Minimum wage to be
increased to $313 monthly

Family allowances to double

The Minister of Labor, Mohammad Haidar, will propose to the Council of Minister to raise the monthly minimum wage by 65 percent to LL28 million ($313). The minimum wage is currently at LL18 million (around $200).

The announcement was made after chairing a meeting of the National Wage Committee at the ministry’s headquarters to continue discussions on salary and wage adjustments for private sector employees. The meeting brought together key economic and labor stakeholders.

Following a meeting with representatives of the private sector and labor unions, Minister Haidar said: “There was an open, transparent, and responsible exchange among all participants. While some concerns were raised, we were unable to reach a consensus on final figures. However, I presented a phased plan that begins with increasing the minimum wage, followed by future meetings to assess broader wage corrections.”

In addition to raising the minimum wage, Haidar revealed that his plan will include doubling family allowances and increasing school subsidies by 2.5 times. The transportation allowance will remain unchanged, due to a lack of recent adjustments. Public institutions under the labor law, which were not covered in previous decrees, will also be examined.

The committee will meet every two months to monitor economic developments and labor market improvements over the next six months. A comprehensive wage correction plan will be reviewed in December, in parallel with the 2026 national budget discussions, which are expected to include a new public sector salary scale.

The minister acknowledged that the General Confederation of Labor had objections, particularly over the exclusion of the cost-of-living index from the initial phase. “We had two options: either delay the entire process until December or implement the first phase now and provide immediate relief to a large segment of workers,” he said. “I insisted on moving forward with the current plan in line with our commitment to timely action,” he said.

The economic associations, representing the private sector, approved the phased approach. The labor unions officially recorded its reservations. The plan’s next steps hinge on the government’s approval.