Payroll and Benefits Guide Lebanon
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
8.00%
|
Maternity & Sickness Benefit |
|
6%
|
Family Benefit Scheme |
|
8.5%
|
End-of-Service Indemnity (pension/severance) |
| 22.5% |
Total Employer Cost |
| Employee Payroll Contributions | |
|
3%
|
Medical Scheme |
| 11.20% |
Total Employee Cost |
Income tax
Personal income tax in Lebanon for 2025 (residents): progressive rates on annual taxable income, using Decision No. 959, effective January 2025:
-
Up to LBP 360,000,000: 2%
-
LBP 360,000,001 – 900,000,000: 4%
-
LBP 900,000,001 – 1,800,000,000: 7%
-
LBP 1,800,000,001 – 3,600,000,000: 11%
-
LBP 3,600,000,001 – 7,200,000,000: 15%
-
LBP 7,200,000,001 – 13,500,000,000: 20%
-
Above LBP 13,500,000,001: 25%
Employer taxes
Working Hours
General
In Lebanon, the standard workweek is 48 hours, typically spread over six days (e.g. Monday to Saturday), with a standard working day of 8 hours. In certain sectors or urgent situations, daily hours may be extended up to 12 hours, provided that the Ministry of Labor is notified within 24 hours and appropriate overtime compensation is paid.
Overtime
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Maximum Ordinary Hours: The standard work limit is 48 hours per week (Labour Code Article 10), typically spread over six days (8 hours per day). Any work performed beyond this is considered overtime.
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Absolute Daily Cap: The maximum total working hours per day, including overtime, generally cannot exceed 12 hours. Employers must notify the Ministry of Labour within 24 hours if daily working hours exceed the standard 8 hours.
-
Weekly Overtime Cap: While the law sets a daily cap, the total hours worked, including overtime, should not exceed legal limits. Specific annual or monthly caps are generally managed by the restriction of the 12-hour daily limit.
-
Exemptions: Employees in managerial or supervisory positions and certain employees whose duties or salary levels reflect their responsibilities are typically exempt from the standard working hour restrictions.
Mandatory Overtime Pay Rates
Overtime compensation is mandatory and is calculated as a minimum premium percentage of the employee’s regular hourly wage. The rate increases significantly for work performed on rest days and holidays.
| Day/Condition | Minimum Compensation Rate (Supplement) | Total Pay Rate | Notes |
| Standard Overtime (Working Days) | +50% of the regular hourly wage. | 150% | Applies to hours worked beyond the 48-hour weekly limit. |
| Weekly Rest Day (e.g., Sunday) | +100% of the regular hourly wage. | 200% | This double-time rate is the minimum for all hours worked on the designated rest day. |
| Public Holiday Work | +100% of the regular hourly wage. | 200% | This double-time rate is the minimum for all hours worked on an official public holiday. |
Payroll
The payroll cycle in Lebanon is generally a monthly cycle.
13th Salary
There is no 13th salary in Lebanon
Leave
Annual Leave (vacation)
Employees in Lebanon are entitled to 15 working days of paid annual leave after completing one full year of continuous service. The employer may schedule the leave based on operational needs.
PTO carryover
In Lebanon, statutory annual leave does not have a clear automatic carryover right in the law. Leave is meant to be taken when due, but accrued statutory leave cannot be forfeited. If employment ends before leave is taken, unused leave must be paid out. A blanket “use-it-or-lose-it” policy that deletes accrued leave is not supported.
Public Holidays
Holidays falling on the weekend are observed on the following working day(s).
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 6 January 2026 | Tuesday | Armenian Orthodox Christmas | Standard holiday |
| 9 February 2026 | Monday | Saint Maroun’s Day | Standard holiday |
| 14 February 2026 | Saturday | Rafik Hariri Memorial Day | Standard holiday |
| 20 March 2026 | Friday | Eid al-Fitr (End of Ramadan) | |
| 21 March 2026 | Saturday | Eid al-Fitr Holiday | |
| 25 March 2026 | Wednesday | Feast of the Annunciation | Standard holiday |
| 3 April 2026 | Friday | Good Friday (Western Churches) | Standard holiday |
| 6 April 2026 | Monday | Easter Monday (Western Churches) | Standard holiday |
| 10 April 2026 | Friday | Good Friday (Eastern Churches) | Standard holiday |
| 13 April 2026 | Monday | Easter Monday (Eastern Churches) | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 3 May 2026 | Sunday | Martyrs’ Day | Standard holiday |
| 25 May 2026 | Monday | Resistance and Liberation Day | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha (Feast of Sacrifice) | |
| 28 May 2026 | Thursday | Eid al-Adha Holiday | |
| 16 June 2026 | Tuesday | Islamic New Year (Hegira) | |
| 25 June 2026 | Thursday | Ashoura | |
| 15 August 2026 | Saturday | Feast of the Assumption | Standard holiday |
| 25 August 2026 | Tuesday | Prophet’s Birthday (Mawlid) | |
| 22 November 2026 | Sunday | Independence Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
Lebanese employees are generally entitled to 15 days of fully paid sick leave per year. Extended sick leave typically requires a medical certificate, especially if lasting beyond a few days.
Maternity Leave
Female employees are entitled to 10 weeks of paid maternity leave, which can be taken either before or after delivery, provided a medical certificate is presented.
Paternity Leave
Lebanon currently provides no statutory paternity leave; any leave granted to fathers around childbirth is at the employer’s discretion or based on internal company policy.
Parental Leave
There is no statutory parental leave (shared between both parents) in Lebanese labor law. Any such benefits are entirely subject to individual employer discretion or policy and not mandated
Bereavement leave
Lebanon does not have a statutory provision for bereavement or compassionate leave. Any such leave related to bereavement or adoption is typically handled through company-specific policies or agreements.
Employer taxes
Termination
Termination Process
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Termination by Employee
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The employee must submit a written resignation and serve the required notice, unless the employer waives it. Failure to provide the notice allows the employer to seek compensation for that notice period.
-
-
Termination by Employer without Cause
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Must provide written notice based on the employee’s length of service:
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Under 3 years: 1 month
-
3–6 years: 2 months
-
6–12 years: 3 months
-
Over 12 years: 4 months
-
-
If notice isn’t given, the employer must pay in lieu of notice.
-
-
Immediate Dismissal with Cause
-
Allowed without notice or severance for serious offenses, including fraud, absence without excuse, serious negligence, revealing company secrets, criminal convictions, or workplace assault. Proper documentation and an impartial investigation are required.
-
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| Salaries must be paid at least monthly for salaried employees; for non-salaried workers, payment at least twice a month is referenced in guidance. | When employment ends, the employer must pay any outstanding wages, accrued leave and severance/indemnity where applicable. Notice periods apply (e.g., 1 month notice for <3 yrs service, 2 months for 3-6 yrs, etc.). | The law does not clearly mandate that all salary payments must be made exclusively via bank account in all cases. Payment may be by other methods unless otherwise agreed. |
Notice Period
-
Up to 3 years of service – 1 month’s notice
-
3–6 years of service – 2 months’ notice
-
6–12 years of service – 3 months’ notice
-
Over 12 years of service – 4 months’ notice
If notice is not given, the employer must pay salary in lieu of the notice period.
Severance Pay
-
Termination without cause: Employees are entitled to one month’s salary for each year of service, prorated for partial years, paid upon termination.
-
Unfair or abusive dismissal: Additional compensation of up to 12 months’ salary, considering factors like age, years of service, the nature of work, and the circumstances surrounding the dismissal
Probation Period
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The standard probation period is up to three months.
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During probation, either party may terminate the contract without notice or severance, unless otherwise agreed in writing.
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Some sectors or contracts may set shorter or longer probation terms, but these must be explicitly stated in the employment contract and comply with labor law.
Immigration
All foreign nationals must obtain a work permit and residency permit before starting employment in Lebanon. The process is handled by the Ministry of Labor and the General Directorate of General Security, and always requires employer sponsorship.
Types of Work Permits
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Short-Term: Up to 1 year, renewable; used for temporary or contract roles.
-
Long-Term: Up to 3 years, renewable; typically for professional, managerial, or technical positions.
Process Overview
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Employer applies for work permit at the Ministry of Labor.
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Upon approval, the employee applies for an entry visa at a Lebanese embassy or consulate.
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After arrival, the employee must obtain a residency permit within one month.
Key Requirements (authenticated and translated into Arabic or French):
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Valid passport (6+ months)
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Signed employment contract
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Qualifications and police clearance
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Medical certificate and photos
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Work permit approval letter
Processing Time
-
Work permit: 1–3 weeks
-
Entry visa: a few days to 2 weeks
Restrictions
-
Employers must prove no qualified Lebanese candidate is available.
-
Permits are employer- and role-specific; changes require reapplication.
-
Overstays may result in fines, deportation, or bans.
Minimum Wage
As of 2025, the official minimum wage in Lebanon is set at LBP 18,000,000 per month, which is roughly equivalent to USD 200 at the Sayrafa exchange rate. This rate applies across all sectors, and employers are legally obligated to comply with it when compensating employees.
MINIMUM WAGE (PER MONTH)
VAT
Lebanon operates a Value Added Tax system with a standard rate of 11% applied to most goods and services. Certain categories, such as financial services, insurance, education, and health care, are exempt, while exports and some international transport services are zero-rated. VAT registration is mandatory for businesses with an annual turnover exceeding LBP 5 billion, though voluntary registration is permitted for those with turnover above LBP 100 million. VAT returns are typically filed on a quarterly basis, with payments due by the 20th of the month following the close of the quarter.
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Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 6 January 2026 | Tuesday | Armenian Orthodox Christmas | Standard holiday |
| 9 February 2026 | Monday | Saint Maroun’s Day | Standard holiday |
| 14 February 2026 | Saturday | Rafik Hariri Memorial Day | Standard holiday |
| 20 March 2026 | Friday | Eid al-Fitr (End of Ramadan) | |
| 21 March 2026 | Saturday | Eid al-Fitr Holiday | |
| 25 March 2026 | Wednesday | Feast of the Annunciation | Standard holiday |
| 3 April 2026 | Friday | Good Friday (Western Churches) | Standard holiday |
| 6 April 2026 | Monday | Easter Monday (Western Churches) | Standard holiday |
| 10 April 2026 | Friday | Good Friday (Eastern Churches) | Standard holiday |
| 13 April 2026 | Monday | Easter Monday (Eastern Churches) | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 3 May 2026 | Sunday | Martyrs’ Day | Standard holiday |
| 25 May 2026 | Monday | Resistance and Liberation Day | Standard holiday |
| 27 May 2026 | Wednesday | Eid al-Adha (Feast of Sacrifice) | |
| 28 May 2026 | Thursday | Eid al-Adha Holiday | |
| 16 June 2026 | Tuesday | Islamic New Year (Hegira) | |
| 25 June 2026 | Thursday | Ashoura | |
| 15 August 2026 | Saturday | Feast of the Assumption | Standard holiday |
| 25 August 2026 | Tuesday | Prophet’s Birthday (Mawlid) | |
| 22 November 2026 | Sunday | Independence Day | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Questions & Answers