Lebanon Businessnews News

Employers face higher social security bill
NSSF agrees to raise hospital tariffs only after securing additional funds
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The National Social Security Fund's (NSSF) decision to raise hospitalization tariffs has put an end to the dispute between the NSSF and private hospitals, according to Minister of Labor Salim Jreissati.

During its meeting on May 8 the NSSF board decided to increase hospitalization fees as soon as a decree is issued to raise subscriptions to its Sickness and Maternity Fund.

The decision called for raising the maximum salary bracket subject to subscriptions to the sickness and maternity fund from LL1.5 million to LL2.5 million ($1,000 - $1,660). Subscriptions to the fund are calculated as a percentage of the employee’s salary.

According to NSSF’s general director, Mohamad Karaki, increasing the salary ceiling will raise around LL100 billion ($66 million) in additional revenues to the NSSF. These funds will be used to cover the additional expenditure resulting from the increased hospitalization fees.

The decision, however, is not final, due to lack of representation. The representatives of business owners at the NSSF’s board withdrew from the voting session.

The NSSF’s board will repeat the vote on the decision after 15 days. If approved by the majority of members, the draft will be referred to the Cabinet to be published as a decree.

Reported by Hanadi Chami 
Date Posted: May 09, 2012
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