Lebanon public sector wage and allowance adjustments

Lebanese officials have begun addressing the economic demands of public sector workers following discussions between Labor Minister Mohammad Haidar and the Public Administration Employees Association. The initial talks focused on the cost of living and transportation allowances, with the Minister emphasizing the need for sustainable solutions that balance worker rights with the state’s financial stability.

Following these discussions, the Lebanese Cabinet approved specific adjustments to wages and allowances to combat the erosion of purchasing power. New regulations set a daily attendance allowance equivalent to five liters of gasoline, ranging between 500,000 and 800,000 Lebanese pounds. The Cabinet also amended family allowances, setting rates for spouses and dependent children, with retroactive payments scheduled to begin in October 2026.

While these measures aim to support employees, the Cabinet rejected a proposal to suspend certain gasoline fees. Economic experts have cautioned that such nominal wage increases, absent real economic growth, could potentially trigger a “wage-price spiral” and further currency devaluation.