Public Sector Salary Adjustment. FACTS & FIGURES
The Cabinet approved a draft law that stipulates raising the minimum wage for public sector employeesacross the board, including the military, municipal employees and the staff of state-owned entities from LBP500,000 to LBP675,000, or $447.8, which constitutes an increase of 35%, as reported by Lebanon This Week, Byblos Bank newsletter.
Further, the Cabinet endorsed the cost-of-living increase for employees in the public sector. It said that the increase will apply in tranch- es, with a 100% raise on the first monthly salary segment of up to LBP400,000 and a minimum nominal increase of LBP375,000; while an additional 9% raise will be applied on the second salary bracket between LBP400,000 and LBP1,500,000. It said that there will be no increase on the segment above LBP1,500,000.
It noted that the cumulative increase represents the inflation level between end-1995 and end-2011. Further, the government said that the 2008 minimum wage increase of LP200,000 will be deducted from the employ- ee's basic salary before implementing the new increase. It noted that the increase in the cost of living is expected to be paid retroac- tively as of February 1, 2012 starting at the end of September. The increase in the cost of living is expected to cost the Treasury about $320m per year.
In addition, the Cabinet approved an across-the-board adjustment to the salary scale of public sector employees, and will pay it retroac- tively as of July 1, 2012. It noted that salary adjustments and cost-of-living increases will cover retired employees of the public sec- tor. According to the draft law, salaries of public sector employees will nearly double after the implementation of the cost-of-living increase and salary adjustments. The government announced that it will start paying the salary adjustment on April 1, 2013, and that it will disburse the payments over five years. The salary adjustment for public sector employees is expected to cost the Treasury over $1bn annually.
MORE CLOSER LOOK ARTICLES
- 1 of 24
STRATEGIES & PLANS
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.