1. Legal Framework & Who Is Covered
Lebanese payroll compliance rests on three separate legal pillars, each with its own filings, rates and authority:
β’ Labor Law (Legislative Decree 112/1959, as amended) β governs employment contracts, working hours, leave, notice periods and termination.
β’ Social Security Law (Decree-Law 13955/1963, as amended) β establishes the National Social Security Fund (NSSF / Caisse Nationale de SΓ©curitΓ© Sociale, "CNSS") and its three contribution branches.
β’ Income Tax Law (Law 44/2008, as amended by Law 64/2017 and successive annual Budget Laws) β governs the progressive payroll ("salary") tax withheld by the employer.
Coverage: NSSF registration is mandatory for every Lebanese employee working under an employment contract in Lebanon, regardless of employer size or sector. Non-Lebanese employees are, in principle, mandatorily covered as well; under the reciprocity principle, employees whose home country does not extend equivalent social security coverage to Lebanese nationals are enrolled only in the end-of-service indemnity branch (their employer is exempt from the sickness-maternity and family-allowance contributions for them, though many employers still fund private medical coverage instead). Certain categories e.g. domestic workers under the standard live-in contract remain outside NSSF and follow separate arrangements.
2. Currency & Exchange-Rate Context: Read Before Using Any Figure Below
Since 2019 the Lebanese pound (LBP) has lost the large majority of its value against the US dollar. Rather than re-denominate the whole payroll system in USD, the government has repeatedly multiplied the LBP thresholds used for the minimum wage, NSSF ceilings, family allowances, tax deductions and tax brackets β but not always on the same schedule or by the same multiple. Practical consequences to plan around:
β’ The Central Bank's official / "Sayrafa" rate, which the Ministry of Finance uses for tax and customs valuation, has been broadly stable at roughly LBP 89,500β90,000 = US$1 since 2023. This guide uses LBP 89,500 = US$1 for illustration β substitute the rate in force on your actual payroll date.
β’ The payroll-tax bracket table itself has been revalued more than once since 2022 an interim 2022 Budget Law adjustment (3Γ the pre-2022 schedule) was later superseded by a much larger revaluation (60Γ the pre-2022 schedule, see Section 9). At the current schedule, the top bracket only starts above LBP 13,500,000,000/year (β US$151,000/year, β US$12,570/month at LBP 89,500 = US$1), so most real, dollar-linked salaries today stay within the lower-to-middle brackets rather than being pushed straight to 25% β a materially different outcome than under the interim 2022 schedule.
β’ Many employers now pay salaries partly or wholly in "fresh" US dollars. NSSF and tax withholding must still be computed by converting to LBP at the official/Sayrafa rate on the payment date, then applying the LBP-denominated rates and ceilings shown below.
3. Employer & Employee Registration Obligations
β’ Register the business with NSSF within one month of starting activity or hiring the first employee, and obtain an NSSF employer registration number.
β’ Register every new employee with NSSF before or immediately upon starting work; late registration exposes the employer to back-contributions and penalties.
β’ Maintain a payroll register, individual pay slips, and supporting employment contracts for inspection by NSSF and Ministry of Labor inspectors.
β’ Declare and remit NSSF contributions monthly, and file the progressive payroll (income) tax return quarterly (see Section 12 for the filing calendar).
β’ Issue an end-of-service settlement and NSSF indemnity claim file whenever an employee's contract ends, regardless of the reason for termination.
4. Minimum Wage & Key Mandatory Allowances
Item Current Amount Legal Basis / Effective Date
Minimum monthly wage LBP 28,000,000 / month Decree No. 699, effective 1 August 2025
Daily transportation allowance (private sector) LBP 450,000 per working day Effective 15 February 2024 (up from LBP 250,000 set in April 2023)
Schooling / education allowance Up to LBP 6,000,000 per year, for up to 3 children Deductible employer benefit under the Income Tax Law
Family allowance ; spouse LBP 1,200,000 / month NSSF Memorandum No. 793, effective 1 July 2025
Family allowance : per child (max 5 children) LBP 660,000 / month per child NSSF Memorandum No. 793, effective 1 July 2025
The transportation allowance is generally treated as reimbursement of expense rather than taxable wage (up to the published daily cap) and is commonly excluded from the NSSF contribution base and from taxable payroll income when paid strictly per working day actually attended. Confirm current treatment with your accountant, as this has also been adjusted more than once.
5. Statutory Leave & Other Mandatory Employment Provisions
These entitlements come from the Labor Law rather than from currency-linked decrees, so they have been comparatively stable:
Provision Standard Entitlement
Weekly rest At least one full day per week (customarily Sunday, or per company policy)
Public holidays Official/religious public holidays as gazetted annually, paid
Annual (paid) leave 15 working days/year minimum, rising with seniority (e.g. to 20+ days after long service); increased minimums apply to certain categories such as minors
Sick leave Paid leave scaled by length of service β commonly full pay for an initial period, then reduced (e.g. half) pay for a further period, per contract/collective terms and Labor Law minimums
Maternity leave 10 weeks (70 days) fully paid, largely financed through the NSSF sickness-maternity branch; job protection during leave
Paternity leave A short statutory paid leave on the birth of a child (a few days), per Labor Law amendment
Notice period Typically 1β3 months depending on length of service, per contract/Labor Law
End-of-service indemnity (EOSI) Lump-sum benefit on termination/retirement β see Section 8
13th-month / year-end bonus Not a general statutory requirement β only due if promised by contract, policy, or collective agreement
Leave and notice rules vary by sector, collective bargaining agreements, and specific circumstances of termination (resignation vs. dismissal vs. redundancy). Treat the entitlements above as a general framework, not a substitute for reviewing the applicable contract and current Labor Law text.
6. NSSF Contribution Branches, Rates & Ceilings
NSSF contributions are calculated on the employee's actual monthly wage (cash salary plus regular cash benefits), subject to a wage ceiling that differs by branch. Current rates and ceilings (as most recently updated through August 2025):
Sickness & Maternity (medical) Employer:8% Employee-3% Ceiling-LBP 120,000,000 (= 5Γ minimum wage, per NSSF formula)
Family Allowances Employer- 6% Employee:0% Ceiling-LBP 28,000,000
End-of-Service Indemnity (EOSI) Employer-8.5% No ceiling full actual wage
The Family Allowances ceiling has been updated to LBP 28,000,000/month, superseding the LBP 18,000,000 figure earlier cited under NSSF Memorandum No. 793 (1 July 2025) β confirm the underlying circular reference with NSSF, as this branch's ceiling has moved more than once.
How the ceiling works in practice: contributions for a branch are calculated on the lower of (a) the employee's actual monthly wage and (b) that branch's ceiling. An employee earning above a given ceiling still only pays/generates employer contributions on the capped amount for that branch β see the worked examples in Section 10.
Age limit on NSSF coverage
Per Lebanese law, NSSF coverage/contributions stop applying once the employee reaches age 64 β at that point the employee exits the active NSSF scheme and the end-of-service indemnity becomes payable (see Section 8).
Two working spouses
Where both spouses are employed and each is separately registered with NSSF, social security coverage β including the family allowance described in Section 7 β is split between the two registrations rather than claimed in full under each spouse independently. Confirm the current split/allocation mechanics (e.g. which spouse carries the children) with NSSF or your payroll provider when both partners work.
A note on reform
Lebanon has been discussing and partially legislating a shift of the end-of-service indemnity branch toward a monthly old-age/disability/survivors' pension model (rather than a lump sum), as part of a broader NSSF modernization effort. As of this guide's preparation, the lump-sum EOSI mechanism described in Section 8 remains the operative system for most employees, but you should check for the latest legal status before relying on it for long-range planning.
7. Family Allowances
The family-allowance branch pays a monthly cash allowance to covered employees with a registered spouse and/or children, funded entirely by the employer's 6% contribution (no employee contribution). Current amounts (NSSF Memorandum No. 793, effective 1 July 2025):
Dependent Monthly Allowance Previous Amount
Spouse LBP 1,200,000 LBP 600,000
Each child (maximum 5 children) LBP 660,000 LBP 330,000
Example: a married employee with 3 registered children is entitled to LBP 1,200,000 (spouse) + 3 Γ LBP 660,000 (children) = LBP 3,180,000 per month in family allowance, paid alongside salary and reported through the employer's monthly NSSF declaration.
If both spouses work and are each registered with NSSF, the family allowance is split between the two rather than paid in full to both β see "Two working spouses" in Section 6.
8. End-of-Service Indemnity (EOSI) β How It Works
The EOSI branch is funded by the employer's monthly contribution (Section 6) into an individual account held at NSSF for each employee. On termination of employment, the employee is generally entitled to draw the accumulated indemnity, calculated broadly as follows:
β’ Base formula: one month's wage β using the employee's final wage or the average of the last several months, whichever is more favorable β for each completed year of service (pro-rated for partial years).
β’ Long-service enhancement: for years of service beyond a threshold (long cited at 20 years), a higher multiplier historically applied to the additional years, increasing the effective payout for long-tenured staff.
β’ Full entitlement generally arises on retirement at the legal retirement age of 64 (at which point NSSF coverage ends and the indemnity becomes payable β see Section 6), permanent disability, death (payable to beneficiaries), completion of military conscription, or β for a working woman β marriage within a specified window.
β’ Resignation before reaching a minimum qualifying period, or before a set number of years of service, typically reduces the payout to a percentage of the full entitlement rather than the full amount; dismissal for cause can also affect entitlement.
The exact percentage-reduction scale for early withdrawal, and the precise "long-service" multiplier and threshold currently in force, are technical and have been subject to updates. Verify the current schedule with NSSF or your labor/payroll counsel before finalizing any termination settlement β do not rely on the general description above for an exact indemnity calculation.
9. Payroll (Salary) Income Tax β Brackets, Deductions & Rules
Employers withhold a progressive tax on salaries at source, from 2% to 25%. The schedule below is the table currently applied in Lebanese payroll systems β it reflects a full revaluation of the original pre-2022 brackets (which ran from LBP 6,000,000 to LBP 225,000,000) by a factor of 60Γ. This is significantly larger than the interim 3Γ adjustment made by the 2022 Budget Law (which produced a temporary LBP 18,000,000β675,000,000 range still quoted in some older secondary summaries) β a clear illustration of how often this specific table has moved.
9.1 Progressive brackets (annual, LBP)
1 0 to 360,000,000 2%
2 360,000,000 to 900,000,000 4%
3 900,000,000 to 1,800,000,000 7%
4 1,800,000,000 to 3,600,000,000 11%
5 3,600,000,000 to 7,200,000,000 15%
6 7,200,000,000 to 13,500,000,000 20%
7 13,500,000,000 to (no upper limit) 25%
Quick formula: for taxable annual income falling between a row's "From" and "To", Tax = Cumulative Tax at "From" + (Income β From) Γ Rate. Example: for annual income of LBP 1,384,800,000 (row 3 applies, since it falls between 900,000,000 and 1,800,000,000): Tax = 28,800,000 + (1,384,800,000 β 900,000,000) Γ 7% = 28,800,000 + 33,936,000 = LBP 62,736,000 (see Example 2 in Section 10).
Retirement pensions and similar benefits are taxed at half the rates shown above.
9.2 Personal / family deduction
Before applying the brackets, the employer deducts an annual "family charge" allowance that varies with the employee's marital/dependent status. The 2024 Budget Law raised this allowance to a range of LBP 450,000,000 (single, no dependents) to LBP 900,000,000 (married with the maximum recognized dependents) per year β up from the previous LBP 37,500,000β62,500,000 range.
The exact intermediate tiers between the LBP 450 million minimum and LBP 900 million maximum (e.g. married with no children, married with one child, etc.) were not confirmed in the sources available for this guide. The worked examples in Section 10 use the published minimum (single employee) and a reasoned mid-range estimate (married with two children) β treat the second figure as illustrative only and confirm the exact tier with your accountant or the Ministry of Finance schedule.
9.3 Other payroll-tax rules worth knowing
β’ Mandatory NSSF employee contributions are deducted from gross wage before computing taxable income.
β’ Termination/severance payments made between 15 February 2024 and 31 December 2025 are exempted from payroll tax under Ministry of Finance Decision No. 1311/1 (31 December 2024).
β’ Representation allowances for managerial staff are deductible up to 10% of basic salary; scholarships/gifts for births, marriages or deaths approved by the employer, and the schooling allowance described in Section 4, receive specific tax treatment.
10. Worked Payroll Examples
Both examples convert USD references at LBP 89,500 = US$1 (the approximate official/Sayrafa rate) purely for illustration β always use the rate in force on your actual pay date. Monthly tax is approximated by dividing the annual bracket thresholds by 12 and annualizing the monthly taxable base; in practice, employers typically compute payroll tax on a cumulative annual basis, so slight month-to-month variations are normal.
Example 1 β Single employee, gross salary LBP 40,000,000/month (β US$447)
Line Amount (LBP)
Gross monthly salary 40,000,000
Employee NSSF β Sickness/Maternity (3% Γ 40,000,000; below the 120,000,000 ceiling) 1,200,000
Net of employee NSSF 38,800,000
Less: monthly family deduction (single β 450,000,000 / 12) 37,500,000
Monthly taxable base 1,300,000
Annualized taxable income (Γ12) 15,600,000
Annual tax due β entirely within the first bracket (2% Γ 15,600,000) 312,000
Monthly tax withheld (Γ·12) 26,000
Net pay to employee 38,774,000 (β US$433)
Employer-side NSSF cost for this employee:
Branch Base Used Rate Employer Cost (LBP)
Sickness & Maternity 40,000,000 (below 120,000,000 ceiling) 8% 3,200,000
Family Allowances 28,000,000 (capped β wage exceeds the 28,000,000 ceiling) 6% 1,680,000
End-of-Service Indemnity 40,000,000 (no ceiling) 8.5% 3,400,000
Total employer NSSF cost β β 8,280,000
Total cost to employer β Example 1
Gross salary: LBP 40,000,000
+ Employer NSSF: LBP 8,280,000
= Total monthly cost: LBP 48,280,000 (β US$539), excluding any transportation/other allowances
Example 2 β Married employee with 2 children, salary referenced at US$2,000/month
Gross LBP equivalent at 89,500 = US$2,000 Γ 89,500 = LBP 179,000,000/month.
Line Amount (LBP)
Gross monthly salary 179,000,000
Employee NSSF β Sickness/Maternity (3% Γ 120,000,000 ceiling β wage exceeds ceiling) 3,600,000
Net of employee NSSF 175,400,000
Less: monthly family deduction (married + 2 children β illustrative estimate, 720,000,000 / 12) 60,000,000
Monthly taxable base 115,400,000
Annualized taxable income (Γ12) 1,384,800,000
Applying the current progressive brackets (Section 9.1) to LBP 1,384,800,000 of annualized taxable income β which falls in bracket 3 (LBP 900,000,000 β 1,800,000,000):
Bracket Amount Taxed in Bracket (LBP) Rate Tax (LBP)
0 β 360,000,000 360,000,000 2% 7,200,000
360,000,000 β 900,000,000 540,000,000 4% 21,600,000
900,000,000 β 1,384,800,000 (partial bracket 3 of 7) 484,800,000 7% 33,936,000
Total annual tax 1,384,800,000 β 62,736,000
Line Amount (LBP)
Monthly tax withheld (62,736,000 Γ· 12) 5,228,000
Net pay to employee (179,000,000 β 3,600,000 β 5,228,000) 170,172,000 (β US$1,901)
Employer-side NSSF cost for this employee:
Branch Base Used Rate Employer Cost (LBP)
Sickness & Maternity 120,000,000 (capped) 8% 9,600,000
Family Allowances 28,000,000 (capped) 6% 1,680,000
End-of-Service Indemnity 179,000,000 (no ceiling) 8.5% 15,215,000
Total employer NSSF cost β β 26,495,000
Total cost to employer β Example 2
Gross salary: LBP 179,000,000
+ Employer NSSF: LBP 26,495,000
= Total monthly cost: LBP 205,495,000 (β US$2,296), excluding any transportation/other allowances
Example 2's effective annual tax rate works out to about 4.5% of taxable income (62,736,000 Γ· 1,384,800,000) β only bracket 3 of 7 is reached, so a US$2,000/month salary stays well short of the 25% top rate under the current (post-revaluation) schedule. This is a materially lower burden than the interim 2022 schedule would have produced, underscoring why the exact vintage of the bracket table matters. Confirm the family-deduction tier before treating this exact tax figure as final.
11. Compliance Calendar
Obligation Frequency / Deadline
NSSF employee registration Before or immediately upon start of employment
NSSF contribution declaration & payment Monthly β confirm the exact cut-off date with your NSSF regional office/e-services portal, as this is administered separately from Ministry of Finance deadlines
Payroll (income) tax declaration Quarterly β within the first 15 days of the month following each quarter-end
Annual payroll tax reconciliation By 28 February of the following year
End-of-service indemnity settlement & NSSF claim At termination of employment, regardless of cause
Late NSSF or tax payments attract late-payment penalties/interest; the exact penalty rates were not confirmed in the sources available for this guide and should be checked directly with NSSF/the tax authority.
12. Sources & Further Verification
β’ PwC Worldwide Tax Summaries β Lebanon, Individual: Taxes on personal income, Other taxes, Deductions, Significant developments (accessed August 2026): taxsummaries.pwc.com/lebanon
β’ PwC Worldwide Tax Summaries β Lebanon, Corporate: Other taxes, Significant developments, Tax administration (accessed August 2026): taxsummaries.pwc.com/lebanon
β’ Remote.com Country Explorer β Lebanon minimum wage reference (accessed August 2026): remote.com/country-explorer/lebanon
β’ National Social Security Fund (NSSF/CNSS) Lebanon β general institutional information: cnss.gov.lb
β’ Progressive payroll-tax bracket table (Section 9.1) β corrected and confirmed against a current Lebanese payroll-system reference table (From/To/%/Cumulative Tax) supplied directly by the client; this supersedes the earlier, PwC-derived 3Γ estimate used in a prior draft of this guide.
β’ End-of-Service Indemnity rate (8.5%), Family Allowances ceiling (LBP 28,000,000), the age-64 NSSF coverage cut-off, and the two-working-spouses split rule (Section 6β8) β confirmed directly by the client as the applicable current rules, superseding the 5% EOSI rate and LBP 18,000,000 family-allowance ceiling cited in PwC's Worldwide Tax Summaries used in a prior draft.
This guide is a working reference compiled from secondary professional sources, not a substitute for the official Lebanese Official Gazette texts, NSSF circulars, or advice from a licensed Lebanese accountant/labor lawyer. Given how frequently these figures have changed since 2022, re-verify every rate, ceiling and threshold before it is used to run live payroll, negotiate an offer, or settle a termination.