Loading

Minimum wage hike. A controversial issue

Will the government raise the minimum wage?A scenario, some experts expect will result in layoffs and have an adverse impact on employment.

 

While the General Labor Confederation (GLC) calls for a strike on Oct 12 to improve living conditions, the proposed minimum wages increase ranges between two divergent views. According to the GLC, the salary rise is needed as Lebanese cannot keep up with high cost of living.

 

The GLC has recently asked the Lebanese government to increase the minimum wage to LBP1.250,000.Lebanon’s minimum wage which was last changed in 2008 is LBP500,000.

 

However, another opinion sees the proposed the minimum wage hike, requested by the (GLC), would negatively affect the Lebanese economy.

 

In July 2011, a study revealed by the actuarial firm i.e Muhanna & Co indicated that such a large and ad hoc increase in the minimum wage will result in negative repercussions on the economy, leading more to unemployment, higher inflation and consequently more poverty, according to Lebanon this Week, Byblos Bank’s economic publication.

 

The study stated that the GLC-suggested rise would result in layoffs and unemployment and lead to the closure of companies.

 

“The study noted that the adjustment in the minimum wage is expected to increase the average salary of employees in Lebanon by 52 percent. But due to disparities in salary levels, the increase in labor cost for instance in the agriculture and livestock sector would be as high as 99 percent and as slow as 24 percent in the banking and insurance sector,” according to the publication.

 

It’s worth mentioning, that consumer price index surged 5.5 percent annually in August 2011.

 

While this topic will be at the top of government’s agenda, workers who grumble about the high cost of living particularly the rise in the prices of commodities, just wait and see.

 

MORE CLOSER LOOK ARTICLES

The National Renewable Energy Action Plan 2016-...
The decentralized rooftop solar PV market in...
  The Lebanese Environmental Action (LEA) is...
Four municipalities and unions of municipalities...
The General Directorate for Public Tenders at the...
In collaboration with the International...
As part of the LCEC capacity building activities...
The Embassy of Switzerland in Lebanon, in...
The Sursock Museum in Beirut is planning a group...
The General Directorate of Hydraulic and Electric...
AUB’s air quality research unit to on the...
More than 15 projects in the sustainable energy...
  The solar water heaters market is...
 Under the patronage of the Lebanese...
The LCEC is proud to announce that the new web...
Companies that buy recyclable materials, here the...
Lebanon Oil Installations has recently signed a...
The Energy Charter Secretariat has recently...
An official delegation from Lebanon will be...
Beirut

Migration to cities is increasing so much that, by 2050, the UN predicts that approximately two thirds of the world’s population will be living in cities.

ECO INITIATIVES

  • A fundraising event, entitled Think Green, will be held by Zero Waste ACT for all its business members on September, 10,2013, at WHITE, Dora.
  • The Green Mind Association invited all Green Mind Award Participants, finalists, runner ups and winners to the GREEN MIND DAY on  Jan-16-2013 in Beirut, to create a platform where interested Venture Capital and Potential Investors met with participants.
  • A green initiative launched by Ashrafieh 2020 project aims to transform Ashrafieh into a tranquil and unpolluted area.Green spaces allow residents to walk and ride bicycles.

STAY CONNECTED WITH EECOY.COM

 

MOST VISITED ARTICLES

  1. Moody’s Investors Service indicated that the high level of Central Bank reserves is...
  2. In 2010, the country’s Gross Domestic Product (GDP) grew by 8 percent. The economic forecast...
  3. The General Labor Confederation (GLC) warned that the increase of the value added tax (VAT) rate...
  4. Finally, the electricity bill law is approved by the Lebanese parliament. A draft law allocates $1....
  5. Will the government raise the minimum wage?A scenario, some experts expect will result in layoffs...

UPCOMING EVENTS

Member login

Request new password