Wage Hike Decree to be Effective as of February

The wage hike will be effective as of February after the official gazette, issued on Thursday, included the decree approved by the cabinet, which set the minimum wage at LL675,000.

The controversial wage increase was signed by President Michel Suleiman, Prime Minister Najib Miqati, and Labor Minister Charbel Nahhas after the cabinet adopted the deal between the Economic Committees and the General Labor Confederation, which was sponsored by Miqati in December at the Baabda Palace.

The plan sets the minimum wage at LL675,000, canceling a LL200,000 increase in wages given on 1/1/2010. The increase on brackets sets the raise on the first bracket up to LL400,000 to 100 percent , a sum that wouldn’t be less than LL375,000 while the increase on the second bracket – up to LL1.5 million- would include the first LL400,000 plus a 9 percent raise.

However, the transportation and education allowances remain the contention point as Nahhas was tasked by the government to prepare a draft law and refer it to the parliament for adoption, allowing the government to set the minimum rates for transportation and education allowances, thus “legalizing” them.

The minister argues that he will not sign any transportation allowance decision as it should be included in the salary in order to “legalize” it, but when the matter was subject to vote at the cabinet his proposal won the support of 10 ministers while 19 voted against it.