The economic bodies and the General Labor Union have reached an agreement to raise the transportation allowance for private sector employees from 250,000 LBP to 450,000 LBP per working day. Subsequently, the Council of Ministers approved the transportation allowance increase, which applies to all workers and employees subject to labor law, as well as public institutions governed by labor law. So, when will the new transportation allowance come into effect? And what impact will it have on citizens?
Bishara Asmar, the head of the General Labor Union, mentions that "the new transportation allowance was published in the official gazette on Thursday, February 15, 2024, and thus became effective from the date of its publication. A private sector employee will receive approximately 10 million LBP monthly if they work 24 days, which is a good development; however, the transportation allowance has become higher than the minimum wage, which is 9 million LBP."
Regarding whether it's time to adjust the minimum wage, Asmar responds in an interview with MTV, "We began discussions with the economic bodies before the Gaza war, reaching certain agreements regarding increases to the minimum wage. The Gaza war and the conflict in southern Lebanon exacerbated the situation, causing economic life and the figures of institutions, shops, and factories to regress."
He continues, "We resumed discussions with the economic bodies about a month ago, led by former minister Mohamed Choucair, who established the basis for adjusting the minimum wage. We demanded a high amount equivalent to 50 million LBP, as families need this sum to live a decent life. However, the acceptance and implementation of this figure could be a matter of debate, as some bodies do not have the ability to provide this amount, and some references indicate it could lead to high inflation and require a massive monetary block in Lebanese pounds."
He adds, "We are keen on dialogue that produces acceptable figures that do not lead to inflation and pull us back into an additional collapse in the value of the national currency, to avoid reaching a stage where ‘what we earn in one hand we pay out of the other.’"
Asmar asserts, "We are open to dialogue that leads to determining a viable minimum wage, alongside the economic bodies, within a tripartite representation, and in discussions with Minister of Labor in the caretaker government Mustapha Bayram and the index committee. This reassures us that the minimum wage will not negatively impact the monetary supply and lead us back into a cycle of collapse."
He concludes, "We may need some time, and I expect that we will reach an agreement in early March on a new minimum wage that helps alleviate some of the burdens on workers and contributes to the national social security fund with contributions exceeding the amounts currently reported."
