Lebanon

Publications

A glimmer of Hope amidst the Pain

Extending Social Health Protection in Lebanon

Social Assistance Response to the Covid-19 Economic Shock in Lebanon: The National Social Solidarity Program

Social protection in Lebanon: Bridging the immediate response with long-term priorities

Social Protection Spending in Lebanon: A deep dive into State Financing of Social Protection

Towards a social protection floor for Lebanon: Policy options and costs for core life-cycle social grants

Vulnerability and Social Protection Gaps Assessment – Lebanon: A microdata analysis based on the Labour Force and Household Living Conditions Survey 2018/19

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Situation and Priorities

Social protection situation

The establishment of a coherent and comprehensive Social Protection system in Lebanon is still in its early stages, despite the existence of numerous schemes. The system is characterized by a multiplicity of actors, mandates and funds, with limited integration and coordination, lack of comprehensive and adequate benefits, and high levels of exclusion. As a result of this, many residents are left with no (adequate) protection for various contingencies throughout their lifecycle, including for unemployment, disability, maternity, old-age, and other socio-economic shocks. This is a cause for major concern in the context of the systemic crisis such as the one the country is currently facing. In addition, the existing fragmented and weak governance system does not enable accountability and efficiency, which can delay major and urgent reforms.

Today, there are six compulsory contributory schemes covering different population groups, with disparities across benefits and contribution fees, the largest of which is the National Social Security Fund, covering formal private sector workers. These schemes cover nearly half the population, while the Ministry of Public Health subsidizes hospitalization services of those who are not enrolled in any social security fund. Today, these schemes face major financial risks that threaten their sustainability. One of the major ongoing reforms is the establishment of a pension scheme for private sector workers, to replace the current failing and grossly inadequate end-of-service indemnity scheme.

In parallel, the government provides cash assistance to the extreme poor through two poverty-targeting programmes (the National Poverty Targeting Programme, funded through international grants, and its expansion during the crisis - the Emergency Social Safety Net Programme, funded through a World Bank loan). With support from ILO and UNICEF, and funding from the European Union, the government is also gradually rolling out rights-based social grants, starting with a National Disability Allowance that aims to cover extra costs of disability for persons with disabilities in Lebanon.

COVID-19 and other crises

Lebanon is currently facing a compounded crisis that is affecting the country’s social, political, economic, financial, and fiscal stability. The repercussions on the social landscape are substantial, with millions of people unable to meet their basic needs, pushing significant numbers into poverty and exacerbating existing vulnerabilities. Social protection is an essential component of this path towards recovery and reconstruction and can form the basis of a new social contract for Lebanon.

In this context, while short-term and emergency measures are essential to provide immediate relief to thousands of people, a paradigm shift from the current fragmented social protection programs and measures into a universal, rights-based, and inclusive system is essential, in line with Lebanon’s international and national commitments.

In fact, a universal and life-cycle approach to Social Protection, is considered by the Civil Society in Lebanon as a key tool to rebuild trust and growth for a country in turmoil. Despite a difficult political and economic environment, efforts are made to move forward with reforms to the social protection system. In this context, the government of Lebanon is currently finalizing a National Strategy for Social Protection. Among its ambitions, is an integrated contributory and non-contributory system that can achieve broader and more inclusive coverage. This includes the design and roll out of out a package of core lifecycle social grants as a foundation for a social protection floor in the country; maintaining, reforming and extending social insurance benefits, and moving towards universal social health protection, with structural reforms to the health financing system.

Visit the Social Protection COVID-19 Monitor

Government and social partner priorities

Develop a National Social Protection Strategy: the ILO is working with the government on finalizing the national social protection strategy to ensure unity in the strategic vision for the sector across institutions and schemes.
Establish a foundation for a national social protection floor: the ILO supported the government in designing and rolling out a National Disability Allowance programme embedded in an existing disability programme under the Ministry of Social Affairs. This is the first of a package of core lifecycle social grants which lay the foundation for a social protection floor.
Approve the Draft Pension law currently in Parliament: with the support of the ILO, a parliamentary sub-committee has reached consensus on a design for a new pension scheme that meets international standards, based on an actuarial valuation and has revised the draft legislation accordingly. Draft law is currently being revised by the joint committees in Parliament.
Sustain minimum benefits at the National Social Security Fund: while the draft law is adopted, the ILO is working with social partners and the NSSF to transition from an end-of-service indemnity into a pension scheme through the implementation of existing legislation. This is expected to improve employers’ compliance with the mandatory enrolment of employees and the declaration of real wages, as it would remove the employers’ liability to pay the majority share of the end-of-service indemnity – which has now largely increased as a result of collapse of the national currency and resulting wage inflation.
Introduce an unemployment scheme: the ILO have also provided technical assistance to the NSSF and MOL in designing and costing an unemployment insurance fund at the NSSF. Draft legislation is currently in parliament.

There is an appetite to move forward with reform to the social protection system, although progress is slow in a difficult political and economic environment.