Following a government decision to boost the minimum wage for public sector workers from $150 to $230 per month, with an additional allowance for transportation costs and fuel expenses, attention turned to adjusting wages in the private sector.
The Index Committee is set to meet next Tuesday to address this issue. Expectations were high for the committee to announce salary increases and school grants for private-sector employees.
It’s anticipated that the minimum wage in the private sector will be raised to 20 million, roughly equivalent to $230 or possibly slightly less, but not below 18 million.
Furthermore, school grants are set to double from 6 million per student to 12 million.
Additionally, transportation allowances, which are currently around 11 million, will contribute to private-sector employees earning a minimum of $324, compared to approximately $400 in the public sector.
These adjustments are expected to be incremental, with plans to revisit the wage issue for further improvements once tensions in the south ease, thereby improving the lives of workers.
These changes will be announced during a meeting between the Labor Ministry, represented by Minister Mustafa Bayram, and employers’ and workers’ representatives, following an agreement among all parties.
Will employers report new salaries to Social Security for end-of-service benefits?
Many companies avoid reporting salaries to Social Security, leading to significant revenue losses and reduced social benefits.
Social Security authorities stress the imperative of raising this compliance rate from 10% to at least 50%, coinciding with the minimum wage hike.
This move would empower the institution to bolster healthcare coverage from the current 40-50% to 80-90%, reinstating pre-2019 crisis levels.
Related: Lebanon Advances On Seven UN Sustainable Development Goals In 2023
