A new era for Lebanon’s social security

For years, Lebanon’s National Social Security Fund (NSSF) has served as the country’s primary social protection institution for private-sector workers, providing healthcare coverage, family allowances, and end-of-service indemnities. However, the financial collapse that began in 2019 severely weakened the value of workers’ benefits, exposing the shortcomings of a system that relied on a one-time indemnity rather than a sustainable retirement pension.

Today, the Fund is embarking on what its newly elected Chairman of the Board, Bechara Asmar, described as a comprehensive reform process. Speaking to The Beiruter, Asmar outlined a broad roadmap that extends beyond administrative restructuring.

From end-of-service compensation to lifelong pensions

According to Asmar, one of the most significant reforms stems from Law No. 319, adopted by Parliament in December 2023, which establishes a retirement pension system within the NSSF to gradually replace the traditional End-of-Service Indemnity system. The legislation represents one of the most important reforms to Lebanon’s social security framework and restructures the Fund’s governance to facilitate its implementation.

A key implementing decree has already led to the formation of a new Board of Directors consisting of 10 members, replacing the previous 26-member board. Another decree establishes an independent Investment Committee tasked with managing, investing, and protecting the Fund’s financial assets; rather than merely depositing it.

After all, these are not the NSSF’s funds. They belong to the Lebanese people.

Asmar explained that this governance reform is intended to prevent a repeat of the losses suffered during the financial crisis in 2019, when approximately $8 billion in NSSF assets deposited at Banque du Liban (BDL) and commercial banks lost much of their value following the collapse of Lebanon’s banking sector.

Restoring healthcare coverage

While the retirement system represents the long-term structural reform, Asmar stressed that the Fund’s immediate priority is restoring healthcare coverage for insured citizens.

During the economic crisis, beneficiaries were often forced to cover nearly 90% of hospitalization costs out of pocket while the NSSF reimbursed only a fraction of medical expenses. According to Asmar, the new Board aims to reverse this situation by gradually returning to pre-crisis coverage levels, under which the Fund covered approximately 90% of hospitalization expenses and 80% of consultations and medications.

Today, we are working to close this gap and return to the previous system that existed before the crisis.

He described restoring medical benefits as the institution’s most urgent objective, arguing that rebuilding confidence in the NSSF requires improving the services citizens receive today while broader structural reforms are implemented.

Implementing the new retirement system

Asmar considered the Retirement and Social Protection Law the Fund’s second major priority.

The new system replaces a lump-sum end-of-service payment, which lost much of its purchasing power during the financial crisis, with a monthly retirement pension that continues throughout retirement and can be transferred to eligible heirs after the beneficiary’s death.

Under the law, workers aged 49 and under are required to join the new pension system, while those between the ages of 49 and the retirement age of 64 may choose either to remain under the existing End-of-Service Indemnity system or transition to the new retirement scheme.

Asmar added that the legislation is designed to extend beyond workers currently residing in Lebanon. Subject to future implementing decrees, Lebanese citizens employed abroad, including those working in Gulf countries, could voluntarily join the retirement system and benefit upon returning to Lebanon after reaching retirement age.

This Retirement and Social Protection Law covers broad segments of the Lebanese population, residing both inside the country and abroad.

Addressing losses suffered during the financial crisis

Another major challenge identified by Asmar concerns workers who retired or left their jobs between 2019 and 2024.

There is currently a direction within the NSSF to explore ways of restoring compensation for these individuals.

Many received end-of-service indemnities that had become nearly worthless because of the dramatic depreciation of the Lebanese pound. To address this issue, the NSSF is studying mechanisms to provide supplementary compensation to affected beneficiaries.

However, Asmar acknowledged that the Fund cannot finance such compensation on its own. Instead, any repayment plan would require financial support from the Lebanese state and would likely be implemented gradually.

He also highlighted the ongoing efforts to recover between $8 billion and $10 billion in NSSF funds held at BDL and commercial banks. He noted that Law No. 210 classifies these assets as privileged debts, strengthening the Fund’s legal position in any future financial settlement and reinforcing the argument that these resources ultimately belong to Lebanese contributors rather than the institution itself.

Modernization and expanding social protection

Beyond financial reforms, Asmar identified institutional modernization as another strategic objective.

He highlighted plans to recruit young professionals, strengthen the Fund’s human resources, accelerate digitization, and modernize administrative procedures. According to him, these reforms will be implemented gradually and in line with Lebanon’s current economic realities.

Bringing young professionals into the institution and recruiting a new generation is extremely important.

Asmar also described the transition to the retirement pension system as an important step toward strengthening old-age security for workers covered under Lebanon’s Labor Law. While acknowledging that a universal old-age protection system covering all Lebanese citizens would require substantial financial resources and extensive planning (as it only covers certain individuals), he said the NSSF remains committed to expanding social protection over time.

Understanding Lebanon’s National Social Security Fund

Established under the Social Security Law implemented in 1963, Lebanon’s NSSF is the country’s principal social insurance institution for private-sector workers. It provides healthcare and maternity coverage, family and educational allowances, and, until the adoption of Law No. 319, the End-of-Service Indemnity system. Over the years, the NSSF has become a cornerstone of Lebanon’s social protection framework despite facing repeated financial, administrative, and governance challenges.

The Fund’s long-term vision focuses on strengthening its ability to deliver high-quality social protection while expanding coverage to broader segments of Lebanese society. Its mission focuses on ensuring financial sustainability, modernizing administrative systems, improving governance and transparency, digitizing services, and extending protection to additional categories of workers. These objectives align closely with the broader reforms introduced under Law No. 319, which aims to establish a sustainable pension system that meets international social security standards while reinforcing the NSSF’s governance and financial resilience.

Whether these objectives are fully realized will ultimately depend on sustained political commitment, sound governance, and the successful implementation of the reforms now underway.