Pension
Lebanon introduced amendments to their social security system in December 2023 to replace its old lump-sum benefits with new pension benefits paid by the National Social Security Fund. The new scheme is expected to be implemented within the next 2 years, and its contribution rates are yet to be determined. Insured members' retirement age is 64 years.
Under the new pension scheme, each insured member will have an individual account where they can contribute, and where the interest will accumulate. They will be eligible for pension if they have contributed for at least 15 years. The amount of pension will depend on the age of the employee, number of years of contributions, and a conversion factor.
Under the old system, there is no pension scheme. Instead, the benefit is paid as a lump sum. To be eligible for this benefit, employees must have reached the age of 60 and have at least 20 years of service. The amount of benefit paid to retired employees is equal to the final month's earnings multiplied by the years of service (up to 20 years) and an additional half month's salary for each year of work beyond 20 years of service.
Dependents/Survivors Benefits
The amendments made to the social security law in Lebanon in December 2023 introduced survivors pensions for insured members' families. Beneficiaries include surviving spouse who had been married for at least 2 years or have a child, children under the age of 18 years or 25 years if they are studying. The pension for spouses continue till they die or remarry, and the remaining share is transferred to the children. The amount of pension depends on whether the insured members was receiving pension or not. Survivors' pension is 80% of the insured members calculated pension, distributed as - 40% of the pension will be paid to the surviving spouse and the other 40% will be divided equally among dependent children.
Under the existing system, family benefits are provided to survivors of a deceased insured person. Survivors include spouses, children, parents, and siblings of the deceased. The deceased must have been insured for at least six years. Benefits are equal to 100% of the last monthly wage multiplied by the number of years of contribution, divided among the survivors. A funeral grant of 150% of the legal monthly minimum wage is also provided to survivors.
Upon the death of the insured employee due to work-related injury or disease, the disability pension of the deceased employee is transferred to their beneficiaries. The widow or widower is entitled to 100% of the employee's pension for three years.
Invalidity Benefits
The amendments made to the social security law in Lebanon in December 2023 introduced disability pensions for insured members. Under the new pension scheme, each insured member will have an individual account where they can contribute, and where the interest will accumulate. Insured members will be eligible for disability pension if they have lost at least two-thirds of their ability to work and have paid contributions for at least 3 years before the date of confirmation of the disability. The pension is calculated based on the years of contribution, age of the member, and conversion factor.
Under the existing system, the National Social Security Fund of Lebanon provides disability benefits to insured employees assessed as having disability of over 50% (the disability prevents them from doing their work and causes their employment contract to be terminated). The benefit is paid as an end-of-service lump sum benefit equal to the employee's last monthly salary before the disability began, multiplied by the number of years of contributions made. The minimum benefit is 20 times the insured person's final monthly salary.
A disability pension is also paid to employees who have suffered a work injury or occupational disease causing a total or partial permanent disability. If the disability is more than 30%, a pension equaling their last wages is paid for 12 months (though this may be extended to up to 24 months). Employees with less than 30% permanent disability receive a lump-sum amount proportionate to their percentage of disability. In case of temporary disability, the employer must pay the full wages for the first ten days of the disability and 75% of the employee's daily wages after that until full recovery, death, or certification of permanent disability. People who require constant care are eligible to receive additional financial assistance.