According to the latest data published by Lebanon’s Ministry of Finance (MoF), personnel costs increased by a yearly 4%, to reach $4.87B by December 2016. In fact, the growth in personnel costs was mainly fueled by the increase in salaries wages and social benefits as well as the transfers to public institutions to cover salaries.
The sub-component “Salaries, wages, and social benefits” rose by 2% year-on-year (y-o-y) to reach $3.16B by December 2016. In details, this increase was mainly due to a rise in basic salaries of military by $75.62M to reach $1.51B by December 2016. Basic salaries to education personnel also witnessed a rise of $15.92M to reach $616.92M by December 2016.
Overall, Personnel costs constituted 66% of Current primary expenditures by December 2016, compared to 67% and 66% in the same periods of 2015 and 2016, respectively. As such, the MoF explains that the slightly smaller share of Personnel costs out of the current primary expenditures is mainly linked to an increase in the base of current primary expenditure. In fact, these expenditures, which are current expenditures excluding debt service, climbed by 6% y-o-y to reach $7.40B by December 2016, despite a $208.30M decline in Transfers made to EDL.
Breakdown of Salaries, Wages and Related Benefits by December 2016 (in $B)
| Basic Salaries | Total | |||
| 2015 | 2016 | 2015 | 2016 | |
| Military Personnel | 1.44 | 1.51 | 1.92 | 1.95 |
| Army | 0.92 | 0.97 | 1.24 | 1.25 |
| Internal Security Forces | 0.39 | 0.42 | 0.51 | 0.53 |
| General Security Forces | 0.10 | 0.10 | 0.13 | 0.13 |
| State Security Forces | 0.03 | 0.03 | 0.04 | 0.04 |
| Education Personnel | 0.60 | 0.62 | 0.66 | 0.70 |
| Civilian Personnel | 0.23 | 0.22 | 0.31 | 0.30 |
| Government contribution to employees cooperative | – | – | 0.18 | 0.18 |
| Customs Salaries | 0.00 | 0.00 | 0.02 | 0.02 |
| Total | 2.27 | 2.35 | 3.10 | 3.16 |
Source: MoF