Lebanon

The number one benefit for employees in Lebanon is health insurance. The cost of health insurance continues to rise so private medical insurance is considered a must. The end of service benefit (a payment upon termination of employment) is also considered important due to the lack of retirement funds and family allowances.

 

Asinta Partner
Duncan Crerar

Nexus

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Country Insight

There is some awesome skiing in Lebanon.

Beirut can offer a very high level of care, through private hospitals that are on a par with the best hospitals in West Europe and North America. However, the cost of treatment in private hospitals can be quite high and unfortunately, the healthcare system in Beirut, as with all of Lebanon, is dominated by the private sector.

Whilst public health centers are available, they are not as well equipped nor as well staffed as private facilities, so they are typically overcrowded and have long waiting times, but they are of course much more affordable.

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Optimization of health plans, including flexible benefits.

Private insurers are the sole players in the economy where the government has never nationalized or appropriated any insurance firm. Lebanon´s insurance market is monitored by the Insurance Control Commission (ICC), which is a regulatory body under the Ministry of Economy and Trade. The ICC is responsible to protect the interests of policyholders and ensure efficient market practices that would enhance public confidence in the sector.

Average Cost For Employer Sponsored Benefits

Family allowances are 6% of monthly salary with a ceiling of 1,500,000; health indemnity fund is 7% of monthly salary with a ceiling of 1,500,00; end of service fund is 8.5% of monthly salary (with no salary ceiling). *Note: bearing in mind the average wage is approximately 3,500,000 Lebanese Pounds per month (eq. USD 2,300), but 70% of the population generate an income of less than USD 850 per month.

Advice

Lebanon currently has a healthy economic climate and a young workforce.   The country is keen to receive foreign companies. However, be aware that it is mandatory to have a Lebanese lawyer.

There is a significant base of households that acknowledge the benefits of health insurance and are able to afford it, so the demand for private healthcare has significantly increased. Conversely, in the life insurance segment, premium growth is limited, since few households in Lebanon acknowledge the benefits of life insurance and therefore opt to direct their budgets elsewhere.

Surprising Fact

There is no uniform retirement plan, and a lot of poverty exists amongst the elderly. Another insight is Lebanon actively encourages foreign investors with tax benefits and various exemptions for foreign companies.

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