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Hiring in Lebanon

Hiring employees compliantly in Lebanon means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Lebanon so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Lebanon; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Need assistance hiring in Lebanon? Contact us about our International EOR  Service

Labor Laws in Lebanon

Employee Probation Period

  • The maximum probationary period is of 3 months.

Annual Leave in Lebanon

  • Full time employees are entitled to 15 days paid vacation at the end of their first year of employment. 
  • The employee can accumulate two annual leave periods.
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Holidays in Lebanon

New Year’s Day 1st January
Orthodox Christmas Day 6th January
Saint Maroun's Day 9th February
Rafik Hariri Memorial Day 14th February
Annunciation Day 25th March
Good Friday 10th April
Easter Sunday 12th April
Good Friday (Eastern) 17th April
Orthodox Easter 19th April
Labor Day 1st May
Martyrs' Day 6th May
Liberation Day 14th May
Eid al-Fitr  
Eid al-Adha  
Assumption of Mary 15th August
Islamic New Year  
Ashura  
Prophet's Birthday  
Lebanese Independence Day 22nd November
Christmas Day 25th December

 

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Maternity Leave Lebanon

  • Lebanese law currently allows women to take up to 10 weeks paid maternity leave

Paternity Leave Lebanon

  • Male employees are entitled to 3 days of paternity leave

Sick Leave in Lebanon

  • Employees who have been working for the same entity for a period exceeding the probation period (three months), are entitled to a paid sick leave as follows: 
  • From three months to two years’ employment: 100% of the salary payable for half a month and 50% of the salary payable for another half month
  • From two to four years’ employment: 100% of the salary payable for one month and 50% of the salary payable for another month. 
  • From four to six years’ employment: 100% of the salary payable for one and a half month and 50% of the salary payable for another one and a half month. 
  • From six to ten years’ employment: 100% of the salary payable for two months and 50% of the salary payable for another two months. 
  • Above ten years’ employment: 100% of the salary payable for two and a half months and 50% of the salary payable for another two and a half months.

Working Hours in Lebanon

  • A normal working day should be 8 hours a day and 48 hours per week

Overtime in Lebanon

  • Overtime is paid for excess hours above 48 working hours per week on the basis of 50% extra payment.
 

Termination of Employment in Lebanon

  • Subject to the conditions set out in the Labor Law, the employer may terminate some or all employment agreements where required to do so due to force majeure or economic or technical circumstances.
  • Moreover, the employer may unilaterally terminate an employment contract without prior notice or severance pay in certain cases, including following:
    • The employee fakes his or her nationality;
    • The employer is dissatisfied with the employee's performance during the three-month probation period;
    • The employee is found to have committed a willfully negligent act or omission aimed at harming the material interests of the employer, provided that the employer has notified the Ministry of Labor in writing of such violation within three days of its verification;
    • The employee, despite written warnings, commits a serious violation of the employer's internal regulations three times in a given year;
    • The employee is absent without valid excuse for more than 15 days or more than seven consecutive days in a given year;
    • The employee is sentenced to imprisonment for at least a year for committing a felony or has committed a misdemeanor in the workplace during the course of his or her work; or
    • The employee assaults the employer or the manager in the workplace.
  • Otherwise, prior written notice of termination must be served.
  • The employee may require clarification as to the reasons for termination.
  • The termination of an employment contract should not be unfair or abusive.

Notice Period in Lebanon

  • The length of notice is specified by law and cannot be reduced. It varies with the length of the employee’s employment:
    • Under three years: One-month prior notice. 
    • Three years to six years: Two months’ prior notice. 
    • Six years to twelve years: Three months’ prior notice. 
    • Over twelve years: Four months’ prior notice.

Severance in Lebanon

  • Severance pay is as follows: -
    • 1 month's wage for every year of service
    • Half a month's wage if length of service is less than 1 year
    • The maximum severance pay is 10 months wages.
  • The assessment of severance pay should take into consideration:
    • the nature of the work;
    • the employee's age;
    • the duration of employment;
    • the employee's health and family status;
    • the materiality of the damage; and
    • any misuse of the termination right.

Lebanon Salary and Wages

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13 / 14th Month Salary in Lebanon

  • No
  • There is no statutory requirement to pay the 13th or the 14th month salary.
  • There is no evidence that bonuses are customary.
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Income Tax in Lebanon

  • According to the principle of territoriality, taxes on salaries are due in Lebanon if one of the following conditions is met:
    • The beneficiary of the salary is resident in Lebanon, regardless of the source of funding.
    • The services that triggered the income are executed on Lebanese territory or have contributed to the welfare of a company located in Lebanon, even though the source of funding is outside Lebanon.
    • The source of funding is in Lebanon, regardless of where the beneficiary resides or where the effort was made.
  • Personal income tax (PIT) is levied on wages and salaries at progressive rates.
  • The tax rates are given below: -

Income Tax Rate

Taxable Income

Rate (%)

Up to LBP 9,000,000 4%
LBP 9,000,001–LBP 24,000,000 7%
LBP 24,000,001–LBP 54,000,000 12%
LBP 54,000,001–LBP 104,000,000 16%
LBP 104,000,001–LBP 225,000,000 21%
Over LBP 225,000,000 25%
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Social Security in Lebanon

  • Social security contributions are the following:
    • Borne by the employer: 8% for the maternity and sickness benefit schemes, on a maximum base of LBP 5.6 million (amounting to LBP 448,000 as a maximum per month), and 6% for the family benefit schemes, on a maximum base of LBP 3.425 million (amounting to LBP 205,500 as a maximum per month), in addition to 8.5% of total annual earnings for the end-of-service indemnity, with no ceiling.
    • Borne by the employee: 3% for the medical scheme, on a maximum base of LBP 5.6 million (amounting to LBP 168,000 as a maximum per month).
  • Salaries of foreign staff are normally subject to all contributions, except those for the end-of-service indemnity fund.
  • However, foreign employees do not receive the family allowance benefits nor do they benefit from the medical reimbursements.

Contribution

Employer

Employee

Social Security: -

 

-

Maternity and Sickness Benefit Scheme

8%

-

Family Benefit Scheme

6%

-

End of service indemnity

8.5%

-

Medical Scheme

 

3%

Immigration Lebanon

  • All expatriates working in Lebanon must have a work permit and a residence permit.
  • Such permits may be issued only at the request of an employer.
  • To obtain a work permit, the following items must be submitted:
    • A special work permit application completed and signed by the applicant and the employer.
    • A list of the names of the foreign employees (if any) at the office of the employer that must be signed and sealed by the employer. 
    • The address of the employer. 
    • The passport or the identity card of the expatriate. The Minister of Labor retains a photocopy of this document. 
    • A medical report evidencing that the expatriate is free from epidemic diseases. 
    • A photocopy of the employer’s registration in Lebanon. 
    • A list of authorized signatures of the employer. 
    • A certified copy of the employment contract entered into between the employer and the expatriate. 
    • A quittance (discharge or clearance certificate) issued by the Social Security National Fund.
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Type of Visa/Permit

Documentation

Validity

Eligibility

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Work Permit

  • A special work permit application completed and signed by the applicant and the employer.
  • A list of the names of the foreign employees (if any) at the office of the employer that must be signed and sealed by the employer.
  • The address of the employer.
  • The passport or the identity card of the expatriate. The Minister of Labor retains a photocopy of this document.
  • A medical report evidencing that the expatriate is free from epidemic diseases.
  • A photocopy of the employer’s registration in Lebanon.
  • A list of authorized signatures of the employer.
  • A certified copy of the employment contract entered into between the employer and the expatriate.
  • A quittance (discharge or clearance certificate) issued by the Social Security National Fund.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2 years (can be renewed)

  • All expatriates working in Lebanon must have a work permit

 

 

 

 

 

 

 

Residence Permit

  • Passport
  • Birth certificate
  • Marriage certificate
  • Recent police statement of the individual’s criminal record.
  • Completed Application form



 

 

 

 

  • 1 year (temporary);
  • 3 years (permanent)
  • In order to be issued with a temporary residence permit in Lebanon to work in the country, the employee has to present a job offer from a company which is located in Lebanon.
  • Foreigners who are at least 50 years old can apply for a permanent residence permit (visa) in Lebanon if they can prove they have a pension of LBP 3,000,000 (USD 2,000) per month and that they will transfer it into the country on a monthly basis.
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Value Added Tax (VAT) in Lebanon

  • The standard VAT rate in Lebanon is 11%. 
  • Unless specifically exempt, VAT is levied on all commercial transactions undertaken by business entities.

VAT

Standard Rate

Group 1083

10%

Exempt Group 1083 0%
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Mandatory Benefits in Lebanon

  • These are mandatory benefits as postulated by law
  • These include probationary period, annual leave, public holidays, sick leave, maternity leave, paternity leave, overtime pay, notice period, and severance pay
  • Statutory benefits also include social security benefits
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Mandatory Benefits Overview

  • Probationary Period

  • Annual Leave

  • Public Holidays

  • Maternity Leave

  • Paternity Leave

  • Sick Leave

  • Overtime Pay

  • Notice Period

  • Severance Pay

  • Social Security Benefits

Payments And Invoicing 

  • The fiscal year is the calendar year.
  • Income derived from personal business
  • The deadline for filing tax returns for those taxed on real profits is before 1 April of the following year. 
  • For those taxed on a fixed lump-sum basis, the deadline is before 1 February of the following year.
  • It is the employer's responsibility to declare the payroll tax to the authorities on a quarterly basis during the first 15 days of the month following the end of the quarter. 
  • An annual declaration is also due by 28 February of the following year.
  • Tax on moveable capital income is withheld at source by the relevant company or organization and is to be declared within one month of the declaration of any dividends, interest, or share revenue, or after the maturity of interest on bonds.
  • If taxpayers fail to submit a tax return, realization penalties will be due.
  • The same deadlines for tax returns apply for tax payments.
  • If taxpayers fail to make payment, late payment penalties will be due.

Payroll Accrual in Lebanon

Country Accruals Additional Information

Social security 14.00%
Maternity 40days
Vacations 10.14%
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Description

Social security contributions are the following: Borne by the employer: 8% for the maternity and sickness benefit schemes, on a maximum base of LBP 2.5 million (amounting to LBP 200,000 as a maximum per month), and 6% for the family benefit schemes, on a maximum base of LBP 1.5 million (amounting to LBP 90,000 as a maximum per month), in addition to 8.5% of total annual earnings for the end-of-service indemnity, with no ceiling. Borne by the employee: 3% for the medical scheme, on a maximum base of LBP 2.5 million (amounting to LBP 75,000 as a maximum per month). Salaries of foreign staff are normally subject to all contributions, except those for the end-of-service indemnity fund. However, foreign employees do not receive the family allowance benefits nor do they benefit from the medical reimbursements. The Ministry of Labour legislated a Decision no. 224, dated 12 July 2017, giving the right for the insured whose mandatory membership in the National Social Security Fund is terminated due to retirement (age 60 to 64) or due to permanent disability to benefit from the sickness and maternity scheme in accordance with the terms and conditions of the insured workers.

Payroll Accruals Additional Information

 

 

Employment Accruals

Annual Leave Full time employees are entitled to 15 days paid vacation at the end of their first year of employment. This equals 4.1% (15/365 days) of annual income

Maternity Leave Lebanese law currently allows women to take up to 10 weeks paid maternity leave  This equals 19.23% (10/52 weeks) of annual income

Paternity Leave Male employees are entitled to 3 days of paternity leave  This equals 0.82% (3/365 days) of annual income

Sick Leave Employees who have been working for the same entity for a period exceeding the probation period (three months), are entitled to a paid sick leave as follows:

  • From three months to two years’ employment: 100% of the salary payable for half a month and 50% of the salary payable for another half month
  • From two to four years’ employment: 100% of the salary payable for one month and 50% of the salary payable for another month.
This equals 4.16% (0.5/12 months). Plus 50% of 4.16%
Overtime Overtime is paid for excess hours above 48 working hours per week on the basis of 50% extra payment. Depends on the number of overtime hours worked
Severance In case of abusive or unfair dismissal, the employee is entitled to severance pay from the employer in an amount equivalent to between two and 12 months' wages. Subjective
Social Security Employers must make the following contributions: - Maternity and Sickness Benefit Scheme 8%; Family Benefit Scheme 6%; End of service indemnity 8.5%  This equals 22.5% of annual income

Accrued Benefits in Lebanon

Christmas Bonus % 0%
Christmas Bonus Over Vacations % 0%
Severance per Year%

Employees are entitled to severance pay equal to one month's pay after completion of one year of employment (8.33% of annual salary)

8.33% of annual salary
Vacations %

Full time employees are entitled to 15 days paid vacation at the end of their first year of employment (4.12% of annual salary)

4.12%
Of annual
salary
Notice %

Employees are entitled to 30 days of notice period for one year of service or more (8.24%)

8.24%
Christmas Bonus Over Notifications % 0%
Vacations Plus % 0%

Total percentage of Salary (yearly)

The total employment accruals as a percentage of salary per anum are equal to 20.78%

20.78%

Why use Global Expansion to hire in Lebanon

Establishing a branch office or subsidiary in Lebanon can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Lebanon labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Lebanon law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Lebanon. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Lebanon Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.

 

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