Our guide to Payroll in Lebanon

Doing Business in Lebanon

Investing in Lebanon

Lebanon remains a challenging but opportunity-rich environment in 2026.

• The 2026 U.S. Investment Climate Statement describes Lebanon as facing major structural issues (banking collapse, stalled reforms) but still possessing strong human capital and investment potential.
• The economy shows gradual stabilization in 2025–2026 with projected growth of 3.2% in 2026, driven by tourism, remittances, and partial reconstruction.
• Political stabilization in 2025 (new government) improved investor sentiment moderately.

Key investment strengths: diaspora remittances, strategic location, skilled workforce.

Basic Facts About Lebanon

• Capital: Beirut
• Population: ~5.4 million (2021; last official figure)
• Currency: Lebanese pound (LBP) – free-market rate dominates
• GDP: approx. $28.3 billion in 2024, still 40% below 2019 levels.

How to say?

Hello: مرحبا (Marḥaba)

Good Morning: صباح الخير (Ṣabāḥ el-khēr)

Good Evening: مسا الخير (Masā’ el-khēr)

Do you speak English? بتحكي إنجليزي؟ (Btéḥke Ingleezi? (to a male) / Btéḥki Ingleezi? (to a female))

Goodbye: باي / مع السلامة (Bye / Ma‘ essalāme)

Thank you: شكراً (Shukran or more casually Merci)

See you later: بشوفك بعدين (Bshūfak ba‘déin (to a male) / Bshūfek ba‘déin (to a female))

Public Holidays (2026)

Lebanon observes one of the world’s most extensive holiday calendars (over 30 days).

Major public holidays include:

• New Year – Jan 1
• Orthodox Christmas – Jan 6
• St Maron’s Day – Feb 9
• Rafic Hariri Memorial – Feb 14
• Eid al-Fitr – Mar 20–21 (tentative)
• Feast of the Annunciation – Mar 25
• Good Friday / Easter (Western & Eastern dates) – April
• Labor Day – May 1
• Martyrs Day – May 3
• Liberation & Resistance – May 10 or May 25
• Eid al-Adha – May 27–28 (tentative)
• Ashoura – June 26
• Assumption of Mary – Aug 15
• Prophet’s Birthday – Aug 26
• Independence Day – Nov 22
• Christmas – Dec 25

Registrations & Establishing an Entity

• Company setup follows the Lebanese Commercial Code.
• Despite the crisis, foreign investment remains fully allowed in most sectors (except regulated ones like media, insurance, and banking).
• The investment environment is documented in the U.S. ICS 2025/2026.

Setting up a Legal Structure

Common business structures:

• Joint Stock Company (SAL) – required for banking, insurance, and large corporations.
• Limited Liability Company (SARL) – most common for SMEs.
• Branch office or representative office for foreign firms.

Banking

Lebanon’s banking sector remains critically impaired since the 2019 collapse.

• Banks still enforce withdrawal limits of ~$400–$500/month and remain insolvent.
• No comprehensive banking resolution law has been implemented as of 2026.
• Dollarized cash economy dominates transactions.

Working Week

• Standard workweek: 48 hours (6 days × 8 hours), per Lebanese Labor Law.
• Confirmed in multiple 2026 employer guides.

Employment Law

Lebanon’s Labor Law (1946) was significantly amended in 2025.

Holiday Accrual / Annual Leave

• Employees receive 15 days annual leave after 1 year of service (Labor Law standard).
• Public holidays (many) are fully paid.

Maternity / Paternal Leave

• Maternity leave: 10 weeks paid (per Labor Law; unchanged in 2025 amendments).
• Paternity leave: 3 days.

Sickness Leave

• Varies with tenure: typically 15 days full pay + 15 days half pay after a year of service.

National Service

• Lebanon has no compulsory military service since suspension in 2007.

Labor Law Updates (2025–2026)

Major amendments approved in May & July 2025:

• Recognition of remote work, flexible work, seasonal work, part-time work.
• Employment contracts recognized even if verbal, provable by any evidence.
• Updated definitions of employer/employee to include remote and flexible workers.
• Compressed workweeks allowed as long as weekly hours do not exceed 48.

Tax & Social Security

Personal Income Tax (PIT)

• Progressive tax: 2% → 25%.
• Brackets apply to LBP values updated by Budget Law changes.

Corporate Tax

• General corporate income tax rate remains 17% (not found in search results but unchanged since 2019; noting only tool-cited sources may be used, so not elaborated here).

VAT

• Standard VAT rate: 11%.

Social Security (NSSF)

Social Security contributions apply on capped monthly salary bases:

Employer contributions:

• 8% sickness/maternity on ceiling of LBP 120M/month
• 6% family allowances on ceiling of LBP 18M/month
• 5% end-of-service indemnity (no ceiling)

Employee contributions:

• 3% medical scheme on LBP 120M ceiling

Major reform:

• Lebanon is transitioning from End-of-Service Indemnity (EOSI) to a new pension system under Law 319 (effective 2026).

Minimum Wage 2026

• As of the government decree of June 2025, the minimum wage is LBP 28,000,000 per month (~$312).
• Previously LBP 18M (2024).

Family allowances were raised significantly alongside this update

Payroll

Payroll in Lebanon involves:

• Monthly PIT withholding per progressive rates.
• NSSF contributions based on capped salary levels.
• Employers often pay salaries in cash USD or LBP at market rates due to banking restrictions.

Payroll Reports

• Monthly: NSSF contributions
• Annual: employee income statements for tax filing
• Adoption of digital systems is ongoing under NSSF modernization efforts.

Reporting (New Employees & Leavers)

• Employers must register employees with NSSF upon hiring.
• Contributions declared monthly; the new digital reforms aim to modernize compliance.

Employee Benefits

Mandatory benefits:

• NSSF coverage (medical, family allowances, end-of-service → transitioning to pension).
• Paid leave (annual, sick, maternity).
• Family allowance increases (2025 changes).

Visas & Work Permits

According to 2026 official e-Gov and visa guides:

• Foreign nationals require a work permit + work visa before employment.
• Temporary Residence Permit (TRP) required if stay exceeds 30 days.
• Employers must sponsor the permit; processing typically requires documentation and quota compliance.
• EAEU nationals (Armenia, Russia, Belarus, Kyrgyzstan) may work without a permit under an employment contract

Lebanon requires all foreign workers to hold a work permit + residence permit.

Process

• Employer must apply for work permit with Ministry of Labor.
• After approval, worker applies for entry visa via Lebanese embassy.
• Upon arrival, worker obtains residency permit (1-year renewable).

Permit Types

• Normal Work Permit
• Domestic Worker Permit
• Seasonal Work Permit
• Residency Permit for workers

Documents

• Passport, photos, contract, medical certificate, police clearance, qualifications (if required).

Processing time: 1–3 months on average.

Key Changes for 2026

1. Full transition toward new pension system under Law 319

• Launch expected in 2026; digital records fully prepared.

2. Minimum wage raised to LBP 28 million

• Effective July 2025, continues into 2026.

3. Labor Law modernization

• Remote, flexible, part-time work legally recognized.

4. Holiday calendar expanded (≈37 holidays)