Lebanon's private sector 'should not bail out the NSSF a third time,' MIDEL insists

The International Movement of Lebanese Enterprises (MIDEL) said in a statement that it opposes any attempt by political leaders to place the burden of bailing out the National Social Security Fund (NSSF) on the private sector.

"Employers cannot absorb the state's losses or pay a third time for the bankruptcy of social security. Losses must therefore be shared fairly between the state, companies and employees, as no one should bear these losses alone," said the MIDEL board of directors, chaired by Fouad Zmokhol.

MIDEL’s statement comes in response to ongoing discussions regarding the need for a law to compensate for the loss in value, following the collapse of the Lebanese lira amid the crisis that erupted in 2019, of end-of-service indemnities collected by employees who have retired.

"Employees have lost a large part of their income, their deposits and their standard of living, but at the same time, companies cannot shoulder all the losses of social security once again. All previously paid contributions, whose value has been lost, must be the subject of negotiations, cooperation and transparent discussion among production partners to reach an agreement on this delicate issue," MIDEL added.

The organization also expressed support for the proposal submitted by Tripoli MP Faisal Karami, which envisions an exceptional mechanism to compensate individuals whose indemnities have lost their real value starting from a special fund created for this purpose, according to a set of criteria to identify them and quantify the compensations to be paid. Those affected include people who retired between 2019 and April 2024, about 70,000 people, who received minimal compensation after the lira lost 90 percent of its value. Workers still in service until the end of 2023 are also included. The proposal calls for compensation halfway between the amount received and the theoretical market value of the indemnities in question at the current exchange rate. It also suggests splitting the bill between the NSSF, the state, and employers.

In its statement, MIDEL also voiced fears that there is "no serious willingness" to adopt the law distributing the country's financial losses at present due to electoral reasons and because such decisions are unpopular, stressing that this text is one of the key reforms awaited by the International Monetary Fund (IMF). It also criticized the draft state budget for 2026.

"The stated goal is a financial balance between revenues and spending, but it's obvious that the numbers on paper do not reflect reality," MIDEL lamented. The organization believes the state should seriously tackle tax evasion, with more than 50 percent of taxes uncollected, while it is only the transparent and ethical companies that pay their dues, as the informal economy gains ground.