Civil servants, 28 percent of total wage earners, expected to retire this year
Lebanon stands at a critical juncture, where the need for a revolutionary administrative infrastructure has never been more urgent. This will be one of the main challenges of the new appointed prime minister and his team.
The country has faced numerous challenges over the years, including political instability, economic crises, and social unrest. However, these challenges also present an opportunity for transformative change that can lead Lebanon and its citizens towards fairness, justice, fair opportunities, international collaboration, and a thriving job market.
The Lebanese public administration has faced significant challenges over the years, exacerbated by the country’s multifaceted crisis. The Office of the Minister of State for Administrative Reform (OMSAR) has been working on strategies to reform and hinders any redevelop the public administration system. However, the progress has been slow, and the system continues to struggle with issues such as inefficiency, corruption, and lack of resources. OMSAR accomplished a major reconstitution, reparation, and digitization of 600 civil registry records and microfilmed 2.8 million supporting documents, enhancing and safeguarding 1.2 million civil registry records.
Hurdles to be addressed
One of the main problems facing the Lebanese public administration is the lack of effective policy-making and planning. The administrative structures are often outdated and not well-suited to the current needs of the country. This has led to a lack of accountability and transparency, which in turn has eroded public trust in the government. The reform of the Lebanese public administration is necessary to restore public confidence in it, and promoting greater political stability. There is no doubt that the difficult condition of the public administration is the result of the war as well as the lack since 1959, of any serious and effective attempts to reform and improve its public administration. Since more than half a century, Ministries and public agencies have been established without much reference to any kind of planning. This absence of policy making and implementation, and the poor accountability of the public sector undermined the government public service performance.
Another significant issue is the management of human resources. The public sector in Lebanon is known for its inefficiency and lack of motivation among employees. This is partly due to the absence of proper training and development programs, as well as the lack of incentives for performance improvement. The Central Administration of Statistics (CAS) reported that informal employment was 62.4% in January 2022, indicating a high level of job insecurity and lack of formal employment opportunities.
The financial crisis has also had a severe impact on the public administration. The Lebanese pound has lost a significant portion of its value, leading to a decrease in the purchasing power of public sector employees. This has resulted in strikes and protests by public sector workers demanding better wages and working conditions.
The cost of administration
The Lebanese public administration employs approximately 300,000 civil servants, an all high figure if compared to similar economies, with 120,000 in the military and security apparatuses, 40,000 in the education sector, 25,000 in ministries and public administrations, and 115,000 in public institutions and municipalities. As a percentage of total government spending, wages and salaries and related benefits together with salaries of some public institutions averaged at 22 percent in the past ten years, one of the highest expenditure items together with retirement and end of service, debt service, and transfers to the loss making electricity company, “Electricité du Liban”. In 2012, this ratio increased to a little less than a quarter of total government spending
However, there is a significant vacancy rate of 73%, with 19,600 positions unfilled. This shortage is particularly acute among second-grade employees, who are just below the position of director general. Only 20% of skilled employees remain in critical positions, leading to a lack of experienced personnel in leadership roles.
The Lebanese budget for 2025 fails to meet expectations in terms of public administration reform. Despite the government’s efforts to allocate funds and implement changes, the budget figures reveal significant shortcomings. The 2025 budget sets government expenditures at USD 4.779 billion, which is a 38% increase from the 2024 budget. However, this increase is overshadowed by the fact that salaries, wages, and benefits constitute about 53% of spending, leaving only a small portion for investment and development. This imbalance highlights the government’s focus on immediate financial relief rather than long-term structural reforms.
Moreover, the budget projects revenues of USD 4.582 billion, which is a 33% increase from 2024 but still 63% lower than the 2019 budget. This revenue shortfall results in a deficit of USD 196 million, or 4.11% of total expenditures. The deficit indicates a lack of sustainable financial planning and raises concerns about the government’s ability to fund essential public services and reforms.
The budget allocates 241.30 million USD for the armed forces, but this does not address the broader issues of inefficiency and lack of motivation among public sector employees. The high vacancy rate of 73% and the absence of 16 director general positions in public administrations further exacerbate the problem.
The disproportionate allocation of funds towards salaries and benefits, coupled with a significant revenue shortfall, highlights the need for more comprehensive and sustainable financial planning. There are no new study on the elements of the civil administration however an earlier study disclosed that when measured as a percentage of GDP, the ratio of spending on public servants remained almost constant at 7.1 percent because the Lebanese economy experienced a high rate of growth over the period 2007 till 2010, inclusive. The average age of central government employees, excluding military personnel, is around 49 years; 22 percent of those central government employees are expected to retire in the next 5 years. Females are an important component of central government employees, making up 70 percent of central government civil servants, excluding the military and teachers. It is estimated that the public sector employs around 28 percent of total wage earners in Lebanon and 13.5 percent out of total employees. This could be considered to be high by international standards. In recent years, additional recruitment in the public sector, especially in the armed forces and the education personnel, took place in response to major security events or political pressures in the absence of human resources management and planning.
Salary scale
The salary scale for public sector employees in Lebanon has undergone several changes in recent years. The minimum monthly salary for public sector employees has been raised to USD 450. This increase aligns the minimum salary of public employees with that of the private sector. Public employees are given three pay grades immediately upon implementation, with additional grades every two years. The value of these grades depends on the category (first through fifth). For example, an employee in the first category starts at USD 3,000 a month, which can reach up to USD 6,000 toward the end of their service.
Public high school teachers receive three pay grades, while public primary and intermediate teachers receive six pay grades. Contractual employees, including those at the Lebanese University, Green Project, Council for South, and invoice-based workers, receive a high cost of living raise. This includes a 100% increase for the first bracket up to USD 265, and 9% for the second bracket above USD 265 and up to USD 1,000.
Retired civil servants whose salaries are less than USD 400 receive a USD 100 raise, and those above USD 400 receive a USD 132 raise. They also receive a 25% raise of the first bracket up to USD 450. Public employees’ working hours have been extended by five hours per week, now working from 8:00 a.m. to 3:30 p.m., but no longer working on Saturdays.
Overall, civil servant pay in Lebanon is relatively competitive compared to some Middle Eastern countries, but there is still room for improvement, especially in terms of addressing the high vacancy rates and ensuring fair compensation for all employees
Civil servants in the UAE generally receive higher salaries compared to Lebanon. The average monthly salary for a government employee in the UAE is around $3,000 to $5,000, depending on the position and level of experience.
In Saudi Arabia, civil servants also enjoy relatively high salaries. The average monthly salary for a government employee ranges from $2,500 to $4,500, with higher salaries for specialized positions and senior roles. Civil servants in Jordan have a different pay scale. The minimum monthly salary for a public sector employee is around $300, with higher salaries for more experienced and specialized positions. The average monthly salary for a government employee in Jordan is approximately $1,500 to $3,000.In Egypt, civil servants receive lower salaries compared to Lebanon. The minimum monthly salary for a public sector employee is around $200, with average salaries ranging from $500 to $2,000 per month.
The Need for Repositioning
The need to reposition Lebanon on the global stage has never been more critical. To achieve this, it is imperative to establish an agile public sector that will impact competitive business environment that attracts investments, nurtures innovation, and fosters sustainable growth. By creating a favorable regulatory framework, simplifying bureaucratic processes, and offering incentives for businesses, Lebanon can become a magnet for international and local entrepreneurs. A thriving business ecosystem will not only drive economic development but also create jobs, retain talent, and bring back the highly skilled professionals who have left the country. Embracing modern telecommunication and energy policies, along with entrepreneurial solutions, will enable Lebanon to harness its full potential and secure its place as a dynamic and forward-thinking nation ready to compete on the world stage. By adopting revolutionary telecommunication and energy policies, coupled with entrepreneurial solutions and ministries dedicated to fostering growth and equal development across all sectors, communities, and regions, Lebanon can reposition itself as a beacon of innovation and progress.
A revolutionary administrative infrastructure must prioritize fairness and justice for all citizens. This involves creating transparent and accountable governance structures that ensure equal access to resources and opportunities. By implementing robust anti-corruption measures and promoting the rule of law, Lebanon can build a society where justice prevails, and citizens have confidence in their government. Fairness and justice are the cornerstones of a stable and prosperous nation, and they must be at the heart of any transformative change.
Maan Barazy is an economist and founder and president of the National Council of Entrepreneurship and Innovation. He tweets @maanbarazy
The views in this story reflect those of the author alone and do not necessarily reflect the beliefs of NOW
