Employer of Record in Lebanon

Lebanon, in the Middle East, serves as a commercial link between the Levant, Gulf states and European markets. Foreign companies set up entities in Lebanon to take advantage of its liberal market policies, low corporate taxes and full ownership rights.

Lebanon is currently experiencing regional instability, leading to a devalued Lebanese pound and hyperinflation, which is driving a dollarized economy. However, this does not mean that hiring opportunities in Lebanon should be overlooked. Lebanon has a well-qualified workforce. Skilled professionals such as engineers, developers, accountants, and specialists continue to develop their skills despite economic challenges.

Many of the professionals in Lebanon are university graduates, fluent in English, Arabic and French. This makes it easier for businesses with B2B partnerships in Europe and the Middle East to conduct business activities. Lebanon’s time zone also overlaps with the working hours in many European, Middle Eastern and North African countries.

Employment costs in Lebanon are far lower than in Western Europe and in some other Middle Eastern countries. The current minimum wage in Lebanon is $315 per month. However, professionals often earn twice that amount to cope with living costs. Despite this, their salaries are still significantly lower than those in nearby European countries such as Cyprus, Greece, and Italy.

Despite the tough economic conditions, Lebanon still remains a popular strategic hub for sales, marketing and ICT operations expanding into Europe, Asia and the Gulf.

Foreign companies entering the market often do so by partnering with an Employer of Record in Lebanon. This partnership minimizes the risks of setting up a local legal entity and hiring international employees. Using an EOR like Rivermate gives your business the freedom to test the market and hire an educated workforce with high levels of education and experience.

How an Employer of Record (EOR) Works in Lebanon

The EOR streamlines the hiring of an international workforce while ensuring complete labor compliance. The process is simple and designed for quick onboarding.

Here is how it typically works:

• You Find the Candidate: First, you find the local talent you want to hire in Lebanon.
• The EOR Hires Them: The EOR then legally hires your chosen candidate under a local employment contract that complies with Lebanese law.
• The EOR Handles Onboarding: The EOR manages the entire onboarding process for your new employee.
• The EOR Manages HR and Payroll: The EOR handles payroll processing, tax withholding, and benefits administration on your company’s behalf.
• You Manage Your Employee: Your new team member works for your company on a daily basis, just like any of your other employees. The EOR simply acts as the legal employer in the background.

Why use an Employer of Record in Lebanon

Lebanon offers international companies access to a highly experienced labor force, but it can be challenging for employers to establish a legal entity and employ Lebanese workers. An EOR helps businesses navigate these challenges successfully.

• Save Time and Money: Setting up a business entity in a new country can take months and be very expensive. An EOR allows you to bypass this process entirely.
• Access to Local HR Expertise: EORs have local HR experts who understand the specific requirements for benefits and employment in Lebanon. They can help you offer competitive benefits packages that meet local expectations.
• Sponsor Work Permits: An EOR with a registered legal entity in Lebanon can sponsor work permits for foreign employees, which is a requirement for anyone who is not a Lebanese citizen.
• Reduce Risk: The EOR takes on the legal responsibilities of being the employer, which reduces your risk and ensures that all employment matters are handled correctly.

According to a recent labor market assessment, economic challenges in Lebanon have led to significant fluctuations in pay. The country has a highly skilled population, but is struggling to normalize pay structures across industries. For this reason, first-time employers may find it challenging to work out adequate compensation without HR expertise in the country.

In 2025, the government approved a minimum wage increase, helping workers keep up with the rising cost of living. In reality, skilled workers can earn double this minimum wage. Even with these increases, the employment costs in Lebanon are lower than in most European and Gulf countries.

In response to economic pressures, e-marketing, digital skills, coding and design work, and renewable energy are among the fastest-growing jobs in Lebanon. Workers are moving from traditional roles in banking and services (once Lebanon’s strongest sectors) to freelance and remote work, especially those offered by foreign companies.

Lebanon offers a strong, multilingual and talented workforce who are seeking employment opportunities beyond Lebanon’s borders. However, despite this economic and labor reality, the country still offers workers high levels of protection against unfair compensation and labor practices. Foreign employers will benefit from understanding these regulatory protections and adhering to them.

Employment contracts & must-have clauses

Despite Lebanon’s rapidly growing informal employment sector, the country’s labor laws require that employment be formalized through a written employment contract. This agreement protects both the employer and the employee in the event of a dispute.

Your employment contracts should include these key details:

• Your company's and the employee's full identification
• The date the employment begins
• A description of the job and duties
• The location of the workplace
• Salary and payment frequency
• Working hours and rest periods

There are two main types of employment contracts in Lebanon:

Contract Type	Description
Fixed-Term	For a specific period or project.
Indefinite-Term	The standard type of contract with no set end date.

Probation periods

You can include a probation period in an employment contract. This gives both you and the new employee time to see if the fit is right.

Here are the key points about probation periods in Lebanon:

• The maximum length of a probation period is three months.
• During this time, either you or the employee can end the contract without notice or severance pay.
• You must clearly state the probation period in the employment contract.

Working hours & overtime

The standard workweek in Lebanon is 48 hours, typically spread over six days. An average workday is eight hours.

Here’s how overtime works:

• Any hours worked beyond the standard 48-hour week are considered overtime.
• You must pay employees 1.5 times their normal hourly rate for overtime work.

Public & regional holidays

Lebanon celebrates a number of public holidays. Both Christian and Islamic holidays are officially observed. Keep in mind that the dates for Islamic holidays change each year.

Some of the main public holidays include:

• New Year's Day
• Armenian Christmas Day
• St. Maroun's Day
• Rafik Hariri Memorial Day
• Annunciation Day
• Eid al-Fitr
• Good Friday (both Catholic and Orthodox)
• Labor Day
• Eid al-Adha
• Assumption Day
• Islamic New Year
• Ashura
• Independence Day
• The Prophet's Birthday
• Christmas Day

Hiring contractors in Lebanon

Lebanon’s contractor market is growing rapidly amid the country's current economic pressures. Software developers, data analysts, digital marketers, renewable energy specialists (particularly solar) and project managers are highly sought after.

However, foreign companies must be aware of the risks associated with the contractor classification. Contractors in Lebanon are treated differently from full-time employees. Their services are governed by the Lebanese Code of Obligations and Contracts. They are hired on a one-off basis for projects or for limited-duration contracts. During the timespan of these contracts, they must manage their own schedule, provide their own tools and be paid via a service invoice.

Any departure from these stipulations may result in a misclassification claim. Authorities often reward such claims with back-dated pay and statutory benefits awards, which can be a heavy financial burden for an employer.

An Employer of Record (EOR) can help you avoid these risks by ensuring your workers are classified correctly under Lebanese law.

Currently, compensation varies significantly across different jobs and sectors in Lebanon. The labor market is reorganizing itself around the economic challenges, leading to pay disparities for certain workers. Foreign employers will benefit from the expertise of a local HR person or company that understands what salary packages are currently competitive.

Administering payroll in Lebanon requires managing both the Lebanese pound and the US dollar. This can be done in-house or through a third-party payroll provider. Taxes are reported using the Lebanese Ministry of Finance portal. Statutory benefits are managed through the National Social Security Fund (NSSF).

Payroll cycles & wage structure

In Lebanon, the standard payroll cycle is monthly. You typically pay employees their net salary once a month, often near the end of the month. Bank transfers are the standard and preferred method for payment.

Beyond the basic salary, compensation packages in Lebanon often include various allowances. These can be mandated by law or company policy. Common additions include:

• Transportation Allowance: To help cover commuting costs.
• Education Allowance: Some employers provide allowances for employees' children's schooling.
• Performance Bonuses: These are discretionary and based on individual or company performance.

Overtime & minimums

The standard work week in Lebanon is 48 hours. Any work performed beyond these hours is considered overtime. Overtime is compensated at 1.5 times the regular hourly wage.

As of August 1, 2025, the statutory minimum wage in Lebanon is LBP 28,000,000 per month. All employers must adhere to this minimum wage for all employees covered by the Labor Law.

Employer taxes and contributions

Employers in Lebanon are responsible for making several payroll contributions. These contributions fund social security, healthcare, and other employee benefits.

Contribution	Rate	Notes
Social Security	22.5%	This covers end-of-service indemnity, sickness and maternity, and family allowances.

Employee taxes and deductions

Employees also contribute a portion of their salary to social security. Income tax is also withheld from their pay.

Contribution	Rate
Social Security	3.00%
Income Tax	Progressive rates from 2% to 25%

Workers in Lebanon receive both mandatory and supplementary benefits. The mandatory benefits include healthcare, paid leave, end-of-service indemnities and family allowances. Supplementary benefits are used to ‘top-up’ mandatory benefits, which are often insufficient in the current economy. These can include additional healthcare benefits, life and disability insurance and private retirement contributions.

Statutory leave

Here is a breakdown of the legally required leave entitlements in Lebanon.

• Annual Leave: After one year of service, employees get 15 days of paid annual leave. This increases with tenure.
• Sick Leave: Entitlement to sick leave depends on how long the employee has worked for you. It starts at half a month of full pay after three months of service. A medical certificate is necessary to claim sick leave.
• Maternity Leave: Female employees are entitled to 10 weeks of paid maternity leave. You cannot dismiss an employee while she is on maternity leave.
• Paternity Leave: Fathers can take three days of paid leave.
• Bereavement Leave: In the event of a close family member's death, employees get two days of paid leave.
• Marriage Leave: Employees are entitled to one week of paid leave for their marriage.

Public holidays & regional holidays

Lebanon has a number of public holidays, and the dates for some religious holidays can change each year.

Holiday	Date
New Year's Day	January 1
Armenian Orthodox Christmas	January 6
St. Maron's Day	February 9
Rafik Hariri Memorial Day	February 14
Good Friday	Varies
Easter Sunday	Varies
Labour Day	May 1
Liberation Day	May 25
Eid al-Fitr	Varies
Eid al-Adha	Varies
Assumption Day	August 15
Islamic New Year	Varies
Ashura	Varies
Independence Day	November 22
Christmas Day	December 25

Typical supplemental benefits

To attract and keep top talent, many companies in Lebanon offer more than the legal minimum.

Statutory Benefits	Non-Statutory (Supplemental) Benefits
National Social Security Fund (NSSF) contributions	Private health insurance
End-of-service indemnity	Transportation allowance
Paid annual leave	Performance-based bonuses
Paid sick leave	Education allowances
Paid public holidays	Supplementary retirement plans
Maternity and paternity leave

How an EOR can help with setting up benefits

Setting up a compliant benefits package in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR already has a legal entity in Lebanon, so you do not need to set one up yourself. They handle the administration of all statutory benefits, including NSSF registration and contributions. This ensures you are fully compliant with local labor laws from day one.

An EOR can also help you create a competitive benefits package by advising on local market norms and what candidates expect. They can source and manage supplemental benefits like private health insurance, saving you time and effort. By using an EOR, you can confidently offer your employees in Lebanon a comprehensive and attractive benefits package without getting lost in the details of local regulations.

Letting an employee go in Lebanon involves specific steps. You must follow the country's labor laws to ensure a smooth and compliant process. This means understanding the rules for notice periods and severance pay. A fair and lawful exit protects your business and respects the employee.

Notice periods

When you end an employment contract, you need to give the employee written notice. The length of this notice period depends on how long the employee has worked for your company.

Here are the minimum notice periods required by law:

Length of Service	Notice Period
Less than 3 years	1 month
3 to 6 years	2 months
6 to 12 years	3 months
More than 12 years	4 months

During the notice period, the employee continues to work and receive their regular salary and benefits. If you do not provide the proper notice, you must pay the employee their salary for the notice period.

You can terminate an employee without notice if they have committed a serious offense.

Severance pay

Employees in Lebanon are often entitled to severance pay, also known as an end-of-service indemnity. This payment is required unless the employee was terminated for serious misconduct.

The standard calculation for severance is one month's salary for each year of service. This is based on the employee's final salary.

How Rivermate handles compliant exits

Navigating employee terminations in a different country can be complex. We make sure the entire offboarding process is handled correctly and in full compliance with Lebanese law.

Here is how we manage it:

• Legal Compliance: We stay up to date on Lebanon's labor laws. We ensure every termination meets all legal requirements for notice and severance.
• Clear Documentation: We handle all the necessary paperwork. This creates a clear record of the termination process.
• Communication: We help you communicate the decision to your employee in a clear and respectful way.
• Final Payments: We calculate and process all final payments, including any outstanding salary, benefits, and severance pay. This ensures your employee receives everything they are entitled to, on time.

We manage these details so you can focus on your business. You can be confident that the process is fair, compliant, and professional.

According to the Lebanese Labor Code, private companies are required to employ at least 75% local workers. Immigration regulations support this requirement through annual quotas, requiring employers to apply for work permits for foreign nationals. They also need a valid residency visa to work.

Employment visas & sponsorship realities

An Employer of Record (EOR) with a registered legal entity in Lebanon can sponsor work permits for your employees. This is a common way for companies to hire foreign talent without setting up their own entity in the country. The EOR acts as the legal employer and handles the entire visa and work permit process.

Here are some key points about employment visas and sponsorship:

• Sponsorship is required. Independent contractors and freelancers cannot apply for a standard work visa.
• Work permits are tied to the employer. If the employee changes jobs, they will likely need a new work permit.
• Digital nomad visas are not available. While a tourist visa can be used for short stays, it does not permit legal employment.

Business travel compliance

For short-term business trips, Lebanon offers a visa-on-arrival for citizens of over 80 countries. This visa is typically valid for one month and can be extended for up to three months.

Keep these travel realities in mind:

• Entry restrictions. Travelers with Israeli stamps, visas, or seals in their passports will be denied entry. Even previous travel to Israel, without a stamp, can lead to denial of entry or detention if disclosed.
• Required documents. For a visa on arrival, you will likely need:
  • A valid passport
  • Proof of accommodation
  • A return ticket
  • A local phone number and address
• Overstaying is serious. If you overstay your visa, you must resolve your status with the General Security's Department of Passport and Immigration before you can leave the country.