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Cost-of-living allowance introduced and new amendments to sickness, maternity and family allowances.
On May 19, 2022, the Lebanon Ministry of Finance issued a decree that introduced a mandatory cost-of-living allowance, subject to the following terms:
- Employees with monthly salaries not exceeding LBP 4,000,000 are eligible for monthly mandatory cost-of-living allowances of LBP 1,325,000.
- Employees with daily salaries not exceeding LGB 182,000 (LGP 4,000,000 over 22 working days) are eligible for a daily cost of living allowance of LBP 61,000.
- Cost-of-living allowance is subject to the employee and employer social security contribution.
- The decree went into effect on 1 April 2022.
As a result of this decree, the NSSF has updated the ceiling limits for Sickness, Maternity and Family allowances as per below:
- Sickness and Maternity allowance: monthly ceiling increased from 2,500,000 LBP to 3,825,000 LBP. The maximum contributions have been amended as follows:
- Employee (3%): Increased from 75,000 LBP to 114,750 LBP
- Employer (8%): Increased from 200,000 LBP to 306,000 LBP
- Family allowance: monthly ceiling increased from 1,500,000 LBP to 2,825,000 LBP. The maximum contribution has been amended as follows:
- Employer (6%): Increased from 90,000 LBP to 169,500 LBP
The ceiling amendments are also effective from 1 April.
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Lebanon Statutory Alert -22 June 2022
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