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On March 19, 2024, the Index Committee at the Ministry of Labor approved increasing the minimum wage from LBP 9 million to LBP 18 million per month, with the consent of economic bodies and the General Confederation of Lebanese Workers.
Following this, the Ministry drafted a decree to implement the wage increase and submitted it to the State Council for review before presenting it to the Cabinet. The State Council, chaired by Judge Fadi Elias, approved the proposal to raise the minimum wage to LBP 18 million and to provide a cost-of-living adjustment of LBP 9 million effective April 1, 2024. The decree was then forwarded to the Cabinet.
On April 5, 2024, the Cabinet reviewed Decree No. 13164. While the government approved the increase of the minimum wage to LBP 18 million, it rejected the LBP 9 million cost-of-living adjustment. Consequently, the Cabinet issued a revised decree that only included the wage increase, diverging from the original agreement reached by the Index Committee.
Bechara al-Asmar, President of the General Confederation of Lebanese Workers, confirms that Decree No. 13164, dated April 5, 2024, which was prepared by the Ministry of Labor and approved by the State Council, resulted from an agreement between economic bodies and the confederation. This agreement was made with the participation of caretaker Minister of Labor Moustafa Bayram. The decree had two main provisions: increasing the official minimum wage for employees and workers covered by the Labor Law from LBP 9 million to LBP 18 million, and introducing a cost-of-living adjustment of LBP 9 million for all public sector employees. This decree affects approximately 450,000 workers affiliated with the National Social Security Fund (NSSF).
Al-Asmar emphasizes that the government’s decision to retain the wage increase while eliminating the cost-of-living adjustment has significant implications for the approximately 450,000 workers covered by the Labor Law, as it impacts their base salaries. He also notes that removing the cost-of-living adjustment adversely affects end-of-service benefits for these workers.
In response, the General Confederation of Lebanese Workers and its President held several meetings with caretaker Prime Minister Najib Mikati and economic bodies to address the issue. Despite these efforts, the government adopted an “incomplete” version of the decree that significantly diverged from the agreement reached by the Index Committee under the Ministry of Labor’s oversight.
Unable to resolve the issue through these meetings, the confederation conducted a legal study to assess the legality of the government’s actions. Al-Asmar consulted with legal experts from the confederation and the Legal Affairs Department, leading to an appeal being filed with the State Council. This appeal challenges the modifications made to Decree No. 13164 and opposes the removal of its second provision.
The Lebanese government was notified of this appeal by the Legal Affairs Department at the Ministry of Justice in the first week of June, starting a four-month period for responding to the appeal. Currently, Bechara al-Asmar and the General Confederation of Lebanese Workers are awaiting the outcome. The appeal includes detailed documentation, some dating back to the independence period, demonstrating that minimum wage increases have traditionally included a cost-of-living adjustment. The absence of this adjustment undermines the administrative and hierarchical structure when the minimum wage is raised without addressing the cost of living.
Al-Asmar continues to urge the government to restore the original decree with both provisions, as initially proposed by the Ministry of Labor and approved by the State Council. Restoring the decree is crucial for maintaining fairness, equality and social stability among private sector stakeholders.
