MAY 2023 – LEBANON
TRANSPORTATION ALLOWANCE & COST OF LIVING ALLOWANCE
It is important that employers note the following:
Increase to the transportation allowance and cost of living allowance
Effective 26 April 2023, the Lebanon Government has increased the daily transportation allowance for private sector employees from LBP 95,000 to LBP 250,000 through Decree 11224.
This is a mandatory allowance granted by employers to their employees for each working day, as per the Labour Law.
It should be noted that these earnings are exempted from income tax or social security.
If the transportation allowance paid to the employees is higher than the above mentioned cap, i.e., LBP 250,000/working day, the amount exceeding LBP 250,000/working day is subject to income tax, employee social security contributions and employer social security contributions.
In addition, due to the increase to the minimum wage from LBP 2,600,000 to LBP 9,000,000 starting from 26 April 2023, all employees in the private sector are granted an additional allowance of LBP 4,500,000 for the cost of living.
The daily minimum wage is now LBP 410,000.
To view Decree No. 11224, dated 26 April 2023 regarding the transportation allowance, follow the link.
To view Decree No. 11226, dated 26 April 2023 regarding the cost of living allowance and national minimum wage, follow the link.
Kindly note that the decrees are not available in English.
Contact our legislation team on email@example.com if you require any additional information.
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