Employer of Record (EOR) in Lebanon
An EOR in Lebanon allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment from payroll processing to compliant administration.
Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Lebanon.
Quick Overview of EOR in Lebanon
Expanding into Lebanon doesn't have to mean drowning in paperwork or hefty setup costs. With an Employer of Record (EOR), you can bypass the complexities of local regulations and quickly hire employees, all while maintaining compliance with Lebanon's labor laws. From payroll processing and tax compliance to benefits management, an EOR takes care of the legal nitty-gritty like National Social Security Fund (NSSF) contributions, so you can focus on growing your business without the need to set up a costly local entity.
The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Establishing a local entity in Lebanon can cost anywhere from USD 15,000 to USD 30,000 plus the cost of maintaining human resources (HR), legal assistance, accountants and more. It can also become highly administrative. By partnering with an EOR, you can avoid these setup costs and enter the market faster, avoiding the overhead of a physical office. This is especially beneficial for startups, SMEs, and businesses testing new markets, who need to act quickly and comply with complex local regulations.
How an EOR Works
Atlas HXM provides EOR services that ensure your business remains compliant with Lebanon's labor laws while you focus on growing your operations, free from administrative and legal burdens.
Candidate Selection
Atlas HXM does not recruit candidates but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Lebanese rules, and configuring payroll and statutory obligations correctly.
Employment Contracts
Atlas HXM drafts and administers employment contracts in compliance with Lebanese labor law. Contracts must be in Arabic as required by law, and we clearly outline employment terms to reduce the risk of future disputes, such as the following:
Job title and responsibilities
Salary, benefits, and working hours
Leave entitlements and notice periods
Termination terms and conditions
Payroll & Benefits Management
Payroll is processed in Lebanese pounds (LBP), including:
Accurate tax withholdings and NSSF contributions
Statutory benefits such as sickness and maternity coverage, family allowances, and end-of-service indemnities
The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Lebanon's laws.
Ongoing HR Support
Provides HR support, including: Leave management, employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.
What to Choose: EOR vs PEO
Work Life in Lebanon
Lebanon's employment framework is designed to balance operational needs with strong employee protections. Here's what you need to know:
Employment Types:
Permanent: Ongoing employment under indefinite-term contracts with full statutory benefits. .
Fixed-Term: Hired for a specific project or defined duration. Employees on fixed-term contracts of 2 years or longer are entitled to the same dismissal indemnity as permanent employees. No notice or severance is usually required at natural expiry, unless the 2-year threshold is met, then standard rules apply.
Temporary: Short-term assignments;
Probation Periods: A maximum of 3 months for all positions, as stipulated by Lebanese Labor Law. Probation periods must be explicitly stated in employment contracts. During the probationary period, the employer may rescind the contract without indemnity or prior notice. The EOR ensures that all terms comply with Lebanese labor law.
Working Hours & Overtime: In Lebanon, the maximum workweek is 48 hours, with a standard of 8 hours per day. Employees must receive a minimum 36-hour continuous rest period weekly For eligible employees, overtime is permitted in emergency cases with daily hours capped at 12 hours per day, paid at a minimum of 150% of the regular hourly wage. Minors under 18 are prohibited from working more than 6 hours per day or performing overtime.
The EOR ensures that all overtime is calculated correctly and that employee work hours comply with local regulations.
Leave Entitlements
Leave Type | Eligibility / Duration | Payment / Notes |
|---|---|---|
Annual Leave | 15 working days per year after the first year of employment, Total annual leave increases with tenure | Full pay; employer may determine leave dates based on operational needs |
Maternity Leave | 10 weeks (before and after delivery) | 100% salary paid by employer; While the law stipulates that the National Social Security Fund (NSSF) is intended to cover a portion of these costs, dismissal during maternity leave is prohibited |
Paternity Leave | 3 days | Lebanese labor law does not guarantee statutory paid paternity leave for fathers. Any time off for new fathers is entirely subject to your employer's discretion or company policy. |
Sick Leave | The statutory sick leave scales (combining full pay, half pay and tenure) Varies by length of service (15 days to 2.5 months at full pay, followed by equal period at half pay) | Based on medical report; sickness benefits paid by employer with the potential for partial reimbursement from the National Social Security Fund (NSSF) depending on the employee's contribution history and the duration of the illness |
Public Holidays | All statutory holidays | Employees are entitled to time off on all official public holidays |
Payroll & Benefits: Wages are paid in Lebanese pounds (LBP), with the minimum wage set at LBP 18,000,000 per month as of 2024. Atlas HXM manages payroll in LBP, NSSF contributions (employer and employee), end-of-service indemnities, and statutory benefits. Supplemental benefits can include private health insurance, transportation allowances, meal allowances, housing allowances, and performance bonuses.
Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Lebanon's labor laws while businesses can focus on operations without administrative burdens.
What to Choose: Indirect vs Direct EOR
Taxes & Compliance
Lebanon operates on a calendar-year tax system, running from January 1 to December 31. Employers must withhold and remit income tax from employee salaries on a monthly basis, submit NSSF contributions monthly, and file annual tax returns with the Lebanese tax authorities by March 31 of the following year.
Category | Details |
|---|---|
Employer Payroll Tax | NSSF contributions: ~21.5% of gross salary (sickness & maternity: 7%, family allowances: 6%, end-of-service indemnity: 8.5%) |
Employee Payroll Tax | Progressive income tax: 2%–25% of taxable income; NSSF employee contribution: ~2% of gross salary |
Pension System | Transitioning from lump-sum end-of-service benefits to a new NSSF pension scheme introduced in December 2023; new scheme to be implemented within 2 years; retirement age under new scheme: 64 years |
VAT & EOR Costs: Lebanon applies a standard VAT rate of 11% to most services, including EOR fees. EOR services are generally subject to standard VAT rates as professional services. Businesses should clarify with their EOR provider whether VAT applies to service fees and factor this into total cost calculations.
Atlas HXM handles tax compliance, including progressive income tax calculations, NSSF contribution remittances, annual tax filings, and regulatory updates, ensuring businesses remain compliant with local laws while minimizing administrative burden.
Termination
Employers must provide written notice before dismissal, with statutory notice periods ranging from 1 month to 4 months depending on length of service. Severance pay (termination indemnity) is required for dismissals not related to employee behavior or negligence, calculated at 1 month's salary per year of service (minimum half a month for those with less than 1 year), capped at 10 months' wages for certain worker categories.
Employees cannot be dismissed during annual leave or maternity leave.
The EOR helps ensure proper handling of terminations, including notice periods, severance calculations, final wages, NSSF deregistration, and required documentation.
5 Things to Look for in an EOR Provider in Lebanon
Local expertise and knowledge of Lebanese labor laws, NSSF regulations, and immigration requirements.
Advanced technology for payroll, reporting, and HR system integration.
Experience in your industry and the broader MENA region.
Strong compliance track record and relationships with government agencies and legal advisors.
Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).
Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Atlas HXM's unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2026, Atlas HXM combines compliance, technology, and global expertise.
FAQs
Do I need a legal entity in Lebanon to hire employees there?
No. By using an EOR in Lebanon, you can hire employees in the country without establishing a local legal entity. The EOR serves as the legal employer of record, allowing you to hire compliantly and quickly without the time and cost of setting up a local company.
What is the minimum wage in Lebanon?
Lebanon's minimum wage was last set in 2024 at LBP 18,000,000 (Lebanese pounds) per month, determined by a commission comprising representatives from the Ministry of the National Economy, employer associations, and employee unions.
What are the standard working hours in Lebanon?
Lebanon's labour law stipulates that regular working hours cannot exceed 48 hours per week, with a weekly rest of at least 36 uninterrupted hours.
What is the probationary period in Lebanon?
Lebanese Labor Law allows employment contracts to include a probationary period of up to 3 months, during which the employer may rescind the contract without indemnity or prior notice.
What are the notice period requirements for termination in Lebanon?
The statutory minimum notice period is 1 month for less than 3 years of service, 2 months for 3–6 years, 3 months for 6–12 years, and 4 months for more than 12 years of service.
What severance pay is required in Lebanon?
Employees dismissed for reasons other than their own behavior or negligence are entitled to 1 month's salary per year of service (at least 1 year of service) or half a month's salary (less than 1 year). Severance pay cannot exceed 10 months' wages for certain worker categories.
What are the annual leave entitlements in Lebanon?
Employees are entitled to 15 working days of paid annual leave per year Total annual leave increases with tenure
What maternity and paternity leave is available in Lebanon?
Female employees are entitled to 10 weeks of fully paid maternity leave.Lebanese labor law does not guarantee statutory paid paternity leave for fathers. Any time off for new fathers is entirely subject to your employer's discretion or company policy.
How does the NSSF work in Lebanon?
The National Social Security Fund (NSSF) covers sickness and maternity benefits, family allowances, and end-of-service indemnities. Employer contributions are approximately 21.5% of gross salary, while employee contributions are approximately 2%.
What are the income tax rates in Lebanon?
Lebanon's individual income tax is progressive, ranging from 2% to 25% based on taxable income, for the fiscal year running January 1 through December 31.