Public sector payroll
two thirds below 2019

Accounts for half the government budget

Total personnel cost in the public sector, which includes salaries, wages and social benefits as well as retirement and end-of-service compensations of civilian and military personnel, dropped by 69 percent in terms of dollars to $2 billion in 2024 from $6.2 billion in 2019.

Personnel cost, which represents the largest spending component, accounted for 51 percent of total expenditures in 2024, according to the Ministry of Finance (MoF)’s Public Finance Monitor.



*The average exchange rates used are: LL1,629 for 2019 and LL89,687 for 2024
Sources: Ministry of Finance and InfoPro Research

The sharp decrease in personnel cost was driven by the collapse of the lira and a substantial decline in the size of the public sector workforce as a result of staff voluntary attrition due to salary erosion, emigration, and retirement in addition to the hiring freeze (partially) implemented since 2017. The World Bank said in its Lebanon Systematic Country Diagnostic released in August 2024: “The crisis has led to significant levels of staff attrition and absenteeism, severely curtailing core government functions and service delivery. The erosion of public sector salaries has resulted in a critical skills gap, with a significant number of staff leaving their positions. The government’s efforts to increase salary levels and preserve core functions have not been successful in incentivizing staff retention and attendance.”



*Figures based on anecdotal estimates due to lack of reliable and comprehensive data
Source: World Bank

The government has tried to mitigate the erosion of public salaries by offering employees additional temporary payments. MoF said in the Public Finance Monitor: “Although no adjustment was made to the salary scale after 2017, temporary additional payments are made to public employees under the label of social assistance and are not included in the basic salary, aiming to cover the sharp rise in living costs and help them adapt to current economic conditions.” Since these additional payments are not included in the basic salary, they are not subject to retirement deductions.

In 2024, judges’ mutual funds, the Lebanese University’s educational staff, and religious courts were credited with Treasury advances. Incentives for educational personnel were also paid in Treasury advances.

Fadi Makki, Minister of State for Administrative Reform, said last September that over 70 percent of public service posts are vacant as the size of the public administration workforce is just around 8,000 employees. “This is an opportunity for reforming public administration,” he said. The public administration workforce doesn’t include the military personnel and employees in other public entities such as municipalities and public institutions. The Office of the Minister of State for Administrative Reform (OMSAR) launched in 2025 a five-year reform project of the public sector that involves hiring new staff, reskilling, and layoffs.