The cabinet on Wednesday approved a wage increase decree other than that proposed by Labor Minister Charbel Nahhas, amid the objection of Free Patriotic Movement ministers.[Naharnet]
I think the Mikati plan is more reasonable than the Nahhas one as it only increases minimum wage by 100,000LL and specifies reasonable wage increases in 2 different ranges.
Increases per ranges are as follows:
Under 1 Million => 30% increase
(200,000 maximum amount allowed)
Over 1 Million => 20% increase
(275,000 maximum amount allowed)
Nahhas wanted to raise the minimum wage even more ( Up to 1,200,000 LL) and also pushed to “authorize the government to pay National Social Security Fund sickness and maternity fees” and “adding the proposed transportation and education allowances to the basic salaries.” [Link]
“Reasonable”!! this is a temporary not a permanent solution. Nahhas have made a more global study regarding the wage increase, for example by increasing taxes on the violated beach resorts and on the real estate sector which is making huge and unjustified benefits…
Where’s that study? I suggested that violated beach resorts be taxed in a previous post I wrote. Are you sure about that?
Here it is back:
https://blogbaladi.com/najib/lebanon/more-on-the-wage-hike/
What Nahhas got wrong is that he wants to increase costs on the government which is not logical at this point specially in relation to the NSSF.
this wont have any effect unless if they control prices and the government should find another source of income like increasing taxes on profits of real estate business and taxing violated beach resorts it should be a package not ONLY raising salaries
Najib, I fully support you in your previous post, and I confirm that Nahhas draft was taking this into consideration, and I heard on the new tonight that the minimum salary in Nahhas’ draft was around 900,000 not 1,200,000 as you mentioned earlier.
You’re right Rob there should be a package of reform and actions to be taken in parallel to the wage increase in order to prevent prices inflation.