Source of funds for six salary hikes

The Lebanese Parliament approved the allocation of an additional budget of 56.5 trillion Lebanese pounds in the 2026 budget to cover raises granted to military personnel, public sector employees, and retirees, starting from March 1st. Although these increases are referred to as "six salaries," they are not six times the current salary, but rather equivalent to six parts of the pre-crisis base salary before the Lebanese pound's collapse, corresponding to a relatively limited increase of about 10% over the previous salary prior to the crisis. The funding comes from a tax on gasoline and increased taxes; however, these revenues are not entirely sufficient, raising questions about the government's ability to continue paying salaries in the coming months, since the open-ended allocation allows expenditures but does not guarantee enough resources. The ongoing challenge is how to transform these raises into fixed and sustainable expenses, especially since the government needs a clear financing plan to ensure the continuation of the raises, which are considered a first step toward gradually raising wages in the coming years.

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