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Government plans VAT and tax hikes to fund public sector pay raises

L’Orient-Le Jour has reviewed the official minutes of the decision, which detail the measures adopted to finance this “temporary” increase in salaries and end-of-service indemnities.

Government plans VAT and tax hikes to fund public sector pay raises

The Finance Minister, Yassine Jaber, and the Interior Minister, Ahmad Hajjar, shaking hands at the Presidential Palace in Baabda before the Cabinet meeting on Feb. 16, 2026. (Credit: Philippe Hage Boutros/L'Orient Today)

The Cabinet met on Monday, Feb. 16 at the Baabda Presidential Palace, and decided on the issue of wage and allowance increases for active and retired civil servants, including employees of public institutions who have been mobilized since at least the beginning of the year. According to the official minutes reviewed by L’Orient-Le Jour on Tuesday, ministers approved an additional raise equivalent to six times the base salary for all civil servants, in addition to increases already introduced since the start of the crisis. The temporary increase will take effect on March 1.Public-sector teachers are included, with specific provisions detailing how the raise will apply to them, particularly with regard to hourly pay. The total increase will be capped at 50 million Lebanese pounds per month (around $560 at the current exchange rate.) Read...
The Cabinet met on Monday, Feb. 16 at the Baabda Presidential Palace, and decided on the issue of wage and allowance increases for active and retired civil servants, including employees of public institutions who have been mobilized since at least the beginning of the year. According to the official minutes reviewed by L’Orient-Le Jour on Tuesday, ministers approved an additional raise equivalent to six times the base salary for all civil servants, in addition to increases already introduced since the start of the crisis. The temporary increase will take effect on March 1.Public-sector teachers are included, with specific provisions detailing how the raise will apply to them, particularly with regard to hourly pay. The total increase will be capped at 50 million Lebanese pounds per month (around $560 at the current exchange rate.) ...
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