Lebanon’s Cabinet approved on Friday a new minimum wage increase to LBP 28 million per month (approximately $312 at the current parallel market rate), marking a 56 percent rise aimed at alleviating the mounting economic pressure on workers.

The new wage, up from LBP 18 million ($200), will take effect at the end of next month, Labor Minister Mohammad Haydar said.

The decision comes as the country continues to grapple with a severe economic crisis that erupted in 2019. Lebanon’s national currency has lost more than 95 percent of its value, wiping out real wages and severely weakening purchasing power. Inflation remains rampant, and basic living costs have soared.

Prior to the financial collapse, the official minimum wage stood at LBP 675,000, then equivalent to roughly $450 under the former fixed exchange rate of LBP 1,507.5 to the dollar. 

In addition to the wage increase, Haydar confirmed that the minimum salary considered for sickness and maternity leave benefits was also raised, from LBP 90 million to LBP 120 million annually.

He further announced that the government has finalized regulatory decisions to appoint a new board of directors for the National Social Security Fund (NSSF), describing it as a necessary step toward developing a modernized pension system.