Is Lebanon’s latest bid to support workers enough?

Since 2019, Lebanon has witnessed severe financial and economic crises that have significantly impacted its already struggling working class. Yet, the country’s authorities have repeatedly failed to address their grievances and challenges, which have continuously grown and become a burden on them as well as Beirut’s overall economy.

In this context, the Lebanese government has recently taken a series of measures aimed at easing mounting economic pressures on workers and preventing a wave of nationwide strikes, approving increases to transport allowances and family benefits while advancing financial support for public transport drivers.

The decisions, adopted following a meeting of the Index Committee (Committee of the Cost of Living Index) chaired by Minister of Labor Mohammad Haidar, come amid growing demands from labor unions, public sector employees, teachers, military personnel, and transport syndicates for higher wages and broader social protections.

Transport allowance linked to fuel prices

The most significant outcome of the Index Committee meeting was the agreement to calculate the daily transport allowance based on the cost of five liters of gasoline.

Under the new mechanism, the allowance will fluctuate according to average fuel prices through a formula to be developed in coordination with the Ministry of Energy and Water. The agreement establishes a minimum daily allowance of LBP 500,000, even if fuel prices decline, and a maximum ceiling of LBP 800,000 should prices rise sharply.

Previously, the daily transport allowance stood at LBP 450,000, a figure that had become increasingly inadequate following fluctuations in fuel prices and transportation costs.

Minister of Labor Mohammad Haidar said the agreement seeks to preserve workers’ purchasing power while ensuring that the transport allowance remains responsive to market conditions rather than fixed at a single value.

The dynamic pricing mechanism is intended to reduce the need for repeated administrative revisions whenever fuel prices change significantly.

Family benefits increased by 86%

The committee also agreed to increase family compensation paid through Lebanon’s social security system by approximately 86%.

Under the new arrangement, family benefits for a spouse will rise to around LBP 3.1 million, while compensation for each child will increase to approximately LBP 1.655 million. Other reports indicated that the revised structure raises the spouse allowance from LBP 2.1 million to roughly LBP 3 million and the child allowance from LBP 1.155 million to around LBP 1.6 million, covering up to five children.

The increases will require the issuance of an official decree before entering into force. The proposal is expected to be submitted to the National Social Security Fund’s Board of Directors before being referred to the relevant authorities for final approval.

Minimum wage discussions continue

Despite progress on transport allowances and family benefits, no final agreement was reached regarding an increase in Lebanon’s minimum wage.

Haidar confirmed that the Index Committee will continue holding regular meetings to determine an acceptable figure, with a deadline of one month to finalize a proposal before referring it to the Council of Ministers.

Negotiations are expected to continue between representatives of workers, employers, and the government, reflecting differing views over how much businesses can absorb while preserving employment.

Employers and labor unions welcome the agreement

The committee’s decisions received generally positive reactions from both labor representatives and employers, despite difficult negotiations.

General Secretary of the Lebanese Economic Organizations Nicolas Chammas highlighted that employers remain committed to protecting both businesses and employees but argued that the private sector should not bear sole responsibility for inflation, taxation, or the broader economic crisis.

Meanwhile, General Confederation of Lebanese Workers (GCLW) President Bechara Asmar described the agreement as a positive step for employees covered by Lebanon’s Labor Law, while noting that some categories of workers remain outside its scope.

The measures also prompted several unions to reconsider previously announced strike plans on Wednesday, pending further consultations on their remaining demands.

Public transport drivers receive financial support

Separately, the Ministry of Finance reached an agreement with representatives of Lebanon’s land transport sector to begin procedures for allocating budget funding to support eligible public transport drivers.

The plan provides monthly assistance of LBP 12 million to qualifying public drivers for the period extending from 1 October 2026 until 31 December 2026 as a first phase.

The agreement was reached during a meeting attended by senior officials from the Ministry of Finance, the Directorate General of Land and Maritime Transport, the Vehicle Registration Authority, and representatives of Lebanon’s transport unions.

However, eligibility for the financial assistance will be conditional upon drivers complying with the official passenger fare issued by the Ministry of Public Works and Transport on 15 April 2026. Drivers found violating the official tariff risk losing access to the monthly payments.

Officials also agreed that the implementation mechanism will be finalized through a joint decision by the Ministries of Finance and Public Works and Transport.

Plans to modernize Lebanon’s transport fleet

The agreement also outlines broader reforms aimed at modernizing Lebanon’s public transport sector.

Authorities plan to prepare draft legislation introducing tax and customs exemptions for new passenger transport vehicles, encouraging drivers and operators to replace aging fleets with newer vehicles.

Transport union leader Bassam Tleis also indicated that the government had accepted approximately 90% of the demands submitted by truck operators, including issues related to Lebanese labor, cross-border transport, domestic and international freight operations, and administrative procedures involving the Port of Beirut.

While welcoming the agreements, Tleis stressed that implementation remains the key concern, emphasizing that transport unions are primarily seeking concrete execution rather than additional promises.

The decisions adopted by the Index Committee and the Ministry of Finance represent one of the government’s most significant attempts this year to address the growing burden of living costs on workers and transport operators. Nevertheless, major issues remain unresolved, particularly the question of raising the minimum wage and ensuring that approved measures are implemented without delay.