Lebanon public workers strike as fuel and VAT hikes offset pay rise

Lebanon's public sector employees began a two-day general strike on Tuesday, rejecting a government-approved salary increase they say fails to meet their demands, as the country's economic crisis continues.

The public sector workers' union criticised the government's decision, saying it "increased burdens on employees without any tangible return" and accused authorities of exploiting workers' suffering by imposing taxes and fees that exceed the cost of the salary increase.

Last week, Lebanon's cabinet approved a salary boost equivalent to six monthly payments for public sector employees, calculated based on 2019 wage levels, which ranged between $100 and $120 per month.

The increase will be paid as a separate monthly allowance and will not be integrated into the base salary of around 300,000 employees and retirees.

The association is demanding an immediate increase equivalent to 10 extra monthly salaries added to the base wage, as well as a reduction in the working week from five days to four, and working hours to be 8am and 2pm.

It also called for raising the daily transportation allowance for public administration workers to 1.5 million Lebanese pounds, approximately $16.6.

The wage dispute comes just days after protests erupted in Beirut over government measures aimed at funding the salary increases.

Last week, demonstrators blocked key roads in central Beirut and a highway south of the capital after the cabinet approved a 25 percent rise in gasoline prices, and an increase in value-added tax from 11 to 12 percent to help finance the pay package.

The overnight decision also included a new excise charge on fuel and additional fees on shipping containers, as part of a broader plan estimated to cost around $800 million annually.

Unions warned that the tax hikes would drive up prices of goods, transport and basic services in a country already struggling with soaring living costs.

The General Confederation of Lebanese Workers accused the government of placing the burden of funding public sector wages on the working class rather than pursuing alternative revenue sources.

The measures have revived memories of October 2019, when a proposed tax on WhatsApp voice calls sparked nationwide protests that escalated into a broader movement against corruption and economic mismanagement, eventually forcing the resignation of then-Prime Minister Saad Hariri.

According to Prime Minister Nawaf Salam, there are currently 7,169 employees working in public administration offices, within a broader public sector that includes around 120,000 retirees, 119,000 security personnel and 50,000 education staff.

Lebanon has been grappling with a severe economic crisis since 2019, which led to a sovereign default in 2020 on roughly $30 billion in international bonds, significantly eroding public sector wages and pushing large segments of the population into poverty.