Employer of Record (EOR) in Lebanon

Employment Laws and Regulations in Lebanon

Employment Contracts

The Lebanese Labour Code of 1946, as amended by Law No. 22 of May 2025, governs all private-sector employment relationships. Written employment contracts are strongly preferred and provide legal clarity for both parties. Contracts must be provided in Arabic; a certified Arabic translation is required for any English-language original.

Fixed-term contracts automatically convert to indefinite-term contracts if renewed or extended beyond two consecutive years of service. This automatic conversion is mandatory under the Labour Code and cannot be waived by agreement.

Working Hours and Overtime

The Lebanese Labour Code sets a standard 48-hour work week (8 hours daily, 6 days). Employees get a minimum of 9 consecutive hours off per day and at least 36 continuous hours weekly (usually Sunday). Overtime work is regulated under Article 33 of the Labour Code and must be compensated at the premium rates outlined below.

Total overtime is capped at 2 hours per day for weekday daytime work. Employees working on public holidays or weekly rest days must receive double pay plus a compensatory rest day. Certain managerial and supervisory roles may be exempt from overtime provisions.

Minimum Wage

Lebanon’s minimum wage was increased to LL 28,000,000 per month (approximately $313 at the official exchange rate), effective August 1, 2025, per Ministry of Labour Decree No. 699. The previous rate was LL 18,000,000 per month, which had been in effect since April 2024. The daily minimum wage is LL 1,300,000.

Probation Period

The maximum probation period in Lebanon is 3 months, and it is non-renewable. During probation, employers may terminate the employment relationship without providing notice or severance indemnity. Once the probation period concludes successfully, the full tenure clock begins from the original employment start date for purposes of leave, notice, and severance calculations.

Leave Entitlements

Annual Leave

Employees are entitled to a minimum of 15 working days of paid annual leave after one year of continuous service. Leave accrues at a rate of 1.25 days per month.

The Labour Code does not mandate additional leave based on tenure, though employment contracts may provide more generous entitlements.

Sick Leave

Sick leave entitlements in Lebanon are graduated by length of service. A medical certificate is required for all absences.

Employees with less than two years of service receive half pay for 15 days and unpaid leave for 15 days. Those with two to four years receive full pay for 15 days, half pay for 15 days, and unpaid leave for 15 days.

Employees with four to six years of service receive full pay for one month, half pay for 15 days, and unpaid leave for 15 days. Those with six to ten years receive full pay for 45 days, half pay for one month, and unpaid leave for 15 days. Employees with more than ten years receive full pay for two months, half pay for one month, and unpaid leave for 15 days.

Maternity Leave

Female employees are entitled to 10 weeks of paid maternity leave, typically 6 weeks before and 4 weeks after the expected date of birth. The employer must pay full salary during maternity leave. Dismissal during pregnancy or maternity leave is strictly prohibited under the Labour Code.

Paternity Leave

Lebanon does not provide statutory paternity leave. No legal entitlement exists for male employees following the birth of a child. Some employers offer 1–3 days as a voluntary benefit.

Other Statutory Leave

The Labour Code and applicable collective agreements recognize several additional leave types. Bereavement leave provides 2 paid days for the death of a parent, spouse, child, or grandparent.

Marriage leave is typically 3–5 days, depending on the collective agreement. Pilgrimage leave of up to 15 days is available once during the employee’s tenure for religious pilgrimage.

Lebanese law provides several statutory leave protections. The table below shows the minimum entitlements. One key point: annual leave accrues from day one, not after probation ends.

Statutory Employee Benefits

Beyond leave, Lebanon mandates several employer-funded benefits through NSSF and labour law.

Health insurance provided through NSSF covers medical treatment, hospitalization, and maternity benefits. The NSSF also funds family allowances for dependents, providing additional financial support for workers with eligible family members.

End-of-service indemnity is a mandatory employer contribution of 8.5% paid as a lump sum at the time of employee separation. Transportation allowance is a statutory monthly allowance established under Decree 7426.

Meal and education allowances are not legally mandated but are commonly provided by employers as competitive benefits.

Recent Regulatory Updates (2026)

Lebanon enacted significant labour law amendments in May 2025 (Law No. 22), formally recognizing remote work, flexible working arrangements, and compressed work schedules for the first time. These changes provide legal clarity for employers and employees using non-traditional work models and reduce uncertainty for companies operating distributed teams.

The minimum wage was raised to LL 28,000,000 per month in August 2025 (Decree No. 699), up from LL 18,000,000. NSSF contribution ceilings were also updated per Memorandum No. 793 (July 2025), increasing the sickness and maternity ceiling to LL 120,000,000 and the family allowance ceiling to LL 18,000,000 per month.

Work Permits and Visas in Lebanon

Work Permit Requirements

Who Needs a Work Permit

All foreign nationals employed in Lebanon require a work permit, regardless of their nationality or employment duration. Gulf Cooperation Council (GCC) citizens receive visa-free entry for up to six months, but they must still obtain a work permit from the Ministry of Labour to be legally employed. Similarly, Jordanian nationals qualify for visa-free entry for up to three months but remain subject to work permit requirements.

Eligibility and Required Documents

Here’s what you need to get a work permit: valid passport (6+ months validity), employment contract, educational credentials, medical certificate, police clearance, and proof of employer registration with the Ministry of Labour. The Ministry reviews everything, then forwards to the Directorate General of Security for final approval.

Processing Time and Validity

Work permit processing typically requires 1–3 months from submission to approval. Once issued, permits are valid for one year and may be renewed annually. The Ministry of Labour reviews all applications before the Directorate General of Security issues the official residence permit.

Renewal Process

Work permits must be renewed annually before expiry. Employees should submit updated documents, including a valid employment contract, updated medical certificate, and passport copy, at least one month before the current permit expires. Employees may continue working during the renewal period if the application is filed before the permit’s expiration date.

Common Visa Types for Foreign Workers

Lebanon offers several visa categories for foreign workers, from standard employment to investment-backed residency.

Tourist and student visas don’t allow work in Lebanon. You need a proper work permit before accepting any paid role.

• Tourist visas are issued for temporary visits and specifically prohibit commercial or wage-earning activity.
• Student visas are limited to full-time study and do not authorize employment unless explicitly noted by the issuing authority.
• Converting from tourist or student status to employment requires a new work permit application.

How an EOR Handles Work Permits

An Employer of Record coordinates directly with the Ministry of Labour and Directorate General of Security on behalf of the employer and employee. The EOR prepares all required documentation, submits applications, tracks approval status, and maintains compliance records. While some EORs sponsor permits directly under their registration, others coordinate with local labour partners to ensure timely processing and compliance with current regulations.

Employers should note that work permit processing may add 1–3 months to the overall onboarding timeline, even when using an EOR. Planning ahead and submitting applications promptly helps minimize delays and ensures the employee can begin work as scheduled.

Payroll, Taxes, and Social Security in Lebanon

Employer Contributions

Employers in Lebanon contribute to the National Social Security Fund (NSSF), which operates three separate branches: sickness and maternity insurance, family allowances, and end-of-service indemnity. These contributions are mandatory and are calculated as a percentage of gross salary, with specified monthly ceilings that reduce the effective rate for higher earners.

Employee Contributions

Employees contribute 3% to NSSF sickness and maternity, withheld monthly by the employer. Unlike employers, who fund three branches, employees only fund one branch, keeping their burden low by regional standards.

Income Tax

Lebanon imposes a progressive income tax with seven brackets ranging from 2% to 25%. Individuals receive a personal exemption of LL 450,000,000 (single), plus LL 225,000,000 for an unemployed spouse, and LL 45,000,000 per dependent child. Income tax is withheld monthly from salary by the employer.

Payroll Cycle

Payroll runs monthly. Bank transfer is mandatory for salaries over LL 10 million; all payments are in Lebanese pounds (LBP). Employers provide detailed pay slips each period showing gross, deductions, and net.

Employers must file NSSF contributions and income tax withholdings on a monthly basis with the relevant government agencies. Failure to comply with payroll filing deadlines can result in penalties and interest charges.

13th Month Salary and Bonus Pay

A 13th month salary is not mandatory under Lebanese labour law. The Labour Code of 1946 does not require employers to pay a year-end bonus or additional monthly salary. However, if an employer voluntarily offers a 13th month bonus or end-of-year payment, or if it is specified in the employment contract, it becomes a binding contractual obligation that must be paid.

Cost of Hiring Through an EOR in Lebanon

EOR Service Fees

EOR service fees run $300–$600 per employee monthly. That covers payroll, NSSF and tax filing, contract prep, compliance checks, and ongoing HR support. Costs vary by role complexity and service level.

Your total hiring cost = gross salary + employer NSSF contributions + statutory allowances + EOR fee. Here’s a real-world example: $5,000 USD monthly salary.

Figures are converted at 1 USD = LL 89,500 (April 2026). NSSF sickness and maternity contributions and family allowance contributions are subject to monthly ceilings, which significantly reduces the effective employer rate for salaries above those thresholds. The transportation allowance shown is a statutory benefit required by Lebanese labour law and is in addition to the base salary.

Ready to hire in Lebanon? Get started with Remote People, and we handle employment contracts, payroll, tax withholding, and full Lebanon compliance. No local entity needed.

Benefits of Using an EOR in Lebanon

Lebanon’s three-branch NSSF system, strict labour laws, and currency volatility make hiring complicated. An EOR takes that off your plate by handling compliance, managing payroll in local currency, and coordinating with government agencies.

An EOR enables rapid market entry, with operational setup achieved in one to two weeks compared to months required for establishing a legal entity. The EOR maintains full legal compliance by staying current with Lebanese labour law changes. Cost efficiency is significant, as the EOR model eliminates entity setup costs, legal fees, and registered office expenses.

The EOR handles all LBP payment processing, NSSF deductions, and income tax calculations. Risk mitigation is built into the structure, as the EOR assumes employer liability for statutory compliance. The model supports easy scaling of the team without entity restructuring.

Outsourcing HR administration, payroll, and compliance management to the EOR allows the employer to focus on core business activities and strategic growth in Lebanon.

Bottom line: let the EOR handle compliance while you focus on growing your Lebanon team.

Termination and Offboarding in Lebanon

Notice Periods

Notice periods in Lebanon vary based on the employee’s tenure with the employer and are specified in Article 50D of the Labour Code of 1946. The employer or employee must provide written notice to the other party before terminating an indefinite employment contract. Notice can be paid in lieu by mutual agreement, allowing immediate separation while compensating the employee for the notice period.

During probation periods, neither party is required to provide notice; the employment relationship can be terminated immediately. Termination for just cause, such as fraud, intentional damage, or serious misconduct, requires no notice period. Fixed-term contracts do not trigger notice periods; instead, the remaining contract value (or agreed termination payment) becomes due upon early termination.

Severance Pay

Severance = 1 month salary × years of service. It’s due when you terminate without just cause, but not for misconduct. Partial years are pro-rated.

Calculation Method

The severance formula is straightforward: one month of the employee’s last gross monthly salary, multiplied by the total number of years of service. The base salary includes regular allowances (such as transportation and housing allowances) but not irregular bonuses. Years are calculated from the employment start date to the termination date, with partial years pro-rated to the nearest month.

Caps and Exceptions

Lebanon imposes no statutory cap on severance pay; theoretically, an employee with 30 years of service would receive 30 months’ severance. Termination for just cause under Articles 74–75 of the Labour Code eliminates severance entitlement entirely. Terminations deemed abusive by a labour court can result in additional compensation of 2–12 months’ salary beyond standard severance. Fixed-term contracts do not use the severance formula; instead, the remaining contract value is paid as termination compensation.

Grounds for Termination

Just cause for termination under Articles 74–75 of the Labour Code includes fraud, intentional damage to employer property, assault, and serious professional misconduct that violates employment duties. Termination without cause is permitted with notice and severance; the employer need not prove wrongdoing but must provide statutory notice and severance pay. Employees cannot be terminated based on pregnancy, motherhood status, union membership, or union-related activities; such terminations are deemed abusive and trigger additional compensation of 2–12 months’ salary.

EOR vs. Other Hiring Models in Lebanon

Companies expanding into Lebanon have three main hiring options: using an EOR, setting up a local entity, or engaging independent contractors. Each model has distinct advantages depending on team size, timeline, and long-term strategy.

EOR vs. Setting Up a Local Entity

Setting up a subsidiary in Lebanon involves registration with the Commercial Registry, Ministry of Finance, and NSSF, a process that typically takes 3–6 months. An EOR eliminates this process entirely, serving as the legal employer from day one. The comparison below highlights the key differences in cost, speed, and operational requirements.

Go with an EOR if you’re entering Lebanon fresh or testing the market. No registration costs, fast hiring. Add employees as you grow and exit clean if things change.

Choose a local entity if you’re planning 15+ hires and staying long-term. You’ll get government contracts and more control, but expect 3–6 months setup, $15k–$30k upfront, and $5k–$10k to dissolve if you leave.

Most startups use an EOR first, then build an entity if they hit 15+ employees or need government contracts.

EOR vs. Hiring Independent Contractors

Contractor arrangements are cheaper for short-term work, but watch out for misclassification risk. If the worker is directed daily, works exclusively for you, or uses your equipment, labour authorities may reclassify them as an employee.

Use an EOR for permanent roles. You get compliance certainty and IP protection. Contractors work best for short-term projects with a defined end date and scope.

Misclassification is a real threat in Lebanon. Daily direction, exclusive work, company gear, or ongoing renewals can trigger reclassification as employment, bringing retroactive NSSF dues, back wages, penalties, and severance liability. Use a contractor platform that gets the structure and docs right.

For core team roles, use an EOR. You avoid misclassification risk and get stronger IP protection.

EOR vs. PEO

A PEO creates co-employment where both the PEO and you share legal responsibility. Lebanon has no formal PEO framework, so these arrangements run on general labour law.

EOR = you hire fast (1–2 weeks) without a local entity. PEO = you already have an entity and share compliance with the PEO. For market entry, EOR wins.

Since Lebanon doesn’t formally regulate PEOs, co-employment runs on general labour law. That ambiguity is risky in a jurisdiction with strict employment rules. Most PEO deals end up as consulting partnerships, which weakens their value in Lebanon’s regulated world.

New to Lebanon? Use an EOR. It is clearer and faster.

Already have an entity? You can look at PEOs, but know that compliance risk is higher without formal PEO regulation.

Public Holidays in Lebanon

Lebanon honors a wide range of holidays, including Christian, Islamic, Armenian, and national. Employees get paid time off on all official holidays, and work on those days triggers overtime pay. 2026 has 17 official holidays total.

Islamic holidays are lunar-based estimates for 2026. Actual dates shift with official moon-sighting announcements, usually by a day or two. That multi-faith approach means your team gets broad holiday coverage.

Public holidays mean paid time off for employees. Work them, and you owe overtime or compensatory days. An EOR tracks all this and makes sure payroll reflects statutory holiday entitlements.

How to Get Started with an EOR in Lebanon

Ready to hire? Here are five straightforward steps, each with compliance safeguards.

First, define the role and compensation structure, including salary amount, benefits package, and any special allowances required under Lebanese law.

Second, select an EOR provider with demonstrated expertise in Lebanese labour law and NSSF compliance. Third, proceed with employee onboarding by providing the EOR with employment details and documentation needed to draft a compliant contract.

Fourth, activate payroll by confirming salary, deduction preferences, and payment schedules with the EOR. Fifth, establish ongoing management practices through regular communication with the EOR regarding changes to employment terms, benefits, or compliance requirements.

Remote People makes hiring in Lebanon simple. Contact our team to get started.

Where companies hiring in Lebanon expand next

Employers with teams in Lebanon often extend across the Levant and into nearby Gulf markets, where Arabic fluency and business ties create natural overlap. After building a team in Lebanon, employers often look to operations in Israel for overlapping Levant labor markets and mobility, then the United Arab Emirates for a shared Arabic-speaking talent pool. Hiring in Saudi Arabia follows with overlapping Arabic-language hiring profiles, and an EOR partner in Jordan typically closes the regional footprint via shared Levant workforce norms.