Small Steps To Stability

September 2008 | Political Risk Alert

The government has agreed on and approved a new minimum wage and a LBP200,000 pay increase for all employees in the public and private sectors. Up 67% on the last floor, set in 1996, the new package puts the lower limit at LBP500,000 (US$330) per month, and is projected to cost the treasury US$500mn a year. Although labour unions are disappointed, after asking for a minimum wage of LBP960,000, we think that the new law will be a net positive, being (a) a populist move that could reduce tensions amongst a restive population and (b) a clear indication that

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