Lebanon: Transport Allowance Increase

Lebanon: Transport Allowance Increase

On 8th September 2021, President of Lebanon, Michel Aoun, signed Decree No. 8318 to increase the daily transportation allowance for private sector employees from LBP 8,000 to LBP 24,000.

The amendment, which officially came into effect on 1st October 2021, is a mandatory allowance granted by employers to their employees for each working day as per the Labor Law. These earnings are free from income tax and social security contributions.

That being said, if the transportation allowance paid to employees exceeds LBP 24,000 per working day, that additional amount is subject to income tax, employee social security contributions and employer social security contributions.

Interested in doing business in Lebanon? Find out everything you need to know about payroll, tax, social security, employee benefits, work permits, employment law and more in activpayroll’s Guide to Doing Business in Lebanon. This is available as a free PDF to download.

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