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Lebanon Proposes Comprehensive Labor Law Reforms and Public Sector Overhaul

Beirut:Lebanon has completed a comprehensive draft labor law aimed at modernizing outdated legislation from 1946, as announced by Labor Minister Dr. Mohammad Haidar. Alongside this, Nisrine Machmouchi, President of the Civil Service Council, outlined a five-year plan for public sector reform focusing on pay, staffing, and recruitment.

According to the National news agency - Lebanon, Dr. Haidar revealed that the new labor law was developed over 18 months with input from the International Labour Organization, international bodies, and Lebanese social legislation experts. The draft has been submitted to the government and relevant ministries for feedback by the end of the year, with plans to present it to Parliament next year.

The proposed labor law aims to balance worker and employer rights while regulating modern employment types such as part-time, remote, and digital-platform jobs, as well as employment changes linked to artificial intelligence. It also seeks to extend coverage to sectors like agriculture, construction, and crafts.

Additionally, Dr. Haidar mentioned that the Index Committee agreed in principle to link the daily transportation allowance to the cost of five liters of gasoline, with a minimum allowance set at LBP 500,000 per day. While studies suggest a decent standard of living would require around $1,200 per month, current conditions pose challenges to achieving this. A committee will continue to work towards a practical and fair solution.

Nisrine Machmouchi emphasized that public administration reform will focus on restructuring staffing, enhancing merit and transparency, improving employee conditions, and adapting to digital transformation. She noted that public sector salaries have lost about 90% of their value from 2020 to 2024, with government payrolls and related expenses consuming 43% to 56% of state budget appropriations.

A draft law, prepared with the Finance Ministry and Banque du Liban, outlines a roadmap for phased salary increases from 2025 to 2030, aiming to restore approximately 80% of employees' pre-crisis purchasing power by 2030. Machmouchi also highlighted plans to streamline civil administration from 28,899 to between 13,000 and 15,000 positions, while creating new roles for digital government.

Both officials stressed the importance of aligning education, recruitment, and training with the evolving needs of Lebanon's labor market.