According to the latest data published by Lebanon’s Ministry of Finance (MoF), personnel costs increased by a yearly 3.3%, to reach $3.36B by August 2017. In fact, the growth in personnel costs was mainly due to the increase in salaries and wages and growth in retirement and end of service compensations.
The sub-component “Salaries, wages, and social benefits” rose by 2.4% year-on-year (y-o-y) to reach $2.19B by August 2017. In details, this increase was mainly due to a rise in basic salaries of military personnel by $87.56M to reach $1.04B by August 2017. Basic salaries to civil personnel and customs personnel also witnessed a rise of $6.63M and $5.97M.
Overall, Personnel costs constituted 66.8% of Current primary expenditures by August 2017, compared to 65.8% and 67.1% in the same periods of 2015 and 2016, respectively. As such, the MoF explains The main reason behind the increase in the share of salaries, wages and related benefits of primary expenditures is due to a lower base level of total primary expenditures that decreased by 5.4 percent year-on-year by August 2017, driven mainly by lower payments to municipalities.
Breakdown of Salaries, Wages and Related Benefits by August 2017 (in $M)
| Basic Salaries | Total | |||
| 2016 | 2017 | 2016 | 2017 | |
| Military Personnel | 994 | 1,035 | 1,312 | 1,399 |
| Education Personnel | 458 | 366 | 499 | 406 |
| Civilian Personnel | 149 | 153 | 202 | 208 |
| Government contribution to employees cooperative | – | – | 106 | 149 |
| Customs Salaries | – | – | 16 | 22 |
| Total | 1,603 | 1,555 | 2,137 | 2,188 |
Source: MoF