Using an Employer of Record in Lebanon

Business expansion into Lebanon comes with unique payroll, legal, and compliance challenges. Moreover, before you bring Lebanese professionals into your team, you must have a clear understanding of the local employment landscape. 

From payroll management to labour law compliance, complexities can add up. This is where an employer of record in Lebanon comes in. It acts as the legal employer on your behalf, supporting everything from onboarding and offboarding to contracts and compliance. 

For instance, Payoneer Workforce Management helps manage global talent seamlessly with assistance in navigating legal compliance. 

This guide covers everything that you want to know about an employer of record in Lebanon. 

How to hire employees in Lebanon

If you are looking to engage talent in Lebanon, you can choose from the three primary options mentioned below:

1) Setting up a legal entity in the country

To hire local talent in Lebanon, you can set up a legal entity in the country. Typically, it starts by choosing your business structure and submitting your proposed company name to the Ministry of Justice for approval. 

Submit all incorporation documents to the Commercial Register at the Court of First Instance. Register with the Ministry of Finance for a Tax Identification Number (TIN) and with the National Social Security Fund (NSSF). 

However, the whole process involves high cost, administrative effort, and is time-consuming. 

2) Hiring independent contractors

Hiring independent contractors is one of the best ways to recruit talent in Lebanon. Though flexible and cost-effective, this option comes with worker misclassification risks. 

• Independent contractors must have a detailed and strong contractor agreement in place. 
• They are responsible for managing their own tax filings. 
• They are also not entitled to NSSF contributions from the hiring company. 

3) Employer of Record in Lebanon

Partnering with an EOR in Lebanon, such as Payoneer Workforce Management, is a quick, convenient, and streamlined way to engage talent without setting up a local entity. 

Along with acting as the legal employer, it also helps with Lebanon payroll, employment contracts, employee onboarding and termination, leave entitlements of employees, tax and regulation compliance, and more. 

Want to learn more about how an Employer of Record works? Book a demo today!

How to onboard employees in Lebanon

To onboard employees in Lebanon, employers have to navigate the cultural, legal, and operational aspects of onboarding. They must stay compliant with Lebanon’s labor laws, local rules and regulations, and foster a positive employee experience. 

The complete onboarding process in the country takes approximately 3 to 5 working days. Though the onboarding cut-off is flexible, it is generally the 20th of the month. Here are the important steps:

Here are the essential steps to onboard an employee:

• Register the employee with the National Social Security Fund (NSSF) at the earliest after joining. 
• Register the employee with the Ministry of Finance for income tax withholding. 
• Under the Lebanese Labor Law of 1946, it is mandatory to have a written employment contract. 
• Setting up a compliant Lebanon payroll system is a must to handle all mandatory contributions seamlessly. 
• The new employee gets an overview of the company, company policies and procedures, an idea of the roles and responsibilities, the code of conduct, and more from the HR department. 
• The new employee also gets introduced to the other team members and seniors. 

An EOR not only helps pay employees in Lebanon, but also helps you navigate social security contributions, payroll, employment contract terms, compliance with local laws and regulations, and much more. 

Payroll in Lebanon

In Lebanon, the pay date is the last working day of the month. The salary is usually paid in Lebanese Pound (LBP) or USD. 

Income tax, public health insurance, and social security

It is mandatory to maintain a compliant payroll in Lebanon. This includes proper management, deductions, and contributions for income tax, public health insurance and social security. Read on for more details.

• Income tax: Individual income tax in Lebanon is progressive. Income tax in the country ranges from 2% to 25%. 

Here’s the income tax slabs:

• Public health insurance: Public health insurance in Lebanon is managed by the National Social Security Fund (NSSF) along with the Ministry of Public Health (MoPH). MoPH offers coverage for some treatments and hospitalization when needed. However, citizens have to face long waiting times. The resources are also limited, and the costs are high in public facilities. 
• Social security contributions: The main social security scheme in Lebanon for formal private sector employees is the National Social Security Fund (NSSF). The fund provides statutory benefits, including family allowances, sickness and maternity, and end-of-service indemnity. 

Payoneer Workforce Management offers a great platform to manage Lebanon payroll, along with onboarding, local benefits and more. 

Employment laws in Lebanon

The Labor Law of 1946 is the primary instrument that governs employment laws in Lebanon. This law, similar to that of the UAE, covers the working hours, minimum age of employment, leaves, termination, general discipline, and so on. 

Other prominent laws and regulations in Lebanon include:

• The Social Security Law, enacted by Decree 13955/1963 
• The Occupational Emergencies and Injuries Law, enacted by Decree-Law 136/1983 
• The Code of Obligations and Contracts of 1932 
• The Occupational Health, Safety and Welfare Law, enacted by Decree 11802/2004, and others. 

The laws and policies mentioned there are as follows:

• Working hours in Lebanon: In Lebanon, the work week is 6 days. Working hours are 8 hours per day, which makes 48 hours a week. 
• Overtime: Employees in Lebanon are entitled to overtime work and pay. Employees can work a maximum of 12 hours of overtime every week. The overtime hours are calculated at 150% of the regular hourly wage of the employee. 
• Probation period: Probation period for employees varies in Lebanon. While the minimum probation period is 0 months, the maximum is 3 months. This period is non-extendable. 

Minimum wage in Lebanon

The minimum wage in Lebanon is 1,500,000 Lebanese Pounds (LBP) or USD 310 to 320, depending on the exchange rate. 

However, this may vary based on the role, region, etc., and it is advised to refer to local regulations for recent figures.

Employment contracts in Lebanon

According to the Labor Law, employment contracts in Lebanon are of two types:

• Definite or fixed-term contracts: As the name indicates, these contracts are for a fixed term and are executed for a specific period. These contracts might be renewed after the completion of the term, depending on the work requirement. 
• Indefinite-term contracts: Indefinite-term contracts do not have a fixed end date. These are usually permanent employment contracts. 

Whatever the type of employment contract in Lebanon, it must be in writing. The employment contract can be in English, but an Arabic version is preferred in case of any legal issues. 

Here are the things that an employment contract in Lebanon must contain:

• Full name of the employee and the employer
• Job title and description
• Employment contract type/duration
• Probation period
• Salary of the employee
• Leave entitlements and other benefits
• Working hours and overtime rule
• Termination clauses with notice period

An EOR, as offered by Payoneer Workforce Management, can help you draft compliant contracts, manage onboarding, payroll, time-off management and more.

Leave policy in Lebanon

Employees in Lebanon can enjoy various types of leave, including annual leave, sick leave, maternity leave, and more. 

• Annual/earned leaves: Employees in Lebanon are entitled to annual leave after completing one year of service. However, the company has a provision to grant this leave on a pro-rata basis, even before the employee completes one year of service. The calculation of the leave stands at 1.25 days per month. The number of days of leave depends on the service duration.  

• Sick leave: When employees fall ill in Lebanon, they are entitled to sick leave. The number of days of sick leave and sick leave pay depend on the service tenure of the employee. 

The details are as follows:

• Public holidays: Public holidays in Lebanon are for 15 to 18 days, on average. In 2026, the list of public holidays is as follows:

• Maternity leave: In Lebanon, women employees are entitled to 10 weeks of maternity leave. 
• Paternity leave: Male employees in Lebanon are not legally entitled to any paternity leave. However, it can be given based on company policy.
• Compassionate leave: Employers in Lebanon grant 2 days of paid compassionate leave for the employee’s first-degree relatives. 
• Wedding leave: Employees can take a one-time leave of 3 days with full pay for their wedding. 

Work permit in Lebanon

Foreign nationals seeking employment in Lebanon have to obtain a work permit issued by the Ministry of Labor before starting any work. The employer has to apply for the work permit on behalf of the employee. 

The list of required documents includes a signed employment contract, a valid passport, a medical fitness certificate, a criminal record certificate, and the company’s registration documents. 

Employers and employees must check official government resources of Lebanon for updated and accurate information. 

Background check in Lebanon

In Lebanon, pre-employment background screening involves checking the individual’s identity, address, academic qualifications, previous employment history, financial and credit history, along with criminal records, if any. 

Employers have to abide by certain rules and regulations regarding data privacy and protection. They also have to typically obtain consent before carrying out any background checks in Lebanon. 

Employment termination in Lebanon

In Lebanon, employment termination can take place in the following scenarios:

• Resignation of the employee
• Discharge from the employment service
• Mutual agreement between the employee and the employer
• Dismissal from the service due to factors such as bullying, theft of company property, inebriation at work, sexual harassment at the workplace, fraud against the employer, late-coming, excessive absence, and many more
• Death of the employee

Employment termination without valid and legal grounds is considered unfair dismissal. The employer can face severe legal consequences for the same. 

• Notice period: During termination, employees in Lebanon have to serve a notice period. There is no notice period before probation. However, after the completion of the probation period, employees have to serve a notice period of 1 month. 
• Severance pay: Employees in Lebanon will get severance pay. However, severance pay varies from one case to another. Factors that determine severance pay in Lebanon include period of employment and contract type. 

Company registration in Lebanon

For registering a business in Lebanon, the typical steps include:

• Choose your business structure – SAL, SARL, a branch office or a representative office.
• Reserve your company name by seeking approval from the Ministry of Justice.
• Draft the company’s Memorandum and Articles of Association in Arabic and duly notarized by a Lebanese Notary Public. 
• Open a corporate bank account for depositing the share capital. 
• Submit all incorporation documents to the Commercial Register at the Court of First Instance.
• Register with the Ministry of Finance for a Tax Identification Number (TIN).
• Next, register with the National Social Security Fund (NSSF).
• Last but not least, register with the Chamber of Commerce, Industry, and Agriculture.

However, this demands a huge budget, compliance and administrative overhead, which takes a lot of time.

As a quicker alternative, you can partner with an EOR in Lebanon, like Payoneer Workforce Management, which helps engage talent in more than 160 countries globally, without setting up a local entity. 

PEO in Lebanon

PEO stands for Professional Employer Organization. A PEO in Lebanon generally requires an existing local entity. It can assist businesses in hiring employees, maintaining compliance, managing payroll, and more. 

An employer of record in Lebanon, such as Payoneer Workforce Management, acts as a legal employer. Along with talent management, an EOR supports many other functions without requiring you to set up a local entity in Lebanon. 

Payoneer Workforce Management’s employer of record services in Lebanon

Payoneer Workforce Management offers an employer of record in Lebanon. 

The EOR in Lebanon helps with engaging talent and managing payroll, employee onboarding and termination, taxation, benefits handling, compliance with local and labor laws and regulations, and more. 

Book a demo now!

Frequently asked questions (FAQs)