Employer of Record in Lebanon

Businesses can only operate smoothly in Lebanon if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Lebanon below, to avoid any compliance issues.

Employment Contract Requirements

While not legally mandated, employers in Lebanon should establish a written employment contract when hiring. Although the Lebanese Labour Code does not specify minimum requirements for contract terms, customary elements to include are:

• Identification of both parties
• Commencement date
• Job responsibilities and duties
• Employee's salary and other benefits

Onboarding Process

We can help you get a new employee started in Lebanon quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Lebanon

Employees are entitled to a maximum of 48 hours of work per week and must receive a minimum of 36 consecutive hours of weekly rest, as per labor codes.

Overtime in Lebanon

Overtime exceeding 48 hours per week is compensated with a 50% additional payment.

Probation Period in Lebanon

The probationary period cannot exceed three months, during which employees are ineligible for any leave, including sick leave, and any leave taken during this period will be unpaid.

Fiscal Year in Lebanon

January 1st - December 31st is the 12-month accounting period that businesses in Lebanon use for financial and tax reporting purposes.

Payroll Cycle in Lebanon

The payroll cycle in Lebanon is usually monthly, with employees being paid at the end of the month.

Minimum Wage in Lebanon

The minimum wage for employees in Lebanon is typically 102,500 LBP per hour, amounting to ~18,000,000 LBPP per month for a typical 40 hour work week.

Bonus Payments in Lebanon

There is no legal requirement to offer the 13th or 14th-month salary in Lebanon.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 22.5% on top of the employee salary in Lebanon.

Employee Payroll Tax Contributions

In Lebanon , the typical estimation for employee payroll contributions cost is around 3%.

Individual Income Tax Contributions

Personal income tax (PIT) applies to wages and salaries with progressive rates from 2% to 25% as outlined below:

Pension in Lebanon

Employers contribute 8.5% to the National Social Security Fund (NSSF) for the End of Service benefit, covering pensions, work-related accidents, and diseases. The NSSF provides insurance for sickness, maternity care, and family allowances. Employees reaching 60 with 20 years of service can opt for early retirement, receiving a one-time end-of-service compensation. However, employees no longer receive NSSF benefits once they reach 64.

Mandatory Leave Entitlement in Lebanon

The annual leave entitlement in Lebanon is 15 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Lebanon

Lebanon observes 20 public holidays in a year.

Paid Time Off in Lebanon

After one year of service, full-time employees are entitled to 15 days of paid annual leave.

Maternity Leave In Lebanon

Female employees in Lebanon are entitled to 10 weeks of fully paid maternity leave.

Paternity Leave In Lebanon

Fathers are entitled to 3 days of paternity leave.

Sick Leave In Lebanon

Upon completing the three-month probation period, employees in Lebanon are eligible for paid sick leave based on their length of employment:

• For service between 3 months to 2 years: 100% salary for half a month and 50% for another half month
• For service between 2 to 4 years: 100% salary for one month and 50% for another month
• For service between 4 to 6 years: 100% salary for one and a half months and 50% for another one and a half months
• For service between 6 to 10 years: 100% salary for two months and 50% for another two months
• For service over 10 years: 100% salary for two and a half months and 50% for another two and a half months

Parental Leave In Lebanon

Lebanon's labor laws do not provide for shared parental leave that can be divided between parents.

Termination Process in Lebanon

In addition to standard termination scenarios like contract expiration and resignation, an employer can unilaterally terminate employment for reasons such as:

• Economic reasons or restructuring leading to redundancy
• Employee underperformance
• Unexcused absence from work
• Gross misconduct

Notice Period in Lebanon

No notice is required for "non-abusive" terminations, as outlined in Articles 74 and 75 of the Labour Code. Examples include providing false information, negligent conduct causing damages, multiple rule violations, assault, or employer deception.Notice periods for "abusive" terminations, which lack justification under Articles 74 and 75, are based on service length:

• Under 3 years: 1 month
• 3 to 6 years: 2 months
• 6 to 12 years: 3 months
• Over 12 years: 4 months

Severance in Lebanon

Abusive terminations result in an additional Indemnity being payable. This ranges from 2 to 12 months' salary and is determined by factors such as the nature of the work, the employee's age, tenure, and the severity of misconduct leading to dismissal.