By opening your doors to the global talent pool and hiring international employees, your company gains access to diverse skills and fresh perspectives. Recruiting beyond your physical borders offers round-the-clock operations, reduced labor costs, and valuable cultural insight. For these reasons and more, companies are embracing global hiring and looking to countries like Lebanon.
Lebanese professionals bring unique skills, knowledge, and perspectives to the table. They typically possess strong educational backgrounds and proficiency in multiple languages, making them well-suited for global business environments.
If you’re interested in hiring employees from Lebanon, it’s key to understand how much it costs. This guide will break down everything you need to know.
Costs to Consider
There are a number of costs to keep in mind when hiring employees from Lebanon. Some are legally mandated, while others are optional but frequently offered. We’ll also go over some fringe benefits that can help attract and retain top talent.
Mandatory Costs
- Salary
- Taxes and benefits
- Paid time off
- Overtime pay
- Severance pay
Optional and Frequently Offered Benefits
- Added Benefits
- Bonuses, discounts, and rewards
- Extended health plan
Optional Perks
- Coworking space
- Health and wellness benefits
Mandatory Costs of Hiring in Lebanon
To start, you need to take the following costs into account - there’s no way around it. So make sure to budget for them to ensure you comply with Lebanon’s local laws and regulations.
Salary
The minimum wage in Lebanon currently stands at LBP 9,000,000 per month or $601.22 USD. Though it can vary significantly depending on the industry, job position, and level of experience, the typical annual salary is 606,737,128 LBP, or $39,773 USD.
Taxes and Contributions
Employers in Lebanon are subject to the following taxes and contributions.
- 8%: Social security (maximum of $1,652 per month)
- 6%: Family benefit scheme (maximum of $991 per month)
- 8.5%: End of service compensation fund
Paid Leave
Employees in Lebanon are entitled to the following types of paid leave from work.
- Vacation: In Lebanon, the vacation policy typically grants employees a certain number of days off for vacation or personal time, depending on their length of service and the specific employment contract. The number of vacation days may vary between companies, but it is common for employees to be entitled to a minimum of 15 days of annual leave. Some employers may offer additional vacation days based on seniority or other factors.
- Sick leave: For employees with at least three months' service but less than two years' service, the sick leave policy in Lebanon entitles them to receive full pay for the first half of the month and half pay for the remaining half of the month during their period of sick leave.
- Maternity Leave: Female employees are entitled to a period of 10 weeks of maternity leave, which includes a mandatory six weeks after childbirth. During this period, female employees receive full pay, with the cost covered by the National Social Security Fund (NSSF).
- Public holidays: Lebanon has 18 public holidays. Employees are generally entitled to receive their regular pay for working on public holidays, paid for by their employer. However, if an employee is required to work on a public holiday, they may be eligible for additional compensation, such as overtime pay or a substitute day off, depending on the employment contract and company policies.
Overtime Pay
Employees are entitled to receive additional compensation for overtime work, typically at 150% of their regular hourly wage.
Severance Pay
Severance pay is typically provided when an employee's contract is terminated due to reasons such as redundancy, retirement, or mutual agreement. The amount of severance pay is based on the employee's length of service and their final salary and typically ranges from 2 to 12 months of salary.
Optional Costs
Attracting in-demand talent in today’s job market isn’t easy. The ongoing labor shortage has companies locked in fierce competition around the world, making it increasingly important to level up. Consider implementing the following benefits to attract and retain top talent.
Benefits
Offering a solid benefits package shows job seekers and employees that you value your team. An EOR, like Borderless, offers localized benefits packages that typically include the following:
- Medical Insurance
- Vision Insurance
- Dental Insurance
- Life Insurance
- Retirement Contributions
In addition to health insurance, it’s wise to add extra perks to your benefits package. Consider offering a health and wellness spending account, professional development opportunities, and monthly subscriptions. These are just a few attractive offerings that can help incentivize new hires.
Bonuses
Along with attracting top talent, bonuses come with a range of benefits. They help to improve retention rates, strengthen company morale, and boost productivity. Providing your team with a variety of generous bonuses shows them you value their hard work.
In Lebanon, it is not a legal requirement for employers to provide a 13th-month salary. However, some may choose to offer one or an end-of-year gratuity as a discretionary benefit to employees.
Perks and Rewards
In addition to bonuses, many employers opt to provide their team with fun perks and gifts as a way to show their appreciation. For example, employers offer their workers rewards based on their interests, such as free sports tickets or live shows. They wine and dine employees and work to show them a good time outside of working hours. Another approach many top companies take is to offer quality employees more paid time off and flexible working arrangements.
Workspace Costs
Working with a global team helps cut down on costs surrounding real estate, utilities, cleaning, office furniture, etc. In short, remote-first work can save you a ton. However, it is a good idea to put aside some money for your distributed team members' workspaces.
Many companies offer their remote employees a budget for their home office or set them up in a coworking space. These membership-based workspaces have been proven to help employees thrive and are available throughout Lebanon.
Save with Borderless
Sign up with Borderless to learn everything you need to know about hiring in Lebanon. Our intuitive platform and dedicated team will make sure you take care of your new teammates and maintain compliance every step of the way. Book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
