Lebanon EOR & PEO

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Hire in Lebanon

Although it is currently undergoing a challenging period, Lebanon is still an economy of significant size, with a GDP of almost $18 billion in 2023. From a population of 5.3 million, it has a labor force of approximately 1.75 million with nearly half working in the informal sector. Many of the country’s university-educated youth seek opportunities abroad after graduation, particularly in the nearby Gulf states. Of those who remain, the service sector and tourism are the country’s core industries, alongside manufacturing food products, building materials, ceramics, and textiles. There is also a significant agricultural industry within Lebanon. Average monthly salaries are the equivalent of $450, making Lebanon a cost-effective choice for global businesses seeking to expand into the region.

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hire employees in Lebanon

What Is a Lebanon EOR?

Representing a key outsourcing option for foreign businesses operating within Lebanon, an Employer of Record (EOR) is a human resource management service. An effective EOR will be an expert in the local labor market and the regulations governing it. An EOR applies this knowledge and experience to manage every aspect of employment, from hiring and contracting to payroll, bonuses, and terminations. It also acts as the legal employer of workers on behalf of its client companies and assumes responsibility for legal compliance. By working with an EOR, a foreign business can gain efficient access to Lebanese markets.

Often discussed as though it is interchangeable with an EOR, a Professional Employer Organization (PEO) is an alternative outsourcing solution that offers many of the same services. Crucially, however, a PEO works in partnership with its clients and shares all duties, roles, and liabilities. An EOR, on the other hand, acts as a legal employer and local entity on behalf of its clients, offering additional protection and an increased level of service.

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What Are the Benefits of a Lebanon EOR?

A business choosing to work with an EOR in Lebanon may be the beneficiary of several advantages. In exchange for agreed fees, the EOR will take responsibility for all its client’s human resource management needs, helping it gain quick and effective access to the local labor market.

Among the many specific benefits offered by a high-quality EOR are the easing of the administrative burden, assuring of legal compliance, and the competitive edge of local expertise.

Administrative ease: Managing human resources can be a challenging task even in a business’ native country. When working in an unfamiliar territory, this can increase exponentially. In addition to the bureaucratic hoops that must be jumped through to first establish a local entity, the foreign business must dedicate significant resources to processing, compliance, contracting, handling disputes, and many other areas of employment administration. By outsourcing to an EOR, a business can minimize the burden on its operations and free in-house resources to focus on core tasks.
Legal compliance: Labor laws in Lebanon can be complex, and adhering to them can prevent significant challenges for any foreign business. An EOR is a local expert with thorough knowledge of applicable regulations and how to remain compliant in all operations. Furthermore, by filling the role of legal employer, an EOR also assumes liability for this compliance, thus protecting its clients from potential punishments and complications if disputes or breaches do occur.
Local expertise: Legal obligations are just one of the challenges a foreign business must navigate when establishing a labor force in a foreign territory. It must also overcome language barriers and cultural dissonance, thus compounding the difficulties already inherent in trying to recruit the best talent at the most cost-effective price. Working with a local expert such as an EOR allows a business to be confident it is getting the right workers for competitive market salaries while also minimizing the potential for misunderstandings due to cultural differences.

Horizons is Best IN Class

Why Choose Horizons?

Horizons stands out as a Lebanon EOR through:

A strong regional presence in the Asia-Pacific region, meaning senior management are on the ground to deal with any issues.
Client-focused infrastructure. Horizons won’t oversell you on products and services you don’t need. Horizons offers the easiest platform to compliantly hire and pay people worldwide.
Cost-effective solutions. At $499 per employee, per month, no EOR in Lebanon is more affordable. The cost is 100% transparent (onboarding, offboarding, deposit, no extra charges).
A customer-first culture. Horizons is an efficient bootstrapped company. It is not an externally-funded company burning investor cash to aggressively acquire new clients. Horizons is the only EOR that grows with its customer, reflecting the level of care and personal attention provided to each customer. Horizons will carefully advise on the best setup in each country: the type of contract needed, how to structure your benefits, and how to offboard a person while minimizing the risk of conflicts and extra cost
A long-term partnership. Horizons is the only EOR platform with a recruitment arm — a direct response to client demand. If any employee is leaving, or if our clients want to explore a new country, Horizons can recruit new candidates directly for the client. Horizons is:
- The only EOR doing this in-house — no subcontracting
- The only EOR doing this without a retainer — clients are only charged upon success
- The only EOR charging just a 2% fee per month.

Step-by-step Lebanon EOR

How Does a Lebanon EOR Work?

An EOR in Lebanon is an end-to-end service that handles all aspects of establishing a labor force, from recruitment to termination. While every arrangement may be slightly different, the key steps in this process usually include hiring, contracting, payroll, benefits, and exit procedures.

Hire your employees: The first thing an EOR will do for its foreign client in Lebanon is hire its workers. This might be done by advertising specific roles or by consulting an existing pool of talent featuring individuals who have already been assessed and are waiting for the right opportunities.
Manage employment contracts and onboarding: Once the right workers have been found for each role, the EOR will formalize the working relationships by making a compensation package offer, detailing it in a contract, and arranging for all parties to sign. Once agreed, the EOR will then take each recruit through any necessary onboarding processes so they are ready to begin work.
Process payroll and handle employment taxes: While workers may complete their day-to-day tasks under the management of the client business, it is the EOR who assumes the role of their legal employer. This means the EOR must process payroll and handle taxes for all employees so long as the working relationship is in place.
Administer benefits: As a complement to distributing payroll and remitting tax, an EOR will also be responsible for administering any benefits and entitlements from bonuses to paid leave.
Take care of exit procedures: The final part of any employment cycle is ensuring notice and severance pay are given in accordance with local laws and contractual obligations. This is the last service the EOR will carry out for each employee.

stay compliant with Lebanon labor laws

Labor Laws

Ensuring regulatory compliance is a key part of the service offered by a Lebanon EOR to its foreign clients. In order to complete this, the EOR must be familiar with the details of the region’s labor laws.

Employment contract types

Like most nations, Lebanon has a comprehensive legal framework to govern business operations within its borders. As part of the regulations designed to protect both businesses and workers is the recommendation that all employment be formalized by a written contract.

Project-based

Fixed-term

Indefinite

Working hours in Lebanon

The Lebanese Code of Labour states the maximum standard working week within the territory is 48 hours, with no more than eight hours to be worked in a single day. This daily limit can be extended to 12 hours in certain circumstances. Overtime paid at 50% above the standard rate can also be offered but should never exceed an average of eight hours per day in any four-month period.

Overtime must be compensated in the following way:

Holiday Schedule in Lebanon [2024]

In addition to Independence Day on November 22, workers in Lebanon are entitled to paid time off for a collection of religious holidays from the Christian and Islamic calendars. These days should be offered over and above any personal vacation or time off for other reasons.

Date	Holiday name
1 Jan, 2024	New Year
6 Jan, 2024	Orthodox Christmas
9 Feb, 2024	St Maron’s Day
14 Feb, 2024	Commemoration of the Assasination of PM Rafic Hariri
25 Mar, 2024	Feast of the Annunciation
31 Mar, 2024	Eid al-Fitr
18 Apr, 2024	Good Friday
18 Apr, 2024	Orthodox Good Friday
20 Apr, 2024	Orthodox Easter Day
1 May, 2024	Labor Day
4 May, 2024	Martyr’s Day
11 May, 2024	Liberation and Resistance
7 Jun, 2024	Eid al-Adha
27 Jun, 2024	Muharram
6 Jun, 2024	Ashoura
15 Aug, 2024	Assumption of Mary
5 Sep, 2024	The Prophet’s Birthday
22 Nov, 2024	Independence Day
25 Dec, 2024	Christmas Day

Paid time off

The amount of paid time off employees are eligible to receive is based on how long they have been employed at their current company:

Sick leave in Lebanon

So long as a doctor’s note can be provided, Lebanese workers are also protected in the case of sickness. Any employee who has worked for more than three months but less than two years is entitled to half a month’s absence at full pay plus a further half a month at half pay. This rises after two years to one month at full pay and two months at half pay. Between five and ten years, it becomes two months of full pay and two months of half pay. Ten years of continuous service finally entitles a worker to four months of absence at full pay.

Less than 6 months of sick leave:

(percentage of regular wages owed to the employee)

Over 6 months of sick leave

In order for employees to receive the full wages due to them, workers must present a valid medical certificate from a certified doctor to their employer.

Maternity leave in Lebanon

Lebanese law also makes provisions for paid time off entitlement in the case of childbirth. Female employees have the right to take 70 days of maternity leave at full pay, split as they choose before and after the birth. Male employees are offered three days of paternity leave at full pay upon the birth.

Annual leave in Lebanon

Vacation days in Lebanon should be paid at 100% of an employee’s regular rate. Outside of public holidays, the amount of annual leave each worker is entitled to depends on their length of service. The minimum level is 15 working days, given to those who have worked between one and five years for the same company. This then rises in stages every five years to 21 working days for those with over 15 years of service.

Termination & severance in Lebanon

Depending on the length of their service, employees in Lebanon are also entitled to mandatory notice periods for any no-fault termination of their contract. This begins at one month for those who have worked less than three years and rises in steps to four months for anyone who has worked for the same employer for 12 years or more.

When termination occurs without fault, including retirement, Lebanese workers should also be paid severance of one month for every year worked, based on their final salary amount.

Lebanon's compulsory social security contributions

In Lebanon, the National Social Security Fund (NSSF) is responsible for managing social security contributions, which provide workers with benefits like health coverage, maternity benefits, family allowances, and end-of-service indemnities.

Employer contribution is at 22.5% of the employee’s gross salary (8% for health insurance, 6% for family allowances, and 8.5% for the end-of-service indemnity). Employee contribution is set at 3% of their gross salary (for health insurance).

Lebanon social security for foreigners

Foreign workers are generally required to contribute to the NSSF if they are legally employed in Lebanon, but they may not be entitled to certain benefits, such as family allowances or end-of-service indemnities, unless there are reciprocal agreements between their home country and Lebanon.

Individual income tax

Lebanon uses a progressive income tax system for individuals, meaning the rate increases with higher income levels. The rates range from 2% to 25%, depending on the employee’s annual income.

Health insurance

Health insurance is primarily provided through the National Social Security Fund (NSSF), which offers healthcare coverage to employees, as well as private health insurance companies.

In addition to the NSSF, many individuals opt for private health insurance plans to supplement the basic coverage provided by the NSSF. These plans offer more comprehensive coverage and flexibility.

hassle-free Lebanese compensation & benefits

Compensation & Benefits

Lebanon compensation laws

Established by the Labour Code of 1946 and increased by Decree No. 7426 in 2012, salaries in Lebanon are subject to a minimum wage of LBP 9,000,000 per month. This converts to approximately $100 per month, depending on the current exchange rate.

13 month salary in Lebanon

Lebanon currently has no legal requirement for a 13th-month salary or any other mandated bonus payment.

Social security for Lebanese nationals

Employers in Lebanon are expected to make contributions to various social security schemes on behalf of each employee. This includes 8.5% of gross pay towards End-of-Service Indemnity, 8% more for the Maternity and Sickness Benefit Scheme, and a further 6% for the Family Benefit Scheme. From these, roughly 3.5% is deducted from the employee while the rest is covered by the business.

Lebanon Employer Of Record Peo

Navigation

Hire in Lebanon

What Is a Lebanon EOR?

What Are the Benefits of a Lebanon EOR?

Why Choose Horizons?

How Does a Lebanon EOR Work?

Labor Laws

Employment contract types

Working hours in Lebanon

Compensation & Benefits

Frequently asked questions

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Frequently asked questions

How does an EOR in Lebanon ensure compliance with local labor laws?

As a local expert, an EOR should be well-placed to help its clients maintain compliance with Lebanese labor laws. As a dedicated service, adherence to regulations is a core function of an EOR. Any competent EOR should have the necessary talent and systems in place to achieve and maintain compliance in all operations.

What are the benefits of using an EOR for hiring in Lebanon?

In addition to the streamlined allocation of resources and the outsourcing of liability for legal compliance, a Lebanon EOR will assume the role of legal employer and local entity for any client it works with. This saves the costly, complex, and risky process of legally establishing a subsidiary within Lebanon independently, an operation that can take months or even years. Working through an EOR allows a company to skip this and begin hiring within weeks or sometimes days.

Lebanon EOR & PEO

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hire employees in Lebanon

What Is a Lebanon EOR?

Save Money And Time with A Lebanon EOR

What Are the Benefits of a Lebanon EOR?

Horizons is Best IN Class

Why Choose Horizons?

Step-by-step Lebanon EOR

How Does a Lebanon EOR Work?

stay compliant with Lebanon labor laws

Labor Laws

Employment contract types

Project-based

Probationary period

Termination

Severance

Fixed-term

Probationary period

Termination notice period

Severance

Indefinite

Probationary period

Termination notice period

Severance

Working hours in Lebanon

Overtime must be compensated in the following way:

For a regular workday:

For a rest day:

For a statutory holiday:

Paid time off

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Sick leave in Lebanon

Less than 6 months of sick leave:

Under 1 year of employment

1-10 years of employment

10-20 years of employment

20+ years of employment

Over 6 months of sick leave

Under 1 year of employment

1-3 years of employment

3+ years of employment

Maternity leave in Lebanon

Annual leave in Lebanon

Termination & severance in Lebanon

Lebanon's compulsory social security contributions

Lebanon social security for foreigners

Individual income tax

Health insurance

hassle-free Lebanese compensation & benefits

Compensation & Benefits

Lebanon compensation laws

13 month salary in Lebanon

Social security for Lebanese nationals

Hire in Lebanon in 24h without your own local entity.

Frequently asked questions

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