Lebanon unions fear salary crisis as Ministry of Finance lacks funds

Beirut
Beirut. (Photo: Unsplash)
AMMAN — Unions in Lebanon have sounded the alarm over a looming crisis following an announcement by the Ministry of Finance that it lacks the necessary funds to pay government employee salaries for the month of June. Approximately 300,000 employees, including civilians, military personnel, and retirees, are at risk of not receiving their salaries.اضافة اعلان

In a statement released last Friday, the ministry's media office explained, "Due to the lack of financial appropriations until that date, the Ministry of Finance hereby informs that it will not be able to pay salaries, allowances, wages, and the stipulated increase for the month of June before the arrival of Eid al-Adha” Alsharq Al-Awsat reported.

The head of the General Labor Union, Bashar al-Asmar, expressed deep concerns regarding the severity of the situation.

Without parliamentary approve, salaries cannot be paid
He revealed that the Ministry of Finance's decision stemmed from the absence of reserves in the 2023 budget. The ministry is currently relying on the "duodecimal rule," which governs the allocation of funds and salaries in the absence of an approved general budget due to the ongoing presidential vacuum.

Al-Asmar emphasized, "The minister of finance cannot exceed or utilize the budget reserve without parliamentary approval of a law allowing the opening of new appropriations."

Request to parliament has been made
He further stated that the ministry has submitted a request to the Parliament to authorize the allocation of funds for salaries to military and civilian personnel, as well as social assistance supplements amounting to six times the basic salary.

The approval of these laws by the General Assembly of the Parliament is necessary for the Ministry of Finance to proceed with salary payments.

Asmar indicated that intensified communication with the Speaker of Parliament, Nabih Berri, and other relevant stakeholders would occur after the upcoming presidential election session. He acknowledged that convening sessions during the presidential and caretaker government absence, under the "legislation of necessity," is subject to debate and requires overcoming differences to secure the necessary funds.

As the situation worsens, Lebanon's unions are highlighting the urgent need for solutions and expressing their readiness to take more forceful actions, including strikes and street protests, if a resolution is not reached promptly. The crisis underscores the deep economic challenges facing the country since 2019.


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