Only in Lebanon does the concept of a minimum wage transform from a safeguard for workers into a mechanism for accelerating poverty, and a trigger for automatic price hikes across nearly every sector. While the prices of goods and services have largely returned to, or even exceeded, pre-2019 economic collapse levels, employers continue to resist any serious adjustments to wages or link them to inflation. The result: soaring profits for the few, and a deepening crisis for the many.

Even symbolic wage increases have become a double-edged sword. Traders and service providers quickly seize upon any proposed hike as a justification to raise prices, trapping wage earners in an unrelenting cycle of economic hardship. Within this distorted landscape, Labor Minister Mohammad Haydar has proposed raising the minimum wage to 28 million Lebanese pounds, or roughly $312. The suggestion, however, arrived unannounced, “parachuting in” without prior consultation with the Wage Index Committee. Despite mounting labor unrest, Haydar remains hesitant to send the draft decree to the State Shura Council for review.

Pressure is building from the ground up, as the General Labor Union has threatened to escalate through nationwide strikes and street demonstrations.

Before the economic collapse, Lebanon’s minimum wage stood at 675,000 pounds, worth about $450 at the time. Since then, the Lebanese pound has lost more than 98% of its value. Inflation peaked in April 2023 at 268.78%, and though it eased to 45.52% in 2024 and 14.19% in March 2025, the damage has already been done. Wages have shrunk both in nominal value and in real purchasing power, eroding steadily—and at times, violently—over the past several years.

The Central Bank’s decision to unify and fix the exchange rate at 98,500 pounds per U.S. dollar via Basic Circular No. 167 in February 2024 did bring relative stability. Inflation has slowed, but prices continue to climb at varying paces. Economic growth, meanwhile, remains stalled, hit hard by the ongoing Israeli military campaign and exacerbated by a slow but steady rise in domestic prices. This comes even as global inflation trends downward following the 2022 spike in food and energy prices triggered by Russia’s invasion of Ukraine.

In Lebanon, however, price increases have outpaced currency depreciation. The same product has seen multiple price hikes, even as the exchange rate stabilized. Wages, in contrast, have remained frozenn, or worse, slashed. Large corporations with monopolistic control over key markets have reaped massive profits, resisting attempts to impose taxes or fees while continuing to practice widespread tax evasion. The International Monetary Fund estimates this evasion costs Lebanon between $4 billion and $5 billion annually.

Real Voices, Real Struggles

A recent field survey conducted by Al-Modon offers a sobering snapshot of the wage crisis:

• S.G., a gaming hall supervisor with a decade of experience, earns $600 but says he needs $1,100 to meet basic monthly expenses like rent, transportation, and school fees.

• R.B., a university professor, earns between $600 and $1,200 depending on teaching load. Her living costs exceed $1,350 a month.

• A.H., an air cargo operator with 15 years in the field, earns $500—down from more than $1,000 before the crisis. He needs between $1,000 and $1,500 to support his family.

• A.M., a waiter with three years of experience, brings home $650. He is unmarried and managing, but he’s unable to save a dime.

• A.A., a veteran nurse with 25 years of experience, once earned $1,400. Now he makes just $500. He works two shifts daily, clocking over 360 hours a month, yet still falls short.

• A.J., a younger nurse at a different hospital, earns $800 but needs $1,000 to make ends meet.

• R.B., a restaurant chef, earns $400. His wife earns about the same at an electronics store. Together, they rely heavily on remittances from family abroad to stay afloat.

These testimonies expose vast disparities in wages both across and within sectors. And while costs have surged in key industries such as food and real estate, wages have not followed suit. Purchasing power has cratered. What was once a full month’s salary now barely covers a week’s expenses. Austerity has become the norm. Debt is rising. For some, remittances from the Lebanese diaspora offer a slim lifeline, but only just.

Only one of the survey respondents reported receiving full legal benefits such as paid sick leave, annual leave, insurance, and severance in accordance with labor laws. The majority said they were denied legal leave. Nearly half admitted they are not even registered with the National Social Security Fund.

Employers Capitalize on Crisis

The role of employers in Lebanon’s economic deterioration is structural. Rather than absorbing losses or seeking efficiencies, many responded to the crisis by slashing wages while raising prices, especially after the economy became largely dollarized. Although it’s true that operational costs have increased, these costs have been offloaded directly onto workers.

Even the mere suggestion of raising wages triggers across-the-board price hikes, including in public services and taxes, effectively neutralizing the wage gains before they’re even implemented. This happens in the absence of regulatory oversight, judicial accountability, or effective anti-monopoly laws. Committees tasked with studying wage adjustments and pricing strategies have either failed to act, or have been actively obstructed.

This is no longer about employers refusing to improve livelihoods. It’s now about treating wage correction itself as a red line—one that prompts political posturing and entrenched opposition. Workers, meanwhile, continue to show up, do their jobs, and try to survive. Their loyalty is mistaken for consent. Their sacrifices go unmatched by any commitment from employers or the state to uphold even the most basic forms of economic justice.

Wages in the Market: A Race to the Bottom

Data from job listings analyzed by Al-Modon confirms the downward trend in earnings. Most remote roles—such as graphic design, sales (with commissions), and data entry—offer base salaries between $200 and $400. On-site jobs like restaurant staff, hotel receptionists, janitors, and truck drivers typically pay between $200 and $600.

An upcoming joint report by the International Labour Organization and UNICEF is expected to shed more light on these dynamics, but the story is already clear: wage stagnation and exploitation are no longer the symptoms of a crisis, they are the crisis.