Wage boost adopted

New minimum wage LL600,000; raises of 20 to 30 percent to all other salaries with a ceiling on increase amounts

The Council of Ministers approved on Wednesday (December 7) a wage increase decree, raising the minimum wage of employees to LL600,000 (or $400) from LL500,000 at present.

According to the new decree, wages lower than LL1 million will receive a 30 percent increase, providing the amount does not exceed LL200,000. Wages above LL1 million would receive a 20 percent raise, which must not exceed LL275,000 .

The Cabinet also increased the annual education fees to LL1,500,000 ($1,000), from an earlier LL1,000,000 for each family.

Employees who have received an equivalent salary raise since January 2010 will not be eligible for a wage raise. The decree did not include any increase to the transportation allowance.

Prime Minister Najib Mikati presented the adopted decree after the ministers had failed to endorse a draft decree prepared by the Minister of Labor Charbel Nahas.

The president of the General Confederation of Labor Unions, Ghassan Ghosn, said that the union rejects the adopted wage increase. He said that the GCLU insists on a salary raise according to wage segments (60 percent on minimum wage, 40 percent on wages up to LL1.5 million, and 20 percent on wages above LL1.5 million).

Ghosn said that the GCLU’s executive board will meet to discuss possible escalatory steps, including a nationwide strike.

The president of the Teachers’ Syndicate, Nehmé Mahfoud, said that the Syndicate Coordination Committee rejects the decree and will go on with its protest on Thursday (December 15).

The president of the Beirut Chamber of Commerce and Industry, Mohamad Choucair, hailed the new wage increase formula. He said that the private sector economic bodies are ready to implement the salary raise. The Beirut Traders Association announced its objection to the increase.