Hire Employees in Lebanon

Two routes exist. Registering a Lebanese entity gives you direct employment, followed by NSSF and Ministry of Finance registration.

An Employer of Record removes that setup. The EOR is the legal employer, runs payroll, remits NSSF contributions and withholds income tax, while day-to-day direction stays with you.

Employers are required to register all employees with the NSSF, whether the firm is local or international, and registration must occur soon after hiring.

Lebanon is in the middle of a structural change to its largest employer contribution. The country is transitioning from End-of-Service Indemnity to a new pension system under Law 319, effective 2026. Anyone modelling long-term employment cost here should treat the end-of-service branch as a moving target rather than a settled 8.5%.

Published contribution rates conflict more sharply than in any comparable market. The sickness and maternity employer rate appears as 11%, 9%, 8% and 7% across four current sources; its ceiling as LBP 140,000,000, 120,000,000 or 90,000,000; and end-of-service as 8.5% or 5%. The figures used on this page are the most recent ones carrying specific decree and memorandum references.

The economy shapes everything else. Average gross monthly salary in early 2026 is around LBP 25,000,000 to 28,000,000 — roughly USD 270 to 300, at or below the statutory minimum. GDP remains about 40% below 2019 levels, with projected growth of 3.2% in 2026.

Break-even rule of thumb: EOR fees begin to exceed the running cost of a Lebanese entity somewhere between 10 and 18 employees. Model both — see EOR vs Entity for the framework.

The NSSF operates three branches, each with its own rate and ceiling.

Sickness and maternity. The employer contributes 11% on the most recent sourcing, capped at LBP 140,000,000 a month — five times the minimum wage — set under Decree No. 699 and NSSF Memorandum No. 801 with effect from August 2025, up from a previous LBP 90,000,000. The employee contributes 3% on the same ceiling.

Family allowances. The employer contributes 6%. Effective 1 May 2026, under Decree No. 2923 and NSSF Memo No. 831, the ceiling rose to LBP 28,000,000 from LBP 18,000,000, matching the minimum wage.

End-of-service indemnity. The employer contributes 8.5% of gross with no ceiling — which makes it the dominant cost at higher salaries, since the other two branches cap out.

Treat these figures as requiring confirmation. One authoritative tax summary gives 8% for sickness on a LBP 120,000,000 base, 6% for family on a LBP 18,000,000 base, and 5% of annual earnings for end-of-service. Another gives 9% for sickness and a 23.5% total. The spread is wide enough that quoting without checking is unsafe.

Gross monthly salaries in Lebanese pounds. Only the end-of-service branch is uncapped, so it dominates employer cost above the other ceilings.

Benchmarks below are gross monthly salaries in Lebanese pounds. Note that the average gross salary in early 2026 sits at or near the statutory minimum, which shapes the whole market.

Payroll is monthly. Income tax on wages and salaries is progressive from 2% to 25%, withheld by the employer each month and remitted to the Ministry of Finance.

Expatriates receiving Lebanese-source income are subject to the same progressive rates as Lebanese nationals, though tax residency and any double taxation treaty may affect the final position.

Payment practice is shaped by banking constraints. Employers often pay salaries in cash "fresh" USD, or in LBP at market rates, because of restrictions in the banking system. That has practical implications for proof of payment and for how salary is evidenced to the NSSF.

There is no statutory requirement to pay a thirteenth or fourteenth month salary, and there is no evidence that bonuses are customary.

NSSF modernisation is ongoing, with digital systems being adopted progressively.

Progressive bands on wages and salaries, withheld monthly. Confirm current thresholds with the Ministry of Finance.

The minimum wage rose to LBP 28,000,000 a month under Decree No. 699, effective August 2025, up from LBP 18,000,000 set in 2024. The daily minimum is LBP 1,300,000. In dollar terms that is roughly USD 312.

The minimum wage now anchors two other figures, which is worth noting for forecasting: the sickness ceiling is set at five times it, and the family allowance ceiling was aligned to it exactly in May 2026.

Probation may not exceed three months. During probation employees are ineligible for any leave, including sick leave, and any leave taken is unpaid.

Statutory entitlements include annual leave, public holidays, paid maternity leave, paid sick leave and work injury coverage through the NSSF.

Contracts should record pay, hours, leave, notice and termination terms.

Register the employee with the NSSF soon after hiring, and maintain employment contracts, identification documents and salary statements as supporting records.

For a foreign national, check the reciprocity condition and confirm which branches they can actually benefit from before setting expectations.

Because two of the three branches cap out, the marginal employer cost of additional pay falls as salary rises — but never to zero, since end-of-service is uncapped.

The family allowance ceiling of LBP 28,000,000 is low relative to professional salaries, so that branch is effectively a flat charge for most staff.

Overtime and additional pay should be assessed against each ceiling separately rather than as a single contribution base.

Lebanon observes Christian, Muslim and national public holidays, reflecting both calendars. Islamic dates follow the lunar calendar and are confirmed close to the time.

Lebanon observes Christian, Muslim and national public holidays, reflecting both calendars. Islamic dates follow the lunar calendar and are confirmed close to the time. Dates and any substitution rules are set out below.

The NSSF administers sickness and maternity cover, family allowances and end-of-service indemnities.

Family allowance payouts have risen twice in under a year. Decree No. 422 of 19 June 2025 set LBP 1,200,000 for a spouse and LBP 660,000 per child for up to five children, capped at LBP 4,500,000. Decree No. 2923, effective 1 May 2026, raised these to LBP 2,100,000 for a spouse and LBP 1,155,000 per child.

End-of-service indemnity gives one month of the last salary for each year worked. An employee may take early retirement at 60 with 20 years of service, receiving a one-time payment.

Retirement age is 64, after which NSSF benefits cease. An employee may continue working past 64 where company by-laws allow, but accrues no further end-of-service entitlement.

Family and education allowances attach to the husband’s salary rather than the wife’s, except where the female employee is a widow or the sole provider.

Termination follows the Labour Code, with notice and severance set by statute and contract.

End-of-service indemnity is the significant terminal cost — one month of the last salary for each year of service, funded through the 8.5% uncapped contribution.

That branch is changing. Law 319 replaces the indemnity with a pension system from 2026, so accrual and payout mechanics should be confirmed before relying on the traditional formula in any exit calculation.

Final pay including accrued leave is due on separation and must be reflected in the month’s NSSF declaration and income tax withholding.

Foreign employees can join the NSSF only on a reciprocity condition. Those holding valid work and residence permits are entitled to join provided their home country offers equivalent or better programmes to Lebanese residents employed there.

Foreign nationals are not entitled to end-of-service benefits. That is worth stating plainly to any expatriate hire, because the employer still contributes 8.5% uncapped toward a branch from which they cannot claim.

Expatriates on Lebanese-source income pay the same 2% to 25% progressive tax as nationals, subject to residency rules and any applicable treaty.

Both a work permit and a residence permit are needed, and both should be confirmed before the start date.

Using a superseded rate or ceiling is close to unavoidable without checking. The sickness employer rate is published at 11%, 9%, 8% and 7%; its ceiling at LBP 140m, 120m and 90m; and end-of-service at 8.5% or 5%. Confirm with the NSSF rather than relying on any single guide.

Assuming expatriates accrue end-of-service rights is a costly error in the other direction — they do not, despite the employer contribution.

The Law 319 pension transition changes the largest branch. Long-term cost models built on the traditional indemnity formula may not hold.

Note also that the family allowance ceiling changed on 1 May 2026; that probation carries no leave entitlement at all; and that salaries are frequently paid in cash outside the banking system.

Work backwards from the start date. An EOR hire takes three to six weeks; entity formation runs two to five months.

Confirm all three branch rates and ceilings with the NSSF before quoting — this is not a market where published figures can be trusted without verification.

Check the Law 319 position for end-of-service, apply the May 2026 family allowance ceiling, verify reciprocity for any foreign hire, and agree how salary will actually be paid given banking constraints.