March 1, 2026, the allowance for a spouse will be 2,100,000 Lebanese pounds, and the allowance for each dependent child will be 1,160,000 Lebanese pounds, with a total cap of 5,800,000 Lebanese pounds for children. Retroactive differences for the period between March 1 and September 30, 2026, will be paid starting October 1, 2026.

Despite these adjustments, the Council rejected a proposal from Energy Minister Jou Mana to cancel or suspend the 300,000 Lebanese pound fee included in the price of gasoline. Economic experts warn that increasing nominal wages without real economic growth or monetary stability may trigger a wage-price spiral, potentially fueling inflation and further devaluing the currency.