President Aoun signs
salary scale and tax laws

Employees will receive

their first raise pay in September

President Michel Aoun has signed the salary scale law that aims to increase the wages of public sector employees. He has also signed a tax hike law to finance the pay rise.

The two laws will be published in a special issue of the Official Gazette and will thus be put into effect.

Last July, Parliament approved 38 articles pertaining to the salary scale which includes raising the minimum monthly salary of public servants to $450 making it equal to that of private sector employees. The salary scale law also gave all public employees three pay grades.

Parliament also ratified 19 taxes which included raising the Value Added Tax (VAT) to 11 percent from ten percent.

Moody’s said last month that the tax hikes will pave the way for the ratification of the first public budget since 2005 and that a normalized budget process would enable the State to lower the fiscal deficit. The credit ratings agency also said that the resulting improvement in transparency and predictability of public finances would facilitate donor funding.