Employer of Record Guide in Lebanon
Lebanon's dynamic talent pool offers incredible opportunities for global teams, but navigating the country's unique employment landscape requires local expertise. Our comprehensive guide helps you hire compliantly and confidently in this vibrant Middle Eastern market.
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From Beirut's thriving tech scene to emerging renewable energy sectors, Lebanon presents compelling opportunities for businesses seeking skilled professionals in high-demand fields. Understanding the local market dynamics—including economic hubs, tax structures, and talent availability—is essential for successful expansion.
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Your EOR guide in Lebanon
Lebanese employment law encompasses complex requirements from progressive tax structures to unique religious observances that impact your hiring strategy. This detailed breakdown covers everything from minimum wage considerations to comprehensive onboarding timelines, ensuring your team stays compliant while building your Lebanese workforce.
Minimum Wage
Note: Research shows conflicting minimum wage figures - please verify current rates
The minimum wage in Lebanon is subject to recent adjustments due to economic conditions. Current sources indicate:
- LBP 18,000,000 per month (effective January 1, 2025)
- Alternative sources suggest LBP 1,200,000 per month (May 2025)
Given the significant discrepancy in these figures, employers should verify the current minimum wage with the Lebanese Ministry of Labour before finalizing employment contracts.
Payroll Cycle
Lebanese labour law requires specific payment schedules:
- Salaried employees: Monthly payments at the end of each month
- Non-salaried employees: Twice monthly payments
- Payment method: Must be in Lebanese Pounds (LBP) unless otherwise agreed
Individual Income Tax
Lebanon operates a progressive income tax system:
| Annual Income (LBP) | Tax Rate |
|---|---|
| Up to 9,000,000 | 2% |
| 9,000,001 to 24,000,000 | 4% |
| 24,000,001 to 60,000,000 | 7% |
| 60,000,001 to 120,000,000 | 11% |
| 120,000,001 to 225,000,000 | 15% |
| 225,000,001 to 450,000,000 | 20% |
| Over 450,000,000 | 25% |
Tax Residency Criteria
Individuals are considered Lebanese tax residents if they:
- Reside in Lebanon for more than 183 days in a calendar year
- Have their principal residence or centre of economic interests in Lebanon
- Are Lebanese nationals working abroad for the Lebanese government
Employer Payroll Contributions
Employers must contribute to several mandatory schemes:
| Contribution Type | Employer Rate | Employee Rate | Total |
|---|---|---|---|
| National Social Security Fund (NSSF) | 8.5% | 3% | 11.5% |
| End of Service Indemnity | 8.5% | - | 8.5% |
| Family Allowances | 6% | - | 6% |
| Total Employer Cost | 23% | 3% | 26% |
Working Hours
The standard working arrangement in Lebanon includes:
- Regular hours: 8 hours per day, 48 hours per week
- Working days: Monday through Saturday (6-day work week)
- Maximum daily hours: 10 hours including overtime
- Rest periods: Minimum 1 hour lunch break for shifts over 6 hours
Overtime Pay
Overtime compensation is mandatory for hours worked beyond the standard schedule:
- Rate: 150% of regular hourly wage
- Calculation: Based on monthly salary divided by 208 hours (48 hours × 52 weeks ÷ 12 months)
- Maximum overtime: 2 hours per day, 12 hours per week
- Weekend work: Premium rates may apply for work on designated rest days
Bonus Payments
Lebanese employment practices commonly include:
- 13th month bonus: Customary but not legally mandated
- Performance bonuses: Subject to employment contract terms
- Holiday bonuses: Often provided during religious holidays
Full-Time vs. Part-Time
- Full-time: Employees working the standard 48-hour work week
- Part-time: Employees working fewer than 48 hours per week with proportional benefits
Vacation Leave
Note: Research shows potential discrepancy in sick leave entitlements - please verify with Lebanese labour authorities
- Minimum entitlement: 15 working days per year after one year of service
- Accrual: Earned proportionally throughout the year
- Scheduling: Subject to employer approval and operational needs
- Payout: Unused vacation must be paid upon termination
Sick Leave
Research indicates conflicting information - verification needed
Lebanese labour law provides:
- Entitlement: Half a month of full pay after three months of employment
- Alternative source: 12 days of sick leave per year
- Medical certification: Required for extended absences
- Chronic illness: Extended provisions may apply
Maternity Leave
- Duration: 10 weeks total
- Paid leave: 7 weeks at full salary
- Unpaid leave: 3 weeks
- Job protection: Position must be held during leave period
- Nursing breaks: Additional provisions for nursing mothers
Paternity Leave
- Duration: 3 days
- Payment: Full salary
- Timing: Must be taken within one week of birth
Annual Pilgrimage Leave
- Muslim employees: 15 days for Hajj pilgrimage (once per employment)
- Christian employees: 15 days for pilgrimage to Holy Land (once per employment)
- Payment: Unpaid leave
Other Statutory Leave
- Bereavement: 3-7 days depending on relationship
- Marriage leave: 3 days for employee's wedding
- Military service: As required by Lebanese law
Summary
| Leave Type | Duration | Paid? | Frequency |
|---|---|---|---|
| Annual Leave | 15 days | Yes | Annual |
| Sick Leave | Half month* | Yes | As needed |
| Maternity | 10 weeks (7 paid) | Partially | Per birth |
| Paternity | 3 days | Yes | Per birth |
| Pilgrimage | 15 days | No | Once per employment |
| Bereavement | 3-7 days | Yes | As needed |
Termination Types
Termination With Cause:
- Immediate dismissal without notice or compensation
- Must involve serious misconduct or breach of contract
- Requires documented evidence and proper procedure
Termination Without Cause:
- Requires advance notice or payment in lieu
- Subject to severance payment obligations
- Must comply with procedural requirements
Notice Period Requirements
Notice periods vary based on length of service and employee category:
| Length of Service | Notice Period |
|---|---|
| Less than 6 months | 1 week |
| 6 months to 2 years | 1 month |
| 2 to 5 years | 2 months |
| Over 5 years | 3 months |
Severance Pay
End of service indemnity is mandatory for all terminations without cause:
- Calculation: One month's salary for each year of service
- Minimum: Half month's salary for partial years
- Maximum: No legal maximum limit
- Payment timing: Must be paid with final salary
Probationary Periods
- Duration: Up to 3 months for most positions
- Termination: Either party may terminate with minimal notice during probation
- Benefits: Limited benefit entitlements during probationary period
Final Pay Requirements
Employers must provide final compensation within:
- Regular termination: End of notice period
- Immediate termination: Within one week
- Components: Final salary, accrued vacation, end of service indemnity
Legal Protections
Employees are protected against termination based on:
- Pregnancy or maternity leave
- Trade union activities
- Filing labour complaints
- Discrimination based on religion, gender, or nationality
National Public Holidays
Lebanon observes both Christian and Muslim holidays:
| Holiday | Date | Religion |
|---|---|---|
| New Year's Day | January 1 | Secular |
| Epiphany | January 6 | Christian |
| St. Maroun Day | February 9 | Christian |
| Good Friday | Varies | Christian |
| Easter Monday | Varies | Christian |
| Labour Day | May 1 | Secular |
| Martyrs' Day | May 6 | Secular |
| Independence Day | November 22 | Secular |
| Christmas Day | December 25 | Christian |
| Eid al-Fitr | Varies | Muslim |
| Eid al-Adha | Varies | Muslim |
| Islamic New Year | Varies | Muslim |
| Ashura | Varies | Muslim |
| Prophet's Birthday | Varies | Muslim |
Religious Observance
- Total holidays: Approximately 16 national holidays
- Religious diversity: Both Christian and Muslim holidays are observed
- Workplace accommodation: Employers must respect religious observances
Holiday Pay Rules
- Eligibility: All employees entitled to holiday pay
- Rate: Regular daily wage
- Working on holidays: Premium pay (typically 200% of regular rate)
Required Documents for Employment
- Employment Contract: Must be in Arabic and include all terms and conditions
- Work Permit: Required for non-Lebanese nationals
- Residence Permit: Mandatory for foreign employees
- Medical Certificate: Health clearance from approved medical centres
- Educational Certificates: Authenticated copies of qualifications
- Criminal Background Check: From country of origin
Work Authorization
Lebanese Nationals:
- No work authorization required
- Must provide national ID and civil registry documents
Foreign Nationals:
- Work permit required before employment
- Residence permit must be obtained within one month
- Sponsor (employer) responsible for permit applications
Language Requirements
- Official language: Arabic
- Employment contracts: Must be in Arabic
- Workplace communication: Arabic or French commonly used
- Documentation: All official documents must be in Arabic
Social Security Registration
- NSSF registration: Mandatory within 15 days of employment start
- Employee contributions: Deducted from salary
- Employer obligations: Registration and contribution payments
Banking and Payroll Setup
- Bank account: Lebanese bank account recommended for salary payments
- Currency: Payments typically in Lebanese Pounds (LBP)
- Documentation: Banking forms and salary payment authorizations
Onboarding Timeline
| Step | Timeline |
|---|---|
| Job offer accepted | Day 0 |
| Work permit application (if applicable) | Day 1-30 |
| Employment contract signing | Day 30-45 |
| NSSF registration | Day 45-60 |
| Medical examination | Day 45-60 |
| First day of work | Day 60-90 |
What the EOR Handles
Borderless AI manages:
- Employment contract preparation in Arabic
- Work permit and residence permit applications
- NSSF registration and compliance
- Payroll setup and tax compliance
- Local regulatory compliance monitoring
Worker Classification
Lebanese labour law distinguishes between different employment categories:
Employees:
- Subject to Lebanese Labour Code
- Entitled to full benefits and protections
- Employer controls work methods and schedule
Independent Contractors:
- Governed by civil contract law
- Responsible for own social security contributions
- Greater autonomy in work execution
Domestic Workers:
- Subject to separate regulations
- Different minimum wage and working hour rules
- Specific contract requirements
Collective Bargaining
- Trade unions: Legal and active in various sectors
- Collective agreements: May override individual contract terms
- Sector-specific: Banking, telecommunications, and public sectors commonly unionized
Cultural Considerations
Religious Accommodation:
- Respect for both Christian and Muslim practices
- Prayer time accommodation expected
- Religious holiday observance important
Language and Communication:
- Arabic, French, and English commonly used
- Formal communication style preferred
- Relationship-building important in business culture
Work-Life Balance:
- Family obligations highly valued
- Extended lunch breaks common
- Flexible scheduling during Ramadan
Remote Work Framework
Remote work arrangements are increasingly accepted but require:
- Written agreement outlining terms and conditions
- Clear performance metrics and communication protocols
- Compliance with Lebanese labour law regardless of work location
- Proper equipment and technology provision
Economic Considerations
Given Lebanon's economic situation, employers should consider:
- Currency fluctuation impacts on salary payments
- Banking system limitations and payment methods
- Employee financial security concerns
- Potential for economic policy changes affecting employment
Built-in benefits packages for Lebanon
When the world is your competition, it pays to incentivize new hires and existing alike. Borderless AI benefits packages typically inlucde:
Medical Insurance
Dental Insurance
Retirement Contribution
Life Insurance
Vision Insurance
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