BEIRUT: The Shura Council rejected Tuesday Cabinet’s third wage hike proposal, citing a violation of the country’s social security laws.
“[The proposal] contradicts article 68 of the Social Security law, which the proposal is based on ... The proposed amount added to the salary, [amounting to] LL236,000, includes the daily transportation fees ... violating the law,” the council said in a statement.
It added that the institution responsible by law for amending decrees is the legislative branch represented by Parliament.
On Dec. 21, the Cabinet approved a wage hike proposal by Labor Minister Charbel Nahhas that stipulates the minimum wage goes up to LL868,000 – a sum that includes a LL236,000 transportation allowance that the government added to the basic salary.
The increase was set at 18 percent, in accordance with inflation rates as calculated by the state-run Central Administration of Statistics since 2008.
Salaries under LL1.5 million would receive an 18 percent increase while salaries above LL1.5 million would receive an additional 10 percent on the second salary bracket between LL1.5 million and LL2.5 million. Salaries above LL2.5 million would not earn an additional increase, meaning the raise on these salaries will be at LL370,000.
The Shura council is a governmental body whose recommendations are non-binding.