What does a $60,000 hire cost in Lebanon?
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Total annual employer cost
Full cost breakdown
Statutory contributions and typical benefits for an employee in Lebanon at $60,000 base salary.
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Key Takeaways for Hiring in Lebanon
- Employment contracts may be fixed-term or open-ended, with a non-extendable probation period of up to three months.
- Employers contribute approximately 22.5% of payroll toward social security and statutory funds.
- Only two public holidays are legally mandatory in the private sector.
- Employees are entitled to end-of-service indemnity through the National Social Security Fund (NSSF).
Continent
Asia
Capital
Beirut
Currency
Lebanese Pound (LBP)
Language
Arabic
Payroll Cycle
Monthly
Quick Facts for Hiring in Lebanon
Lebanon Employment Contract Overview
Below is the standard structure used to prepare compliant employment contracts in Lebanon, aligned with the Labour Code and local market practice.
- Less than 3 years: 1 month
- 3–6 years: 2 months
- 6–12 years: 3 months
- More than 12 years: 4 months
What Do You Need to Include in a Lebanon Employment Contract?
Here’s what you need to include to stay compliant when drafting an employment contract in Lebanon.
Employee Information
- Full name
- ID number
- Role / Job title
- Start date
- Contract duration
- Working hours
- Probation and notice conditions
- Termination provisions
- Compensation details
How Does Payroll Work in Lebanon?
Average employer cost
22.5%
Payroll in Lebanon involves calculating gross salary, deducting employee taxes and social security contributions, and remitting employer-side contributions to the relevant government authorities.
Salary Structure
Salaries in Lebanon are typically paid monthly. Employers are responsible for withholding income tax and employee social contributions at source.
Employer Taxes & Contributions
Employers in Lebanon must contribute to social security and other statutory funds on top of the employee’s gross salary. Specific rates are set by the relevant government authority.
Employee Deductions
Employee-side deductions include income tax and employee social security contributions. The exact rates depend on the employee’s salary level and applicable tax brackets.
Mandatory Employee Benefits in Lebanon
| Benefits | Provider | Funded Through | Notes |
|---|---|---|---|
| Health Insurance | Government |
Payroll Contributions |
Provides medical coverage for employees and their dependents under the National Social Security Fund. |
| Pension/Social Security | Government |
Payroll Contributions |
End-of-Service Indemnity: Paid to employees upon termination or retirement as a statutory severance fund. |
| Other Statutory Benefits | Government |
Payroll Contributions |
Family Allowances: Financial support for employees’ dependent children. |
Leave And Holiday Entitlement In Lebanon
Lebanese labour law sets clear minimum standards for employee leave, with additional flexibility for employers to enhance benefits through company policy or employment contracts.
Annual Leave
Employees are entitled to a minimum of 15 working days of paid annual leave after completing one full year of service. This leave is fully funded by the employer.
While employers typically determine the timing of annual leave to ensure business continuity, employees cannot be dismissed or served notice during their leave period. If the employment relationship ends, any unused annual leave is generally compensated in accordance with the Labour Code.
Public Holidays
The Labour Code mandates two compulsory public holidays for private-sector employees:
-
Labor Day – May 1
-
Independence Day – November 22
These days are fully paid. Other national or religious holidays may be observed at the employer’s discretion and are not legally required to be paid.
Sick Leave
Employees are entitled to paid sick leave. Initially, sick pay is covered by the employer, with the National Social Security Fund (NSSF) potentially reimbursing part of the cost depending on the employee’s contribution history and the duration of the illness.
Sick leave applies to temporary incapacity caused by illness or injury, and employers are prohibited from penalizing employees for taking legitimate sick leave.
Maternity Leave
Female employees are entitled to a minimum of 70 days of maternity leave. Partial wage coverage is funded through NSSF contributions, while the employer guarantees job protection during the leave period.
Employees have the right to return to the same position or an equivalent role after maternity leave, and the law explicitly protects employees from dismissal due to pregnancy or maternity.
Paternity Leave
Paternity leave is not explicitly mandated under Lebanese Labour Law. However, many employers voluntarily provide 3 to 7 days of paid leave to fathers following the birth of a child. Availability depends on company policy and contractual terms.
Other Types of Leave
Other forms of leave are not generally required by law, but employers may offer additional leave types as part of internal policies or individual employment agreements.
Termination and Offboarding in Lebanon
Termination in Lebanon is governed by strict statutory rules covering notice, severance, and documentation to protect both employer and employee rights.
| Type | Possible? |
|---|---|
| Termination for Cause (poor performance, misconduct, etc.) | Yes |
| Termination without Cause | Yes |
| Mutual Termination Agreement (MTA) | Yes |
| Redundancy | Not possible under the EOR setup |
Lebanon Employee Resignation
Employees in Lebanon have the right to resign at any time, provided statutory notice requirements are respected.
Notice
Form
Resignation should ideally be submitted in writing to the employer, although oral resignation is legally recognized.
Notice period
The required notice depends on the employee’s continuous service:
-
Less than 3 years: 1 month
-
3–6 years: 2 months
-
6–12 years: 3 months
-
More than 12 years: 4 months Both the employer and the employee are required to respect these notice periods.
Payment in lieu of notice or notice waiver
Employees may request to waive the notice period, or employers may offer payment in lieu of notice, calculated based on the employee’s gross salary corresponding to the required notice duration.
End-of-Service Benefits
Severance/Gratuity
Employees who have completed at least one year of service are entitled to an end-of-service indemnity (gratuity).
For private-sector employees, this is usually 8.5% of gross monthly salary contributed monthly to the NSSF. The accumulated amount is paid at the end of employment and calculated based on the number of years of service, with full payment for completed months of service.
Other Benefits
-
Accrued but unused annual leave must be paid out in full
-
Outstanding salary up to the resignation date is payable
-
Full notice period pay
-
Other benefits (bonuses, allowances) depend on the employment contract and company policy but are generally due if earned
Termination Documentation
-
Final settlement statement showing total salary, deductions, NSSF contributions, and end-of-service benefits
-
A resignation acceptance letter from the employer may be issued
-
Copies of payslips, social security records, and leave balances are often provided for legal and personal records
Employer Termination With Cause in Lebanon
Termination with cause must be properly evidenced and documented to be considered valid. Even then, employees may still challenge the dismissal as arbitrary.
Acceptable grounds
Article 74 of the Labour Law allows an employer to terminate an employment contract without indemnity and without prior notice in specific cases, including:
-
Acquisition of a new nationality different from the employee’s original nationality
-
Unsatisfactory trainee performance during the first three months of service
-
Intentional misconduct or deliberate negligence causing material damage to the employer (with written notification to the Social Affairs Service within 3 days)
-
Repeated serious violations of internal regulations (three violations within one year despite written warnings)
-
Unjustified absence exceeding 15 days in one year or more than 7 consecutive days
-
The employee must justify the absence within 24 hours
-
The employer must issue a written warning specifying unjustified days
-
Criminal conviction resulting in imprisonment of one year or more, or offenses committed at the workplace
-
Unprovoked assault against the employer or the employer’s representative
Notice
Form
Termination should ideally be documented in writing, specifying the grounds
Notice period
Immediate termination is permitted; no notice is required
Payment in lieu of notice or notice waiver
Not applicable.
End-of-Service Benefits
Severance
Employees dismissed for serious misconduct are typically not entitled to severance pay, unless otherwise specified in the employment contract.
Other Benefits
-
Payment of unpaid wages
-
Compensation for unused annual leave
-
Any other statutory rights accrued up to the termination date
Termination Documentation
Written dismissal record stating the specific reasons for immediate termination
Employer Termination Without Cause in Lebanon
Termination without cause may occur for reasons unrelated to employee misconduct but must strictly comply with Labour Code requirements.
Notice
Form
Written notice is required
Notice period
-
Less than 3 years: 1 month
-
3–6 years: 2 months
-
6–12 years: 3 months
-
More than 12 years: 4 months
Payment in lieu of notice or notice waiver
The employer may pay salary instead of requiring the employee to work during the notice period.
End-of-Service Benefits
Severance
Employees terminated without cause are entitled to end-of-service indemnity, typically calculated as 1 month’s salary for each year of service for indefinite contracts.
Other Benefits
-
Unpaid wages
-
Unused annual leave
-
Other contractual benefits due up to termination
Termination Documentation
-
Written termination letter stating dismissal without cause
-
Notice period details or payment in lieu
Mutual Termination Agreements in Lebanon
Lebanese Labour Law allows employers and employees to mutually agree to end an employment relationship, provided consent is voluntary and terms are documented in writing.
Notice
Form
Written agreement signed by both parties
Notice period
Negotiable
Waiver of notice
Allowed if explicitly stated in the agreement
End-of-Service Benefits
Severance
Severance terms are flexible and may include full, partial, or lump-sum payments, depending on what the parties agree.
Other Benefits
-
Accrued wages
-
Unused annual leave
-
Other contractual or negotiated benefits
Termination Documentation
A mutual termination agreement should clearly include:
-
Employee and employer details
-
Effective termination date
-
Notice period or waiver
-
Settlement of end-of-service benefits
-
Signatures of both parties
Offboarding Process for theEnd of Fixed-Term Contracts in Lebanon
If the Fixed-Term Contract Ends Normally
Notice
-
No advance notice is generally required unless specified in the contract
-
If the employee works one day beyond expiry, the contract converts to unlimited duration
-
Non-renewal should be communicated at least 15 days in advance
End-of-Service Benefits
Other Benefits
- Unused annual leave
- Accrued wages
- Any contractual benefits due
If the Employer Terminates Early
Notice
- Early termination is allowed only for legitimate reasons under Article 74
- If terminated without cause, notice or payment in lieu applies
End-of-Service Benefits
Severance/Gratuity
- Full severance as if the contract had been completed
- Reduced or no severance if termination is for valid cause
Other Benefits
- Accrued wages
- Unused annual leave
- Contractual entitlements
Final Payment Timing & Immigration and Visa Compliance in Lebanon
Final Payment Deadline
Under Articles 56 – 57 and 60 – 61 of the Lebanese Labour Code, all wages, accrued benefits, and end-of-service indemnities must be paid immediately upon termination.
Penalty
Late payment may entitle the employee to:
- Wages for the delay period
- Compensation for abusive or unlawful dismissal, where applicable
Visa and Immigration Compliance
Upon termination, employers should coordinate with the employee to cancel or adjust sponsorship in compliance with General Security (DGGS) and Ministry of Labor regulations. This may include formally canceling work permits or residence status once employment ends.
Supporting Guides
Frequently Asked Questions
What are the notice and severance rules if I need to let someone go?
Notice scales with tenure: one month for under three years, two months for three to six years, three months for six to twelve years, and four months for over twelve years. Employees terminated without cause are entitled to end-of-service indemnity, typically calculated as one month’s salary per year of service. All final payments must be made immediately upon termination.
Do I need to set up a legal entity to hire in Lebanon?
Not if you use an Employer of Record like RemotePass. An EOR acts as the legal employer, handling payroll, compliance, and contracts while you manage day-to-day work.
What’s the minimum wage in Lebanon?
USD 314 per month. Payroll is typically processed in US dollars.
How many public holidays are mandatory in Lebanon?
Only two public holidays are legally mandatory in the private sector: Labor Day (May 1) and Independence Day (November 22). Other national or religious holidays may be observed at the employer’s discretion but are not legally required to be paid.
What is end-of-service indemnity?
End-of-service indemnity is a statutory severance fund managed through the National Social Security Fund (NSSF). Employers contribute 8.5% of gross monthly salary to the fund, which accumulates and is paid to employees upon termination or retirement after at least one year of service.
What happens to work permits when employment ends?
Employers should coordinate with the employee to cancel or adjust sponsorship through General Security (DGGS) and Ministry of Labor. This includes formally canceling work permits or residence status once employment ends.
