Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
An employer of record in Lebanon manages various aspects of employment, including payroll cycle, employer and employee contributions, minimum wage, hiring procedures for employees, contractors, and expats, background checks, employment contracts, onboarding, employee benefits, social security, healthcare and insurance, leave policy, public holidays, work permit and work visa requirements, probation period, notice period, termination and severance procedures, and personal income tax obligations.
| Overview | |
| Continent | Asia |
| Country | Lebanon |
| Capital | Beirut |
| Time zone | UTC+02:00 (EET) |
| Total Time zones | 1 |
| Working hours per week | 40 |
| Working week | Monday–Friday |
| Typical hours worked | 8, Most of the people have a six-day workweek, with Saturday as a partial workday. |
| Personal Tax filing deadline | 1 February for business profits subject to deemed profit basis. |
| Financial Year | 1st January to 31st December |
| Date format | dd/mm/yyyy |
| Currency | Lebanese pound (LBP) |
| VAT | the standard rate is 11% |
Employer Payroll Contributions in Lebanon
| Employers | % of Gross Salary |
| Maternity & Sick Benefits | 8% |
| Family Benefit | 6% |
| End-of-service Indemnity | 8.5% |
| Total Employment Cost | 22% |
Employee Payroll Contributions in Lebanon
| Employees | % of Gross Salary |
| Medical Scheme | 3% |
| Total Employee Cost | 3% |
Minimum Wages in Lebanon
| Minimum Wage | |
| Minimum Wage | The minimum wage in Lebanon is 675000 LBP per month. |
Payroll Cycle in Lebanon
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | There are no provisions in the law. |
Personal Income Tax in Lebanon
| Income Tax | |
| Tax Rates | Progressive payroll tax rates between 2% and 25% |
In Lebanon, employment contracts
serve as the foundation for the relationship between employers and employees, outlining their rights and responsibilities. According to the Labour Law, an employment contract must be mutually agreed upon and signed by both the employer and the employee, with the employer providing a copy of the signed written contract to the employee.
An employment contract, as defined by the Labour Law, is an agreement between an employer and an employee, with a fixed or indefinite term, wherein the employee undertakes to work for and be under the management and supervision of the employer in exchange for a committed wage or salary. The term "employee" refers to an individual who works for an employer, under their management and supervision, in return for any form of wage or salary.
Several key provisions regarding employment contracts are stipulated by the Labour Law. Employment contracts and related documentation must be in Arabic, and in case of any dispute, the Arabic text prevails over other languages. It is generally required for employment contracts to be in writing and in duplicate, with copies retained by both the employee and the employer. If there is no written contract, other legal means of evidence can be utilized to establish the existence and terms of the contract. Any employment contract without written documentation is considered to have an indefinite term.
Important details that must be included in all employment contracts consist of the names of the employer and employee, the starting date of employment, the expected duration (if not indefinite) or the fixed end date for fixed-term contracts, the job title or a brief description of the work, the place of work, the wages, terms and conditions regarding working hours or days, and the notice period for termination.
Employers in Lebanon have a general obligation to prioritize the health, safety, and welfare of their employees to the extent reasonably practicable. This includes providing a workplace free from harassment and ensuring a safe environment that does not pose risks to employees' health. On the other hand, employees are expected to perform their duties diligently and with care, comply with the employer's orders (as long as they align with their employment duties and avoid endangerment), adhere to health and safety instructions, take reasonable care of employer's property, refrain from competing with the employer's business, and maintain the confidentiality of any employer's information even after the termination of employment.
Understanding and abiding by the terms and conditions stated in the employment contract is essential for both employers and employees in Lebanon, fostering a productive and respectful working relationship.
Probationary periods
Under the Lebanese labor law, probationary periods apply to different categories of employees. Office workers, including administrative staff and senior managers, fall under the first category, while manual laborers belong to the second category.
When initially hired, employees are placed on a three-month probation period. During this time, the employer is obligated to pay at least the minimum wage, which is currently set at 675,000 LBP per month.
During the probationary period, either the employer or the employee can terminate the employment contract without the need for prior notice, as specified in the notice periods. It is important to note that an employee cannot undergo more than one probationary period with the same employer, nor can it be renewed.
If the employee successfully completes the probationary period, it will be considered part of their continuous service with the employer. However, throughout the probation ary period, the employee is not entitled to any form of leave, including sick leave. If the employee wishes to take leave during this period, it will be considered unpaid leave.
In cases where the employee is engaged as a trainee, both the employee and the employer have the right to terminate the work contract within the three months following its signing, without prior notice or the need for indemnity.