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THURSDAY, 23 FEB 2012
06:08 AM Beirut time
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Lebanese to receive wage hikes starting end of February
An employee counting
An employee counting

BEIRUT: Lebanese employees will begin to receive their long-awaited salary increases from Feb. 1, after the official Gazette published the relevant decree Thursday.

The wage-hike decree became official after it was signed by President Michel Sleiman, Prime Minister Najib Mikati and Labor Minister Charbel Nahhas.

As of Feb. 1, 2012, “the minimum monthly wage will be fixed at LL675,000 and the minimum daily wage will be set at LL30,000, as per articles 1 and 2 of law No. 36/37 issued 15/05/1967,” stipulated the decree published in the Gazette.

The decree supersedes a wage hike in 2008, when employees received a LL200,000 increase in salaries.

After removing the LL200,000, salaries would receive a 100 percent increase on the first bracket, receiving up to LL400,000 but no less than LL375,000. Then an additional 9 percent hike would be given on the second salary bracket set between LL400,000 and LL1.5 million.

Effectively, employees will receive an increase ranging from LL175,000 for those earning the minimum monthly wage up to LL299,000 for salaries above LL1.5 million.

The decree said wage increases given to employees specifically “to match increases in living expenses” can be subtracted from the new wage hike.

The Cabinet had passed four different wage plans over the past few months, all of which were rejected by the Shura Council for failing to fully conform with Labor Laws.

A political consensus finally sealed a deal signed last December between the General Labor Confederation and private sector heads. Only minor amendments were made by the Cabinet to the original version of the agreement.

Jacque Sarraf, a leading industrialist, told the Central News Agency the private sector was committed to realizing the wage increase without further delay.

Ghassan Ghosn, head of the GLC, said his group insisted on an earlier demand that employees should receive four months of retroactive pay.

Ghosn called on Nahhas not to jeopardize the transportation allowance and sign a decree affirming the transportation allowance temporarily.

Nahhas had refused to sign a temporary decree concerning the transportation allowance, deeming it illegal.

He insists allowances should become a part of employees’ basic salaries.

The Shura Council, the state’s advisory body on constitutional and legal matters, has deemed the transportation allowance illegal, rejecting three different wage hike plans calling for amending allowances that Cabinet approved.

The Shura Council said that the Cabinet does not have the power to amend allowances.

This prompted the Cabinet to authorize Nahhas to prepare a draft law that empowers the government to set the allowance.

The draft law would then be put to a vote in a Parliament session.

A version of this article appeared in the print edition of The Daily Star on January 27, 2012, on page 4.
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