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Global Payroll Team
Written by Global Payroll Team
Last updated May 1, 2026
Expert Reviewed
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Mercans offers complete payroll, PEO and HR services in Lebanon

Strategically located on the eastern Mediterranean, Lebanon remains a gateway between the Middle East, Europe and North Africa. The country offers a skilled multilingual workforce and a private-sector driven economy, although employers should plan carefully for the continuing effects of the economic crisis, exchange-rate volatility and a still-sensitive security environment.

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Doing Business in Lebanon

Lebanon remains an open, service-oriented market with established activity in trade, tourism, financial services, food processing, healthcare and technology. IDAL (Invest in Lebanon) continues to promote investment incentives for eligible projects. At the same time, businesses should factor in ongoing macroeconomic pressure, currency fluctuations, banking constraints and periodic security disruptions when planning operations in the country.

Entity Registration and Incorporation Requirements

Businesses may operate in Lebanon through several legal forms, including joint stock companies, limited liability companies, branches and representative offices, depending on the nature of the planned activity.

Banking

Banking hours vary by institution. Many banks operate from Monday to Friday, usually during morning and early afternoon business hours.

Working Week

Normal working time is commonly 40 hours per week, while the legal maximum working time generally must not exceed 48 hours per week except where specific rules apply.

Labor Law

Lebanese labor law generally applies to private sector employees and employers, with notable exclusions including domestic workers, agricultural workers, enterprises limited to family members and public sector employees.

Main Industries

Services, trade, tourism, financial services, food processing, healthcare, technology

GDP Growth

-7.1%

Dates & Numbers

dd/mm/yyyy

Official State Name

Republic of Lebanon

Population

5.81 million

Capital

Beirut

Major Languages

Arabic, French, English

Currency

Lebanese pound (LBP)

Internet Domain

.lb

International Dialing Code

+961

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Lebanon
Beirut, LB
2:11 pm, May 2, 2026
23°C
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62 %
Wind Gust: 4 mph
Clouds: 62%
Sunrise: 5:48 am
Sunset: 7:21 pm

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Payroll

Wages are set by the employment agreement and employees paid on a monthly basis must generally be paid at least once a month. Employers should also ensure payroll and tax reporting are aligned with current Ministry of Finance and NSSF requirements.

It is acceptable to provide employees with online payslips

Payslip

Accounting books and supporting documentation should be kept for 10 years

Reports

Employees are entitled to at least 15 working days of paid annual leave after one year of service

Annual Leave

Paid sick leave starts at 15 days on full pay plus 15 days on half pay, increasing with service length

Sick Leave

Employees are entitled to 10 weeks of paid maternity leave; paternity leave is commonly addressed by employer policy

Maternity & Paternity Leave

Notice of termination generally ranges from 1 to 4 months depending on length of service

Employee Termination

There are no provisions mandated by law regarding the 13th month salary

13th month salary

28,000,000 LBP per month

Minimum Wage

Overtime payment is generally calculated at 1.5x the employee’s ordinary rate of pay

Overtime

End-of-service indemnity is funded through NSSF, while additional compensation may apply in abusive dismissal cases

Severance Pay

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Tax and Social Security

Tax is levied on resident and non-resident taxpayers under Lebanese tax law. The NSSF administers social security contributions, including sickness and maternity, family allowances and end-of-service indemnity. Employers must register eligible employees and remit contributions and filings in line with current requirements.

Tax

Corporate income tax is levied on taxable profits, while employment income is subject to progressive personal income tax withholding. VAT applies to most taxable supplies unless specifically exempt or zero-rated.

17%

Corporate Income Tax

25%

Personal Income Tax

11%

Sales Tax

11%

VAT

Social Security

The NSSF provides coverage for sickness and maternity, family allowances and end-of-service indemnity. Current standard contributions are split between employer and employee, with ceilings applying to some branches and no ceiling applying to end-of-service indemnity contributions.

22%

Social Security Rate

19%

Social Security Rate for Employers

3%

Social Security Rate for Employees

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Employment Law

Labor law provisions generally require employment terms to be documented clearly. In practice, contracts are commonly issued in Arabic or bilingually, and employment relationships without a written fixed term contract are usually treated as indefinite term arrangements.

Employment Agreement

Employment agreements should state the names of the employer and employee, the start date, job title, duties, workplace, wage, working time and other key terms and conditions applicable to the role.

Working condition

Any hours worked beyond statutory limits are treated as overtime. Employees are generally entitled to a daily rest break, and specific rules may apply in factories, workshops and shift-based operations.

Leaves

Employees become entitled to paid annual leave after one year of service, with entitlement increasing according to seniority. Additional statutory leave includes sick leave, maternity leave and certain special leaves provided under Lebanese labor law.

Employment termination

Termination by the employer generally requires valid grounds and compliance with the applicable notice period. In abusive dismissal cases, courts may award compensation, while end-of-service indemnity rights are administered through the NSSF system.

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1 to 4 months

Minimum notice period for terminating an employee

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Varies annually

Total number of public holidays

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48

Working hours per week

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2 days

Total number of days for Compassionate & Bereavement Leave

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Immigration

A foreign worker who wishes to work in Lebanon is generally required to obtain prior approval, a work permit and the relevant residence authorization through the Ministry of Labor and the General Directorate of General Security.

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Residency permits

Residence authorization in Lebanon depends on the applicant’s category and legal basis for stay. Annual residence is commonly issued for foreign workers, while some categories may qualify for longer-term residence, subject to eligibility and renewal requirements.

Work Permit Validity

1 year

Required Documents

Valid passport

Employer appointment letter or employment contract

Proof of payment of the relevant fee

Residence or visa documentation, where applicable

Passport-size photographs

Medical insurance or other supporting documents, if required

Supporting corporate documents from the sponsoring employer

Any additional documents requested by the Ministry of Labor or General Security

Birth or civil status documents may be required in specific cases.

Compliant, reliable, error-free and touchless payroll in Lebanon

Build the best team and hire top talent compliantly in Lebanon. Get in touch with Lebanon payroll outsourcing & PEO specialists for a free consultation!

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
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    FAQs

    What is an Employer of Record (EOR) in Lebanon and how does it work for foreign companies?

    An Employer of Record in Lebanon, provided by Mercans, acts as the legal employer for your workforce in the country. Mercans manages employment contracts, payroll processing, benefits, and compliance with Lebanese labor regulations, allowing international businesses to hire employees locally without setting up a legal entity.

    Why should businesses use an EOR instead of establishing a local entity in Lebanon?

    Using Mercans as your EOR in Lebanon saves time and cost by removing the need for local company registration. It ensures immediate compliance with Lebanese employment and tax laws, simplifies HR administration, and allows your business to focus on operations while Mercans handles employment and payroll obligations.

    How does payroll outsourcing in Lebanon ensure compliance with tax and labor regulations?

    Mercans ensures payroll accuracy and compliance by managing salaries, statutory deductions, and social contributions according to Lebanese labor and tax regulations. All payroll processes are regularly updated to reflect current legal requirements, helping companies maintain full compliance.

    Can an Employer of Record in Lebanon hire employees and manage work permits for international companies?

    Yes. Mercans can hire employees on behalf of international businesses and assist with all visa and work permit requirements for foreign nationals. This ensures compliant employment of both local and expatriate staff without the need to establish a legal entity.

    What are the main benefits of using EOR and payroll services in Lebanon for global expansion?

    Mercans provides fast access to the Lebanese market, full compliance with employment and tax laws, reduced administrative burden, expert payroll and HR support, and flexible scalability for businesses expanding across borders.

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