How to hire and pay EMPLOYEES IN


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Before hiring


Before hiring employees in Lebanon, there are a few important things you’ll need to know. Firstly, in Lebanon, the validity of non-compete agreements depends on the legitimacy of their provisions. They must be clearly stated, and limited in their duration and geographical scope.

It’s also important for employers to know that in Lebanon, employees don’t receive paid vacation time during their first year of service. After that, their entitlement to paid time off depends on how long they’ve been employed. 

We know this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform. 

Get an overview of what you need to know when hiring in Lebanon below.

At a Glance








UP TO 20

(based on region;
see here



of gross salary

13th / 14th SALARY


Good to know

  • There are 6 different exchange rates for USD to LBP transactions due to the ongoing political crisis.
  • In addition to the mandatory benefits (which include transportation benefits), some companies in Lebanon also offer private health and life insurance, food allowances, and family and education allowances. These allowances do not form part of the NSSF (National Social Security Fund) employer contributions but are accounted for as operational expenses, and are free of tax.
  • The probation period for employees in Lebanon is three months. 

Labor Laws in


Working hours and overtime

Employees in Lebanon work up to 8 hours a day, 48 hours per week. 

The maximum number of working hours per day can be extended to 12 hours, and the pay rate for overtime hours must be one and a half times the usual hourly wage.

Employment contracts
Probationary period

The probationary period in Lebanon is three months. 

IP protection and non-compete agreements

The validity of non-compete agreements in Lebanon depends on the legitimacy of their provisions. They must be clearly stated, and limited in their duration and geographical scope.

An employer is not legally required to give additional consideration (salary bonus, or other benefits) to the employee during the non-compete period, but such compensation, if offered, can strengthen the validity of the agreement in courts.

Calculate costs to hire internationally

Benefits & leave in


Vacation time

Employees in Lebanon don’t receive paid vacation time during their first year of service. After that, their entitlement to paid time off depends on their length of service. The breakdown is as follows:

  • One completed year of service to five years of service: 15 days
  • Five to 10 years: 17 days
  • 10-15 years: 19 days
  • More than 15 years: 21 days

Sick leave

Entitlement to sick leave depends on the length of service. It goes as follows:

  • Between three months and two years of service: Half a month on full pay and half a month on half pay
  • Between two and four years: One month on full pay and one month on half pay
  • Between four and six years: One and a half months on full pay and one month and a half pay
  • Between six and 10 years: Two months on full pay and two months on half pay
  • More than 10 years: Two and a half months on full pay and two and a half months on half pay

Parental leave


View a list of recognized public holidays in Lebanon here.

Employer tax

In Lebanon, an employer’s total social contributions total 22.5%. This includes:

  • Medical (for sickness and maternity): 8% (Maximum contribution of LBP 2,500,000)
  • Family allowances: 6% (Maximum contribution of LBP 1,500,000)
  • End of service allowance: 8.5% (On top of an employee’s whole salary)

Individual tax

In Lebanon, employees pay an income tax of 2% to 20%, depending on their salary range. Employees also pay 3% in social security, which is capped at LBP 2,500,000.

Termination in


Employees in Lebanon are entitled to severance pay, and in cases of unfair or abusive termination, the amount can be equal to between two and 12 months' wages. The assessment of severance pay should take into consideration:

  • The nature of the employee’s work
  • The employee's age
  • The duration of employment
  • The employee's health and family status
  • The materiality of the damage
  • Any misuse of the termination right
Notice period

In Lebanon, written notice must be provided for terminations, except in cases of contract violation. The notice period for dismissals and resignation depends on the employee's length of service with the employer. The breakdown is as follows:

  • Less than three years of employment: One month
  • Between three and six years: Two months of notice
  • Between six and 12 years: Three months of notice
  • 12 years and above: Four months of notice

In lieu of letting employees serve out their notice period, employers can also choose to pay them compensation equal to the wages that would have been earned during the notice period.

The employer and employee can terminate the employment contract at any time by mutual consent, as long as the employee's consent is expressed in writing.

Start hiring employees in


Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast. 

We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities. 

With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.

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