Cabinet Adopts Alternative Wage Hike Decree, Rejects Nahhas'

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The cabinet on Wednesday approved a wage increase decree other than that proposed by Labor Minister Charbel Nahhas, amid the objection of Free Patriotic Movement ministers.

Briefing reporters after the cabinet session, Information Minister Walid al-Daouq said: “A wage increase decree other than that proposed by Minister Nahhas was discussed and it received the required majority of votes and this is the democratic game.”

“The decree we proposed was rejected and they adopted a hybrid plan, and I announce to the Lebanese that the minimum wage did not hit the mark of LBP 1.2 million or even LBP 960,000 as they were expecting,” Al-Jadeed television quoted Nahhas as saying after leaving the session.

MTV said Prime Minister Najib Miqati opened the session by “calling on everyone to respect each other and resort to constitutional institutions,” saying “let no one try to intimidate the premier or threaten to boycott cabinet.”

“Under the new decree, a 30% pay raise will be granted to those earning less than LBP 1 million (per month) and a 20% pay raise will be granted to those earning more than LBP 1 million,” LBC television reported, noting that “dismay showed on the faces of FPM ministers as they left the session.”

But according to Future News television, the minimum wage has been raised to “LBP 600,000” and “employees earning less than LBP 1 million will get a raise of LBP 150,000, those earning from LBP 1 million-LBP 2 million will get a raise of LBP 225,000, and those earning more than LBP 2 million will get a raise of LBP 275,000.”

Comments 4
Default-user-icon Reader (Guest) 07 December 2011, 22:14

Basic economics: Minimum wage = bad.

Default-user-icon Reader (Guest) 08 December 2011, 08:21

It's basic economics that increasing minimum wage decreases the number of jobs. Minimum wage is a bad idea for Lebanon. There's plenty of real things the government could do to bring economic change to the country. This will only benefit Lebanese workers in the VERY short run and illegal migrant works in the long run.

Thumb ado.australia 08 December 2011, 17:18

Reader... "Minimum wage is a bad idea"? Really? There is nothing more important than lifting citizens out of poverty and increasing the middle class. Before the war, Lebanon had the highest % middle class in the middle east. The size of the middle class defines the health of the economy what school of economics did you study at to reach that conclusion... The same as one that saadadine went too? I don't want to get political over your stupid comment, but damn... That is the most ignorant comment I've heard on this site.... And we are on naharnet! Congratulations!

Default-user-icon Reader (Guest) 08 December 2011, 17:30

You can call me names and call my opinion ignorant but it's the truth and many economists would agree with me. Don't make this political because it isn't. There are plenty of better things the government could have done to help the middle class in Lebanon.