In Lebanon, employees are entitled to a variety of mandatory benefits. These include social security contributions, leave entitlements, and severance pay.

Social Security Contributions

Employers in Lebanon are required by law to enroll their employees in the National Social Security Fund (NSSF). Employee contributions are deducted from their salaries, while employers contribute a matching amount. The total social security contribution is 22.5% of the employee's salary. This contribution covers:

• Medical (for sickness and maternity): 8% (Maximum contribution of LBP 2,500,000)
• Family allowances: 6% (Maximum contribution of LBP 1,500,000)
• End of service allowance: 8.5% (On top of the employee's whole salary)

Leave Entitlements

Lebanon also mandates various leave entitlements for employees:

• Probationary Period: Three months.
• Annual Leave: Minimum of 10 days annually, increasing with tenure.
• Public Holidays: Employees are entitled to paid leave on official public holidays.
• Sick Leave: A minimum amount of paid sick leave is mandated by law.
• Maternity Leave: Female employees are entitled to paid maternity leave.
• Paternity Leave: Paternity leave may also be offered, though not mandatory.

Other Mandatory Benefits

There are other mandatory benefits that employees in Lebanon are entitled to:

• Overtime Pay: Employees must be compensated for working overtime hours at a higher rate than regular pay.
• Notice Period: Both employers and employees are required to provide a notice period before termination of employment.
• Severance Pay: In case of termination, employees are entitled to severance pay based on their length of service.

In Lebanon, many companies go beyond the mandated benefits for employees, offering additional perks to attract and retain top talent.

Health and Wellness

Employers often provide health insurance plans that cover hospitalization, medical consultations, and medication costs for employees and sometimes their dependents. Wellness programs are also common, with companies offering on-site fitness facilities, gym memberships, or sponsoring employee participation in marathons or other sporting events to promote a healthy lifestyle.

Financial Security

Life insurance plans are sometimes provided by employers to offer financial security to the employee's family in case of their passing.

Work-Life Balance

Flexible work arrangements are another optional benefit. This could include telecommuting options, compressed workweeks, or flextime to allow employees to manage their work-life balance more effectively. Some companies offer additional paid time off beyond the mandatory national holidays and vacation allowance. This could include parental leave, sabbaticals, or personal days.

Other Perks

Transportation allowances are often offered by companies, especially those located outside city centers, to help employees commute to work. Employers might provide meal vouchers or offer subsidized meals at the workplace to reduce employee lunch expenses. Some companies offer tuition reimbursement programs or scholarships to help employees pursue further education and enhance their skillsets.

In Lebanon, there's a distinction between health benefits provided through social security contributions and health insurance offered by employers. Lebanese law mandates employers to contribute a portion of their employees' salaries towards social security. This contribution covers a range of benefits, including medical benefits for sickness and maternity. Employers contribute 8% of the employee's salary, capped at LBP 2,500,000 per year. This provides some level of health coverage, but the extent is limited.

Important to Note

The Lebanese social security system is undergoing reforms, and health coverage details may be subject to change. It's recommended to consult the latest information from the Lebanese Ministry of Labor.

Optional Employer-Provided Health Insurance

Many employers in Lebanon offer private health insurance plans that go beyond the basic coverage provided by social security. These plans can vary significantly depending on the company and the chosen plan, but they often cover:

• Hospitalization expenses
• Doctor consultations
• Medications
• Additional benefits may include dental and vision care.

Lebanon's retirement landscape is undergoing a significant transformation. Traditionally, a comprehensive pension system was absent, but a new law offers hope for a more secure future for retirees.

The End-of-Service Indemnity (EOSI)

Previously, the primary retirement benefit for most Lebanese employees in the private sector was the End-of-Service Indemnity (EOSI) administered by the National Social Security Fund (NSSF). This scheme provided a lump-sum payment upon retirement, calculated based on salary and years of service. However, it wasn't a true pension and did not offer a steady income stream throughout retirement.

The New Pension Scheme

In December 2023, a new law established a long-awaited pension scheme within the NSSF. This plan aims to replace the EOSI with a monthly pension for eligible retirees. Here's a breakdown of the key features:

• Eligibility: All mandatory NSSF contributors under the age of 49 at the time of implementation are automatically enrolled. Those aged 49 and above can opt-in voluntarily.
• Contributions: A combined employer-employee contribution of approximately 17-18% of earnings (capped) will be phased in over several years.
• Benefits: The pension amount will be calculated based on individual contributions and credited interest. Early retirement with reduced benefits is an option.

Private Pension Plans

Some employers in Lebanon might offer private pension plans on top of the mandatory contributions to the NSSF. These plans can provide additional retirement income and cater to individual financial goals.