Dual-currency payroll
Lebanon’s currency is the Lebanese pound (LBP). Since the 2019 crisis, most private-sector salaries are agreed and paid fully or partly in fresh USD, in cash or into fresh-dollar bank accounts. Tax and NSSF are still computed in LBP:
- Income tax: foreign-currency salaries are converted at LBP 89,500 per USD since 1 April 2024 (MoF Decision 302).
- NSSF: uses the highest official Banque du Liban rate, currently 89,500 (NSSF Memorandum 740, February 2024).
Pre-crisis bank dollars (“lollars”) are not the same as fresh USD. Contracts should name the payment channel.
Income tax on salaries
Salary tax falls under the Income Tax Law (Legislative Decree 144/1959). Budget Law No. 324 of 2024 multiplied the 2022 bands by 20, and MoF Decision 959 set the 2025 tables. No source we reviewed reports a change for 2026, but confirm against any 2026 MoF decision. Tax uses annual bands, withheld monthly at 1/12.
| Annual taxable salary after family exemptions (LBP) | Rate |
|---|---|
| 0 – 360 million | 2% |
| 360 million – 900 million | 4% |
| 900 million – 1.8 billion | 7% |
| 1.8 billion – 3.6 billion | 11% |
| 3.6 billion – 7.2 billion | 15% |
| 7.2 billion – 13.5 billion | 20% |
| Above 13.5 billion | 25% |
Family exemptions. PwC gives an annual range of LBP 450 million (single) to LBP 900 million (married with children). Secondary sources disagree on the per-child amount, so confirm the split with the MoF tables.
Termination indemnities paid from 15 February 2024 to 31 December 2025 were exempt from payroll tax; we found no extension for 2026. The statutory transport allowance of LBP 450,000 per working day is commonly treated as outside the tax and NSSF base; verify for your payroll.
National Social Security Fund (NSSF)
Each branch has its own ceiling, so the effective rate falls for higher earners.
| Branch | Employer | Employee | Monthly ceiling (LBP) |
|---|---|---|---|
| Sickness and maternity | 8% | 3% | 120 million |
| Family and education allowances | 6% | – | 28 million |
| End-of-service indemnity (EOSI) | 8.5% | – | None |
| Total | 22.5% | 3% |
Points to check:
- Sickness ceiling: Decree 887 (August 2025) set 120 million, which PwC uses, but an NSSF memo cited 140 million. NSSF guidance is pending.
- Family ceiling: Decree 2923 raised it from 18 million to 28 million, reported from 1 May 2026. PwC still shows 18 million.
- EOSI rate: PwC lists 5%, but the ILO and NSSF give 8.5%.
NSSF pays family allowances monthly: LBP 2,100,000 for a spouse and LBP 1,155,000 per child (up to 5), with a maximum of LBP 7,875,000.
Foreign employees with a work permit are registered with NSSF, but benefits such as family allowances and EOSI depend on reciprocity with the home country. Confirm each nationality with NSSF.
Pension reform. Law 319/2023 will replace EOSI with a pension inside NSSF, with total contributions expected to rise gradually to 17–18%. It is not yet operational; NSSF targets launch by end-2026.
End of service
EOSI is paid by NSSF: last monthly salary × years of service. At exit the employer pays NSSF the settlement difference against contributions already paid. This is a large liability for long-serving staff whose salary is now declared at 89,500 per USD. Reduced amounts apply on resignation with short service; confirm the scale with NSSF or counsel.
Notice for indefinite contracts: 1 month under 3 years’ service, 2 months for 3–6 years, 3 months for 6–12 years and 4 months from 12 years. Arbitrary dismissal adds court-assessed damages of 2–12 months’ wages (Labour Code Art. 50).
Wage payment rules
There is no wage protection system. Monthly-paid staff must be paid at least monthly (Labour Code Art. 47). Pay can be in LBP or USD by agreement, in cash or by bank transfer. Payslips and NSSF declarations are in LBP.
Working time and leave
- Hours: 48 a week (Art. 31), with 36 consecutive hours of weekly rest.
- Overtime: 150% of the normal hourly wage.
- Annual leave: 15 working days after one year of service (Art. 39).
- Maternity leave: 10 weeks fully paid (Law 267/2014).
- Bonuses: no statutory 13th month, but a 13th salary is common in banking and multinationals.
Minimum wage
The minimum wage is LBP 28,000,000 a month (LBP 1,300,000 a day) from 1 August 2025, about USD 313 at 89,500. Secondary sources cite different decree numbers. No 2026 increase was found.
Gotchas for foreign employers
- Payroll must run in two currencies and keep evidence of the conversion rate.
- NSSF ceilings change by decree several times a year. Re-check them each payroll run.
- Accrue for the EOSI settlement difference.
- Transport, family and schooling allowances are separate from base salary and are often missed.