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Start hiring nowHumans have lived in Lebanon for around 5000 years. It was part of Phoenicia and the Roman and Byzantine Empires. Today? Lebanon may no longer be part of an empire, but it does have one of the most underrated tech talent pools in the world. Despite years of economic turbulence, the country's software and cybersecurity sectors grew by 18% in 2024, and remote work now accounts for 46% of tech employment. Engineers there work for companies in Berlin, Toronto, and San Francisco, all without leaving Beirut. The infrastructure may have issues in some parts of the country, but the talent is world-class.
What makes Lebanese professionals especially valuable is their multilingual fluency and cultural agility. Most are proficient in Arabic, English, and French, with many speaking all three daily. That linguistic range translates into real business advantage. You can hire a developer who codes in Python by day and pivots seamlessly between client calls in Paris and London by evening. Tech salaries for software engineers range from US$46,000 to $80,000 for senior AI and machine learning roles, far below comparable talent in Western markets.
The country also punches above its weight in digital skills adoption. About 82% of software engineers are under 35, and reports indicate that over 81% use AI tools regularly in their work. Women make up 27% of the tech workforce, above the global average of 16%. Companies are actively recruiting across software development, blockchain, data science, and cybersecurity, with digital transformation expert Elias Al-Ashkar noting that "Lebanese engineers and programmers work for institutions in Europe and the Gulf, bringing foreign currency into the Lebanese economy."
In recent years, hiring in Lebanon has been recognized as more than just a backup plan for recruiters. It's a strategic hiring destination for globally distributed teams who value skill, adaptability, and cost efficiency.
The Lebanese labor market at a glance
The Lebanese workforce is currently balancing the economic crisis and the digital economy. The employed workforce is estimated at 1.93 million, with total unemployment at 11.5%. Youth unemployment spikes at 23.7%, with women marginally higher at 14.8%. The economy is largely informal, with over 62% of the employed workforce having informal jobs.
But below the surface of these statistics, an economic phenomenon is taking shape. Remote work has allowed many skilled professionals to work outside the country, and almost half of engineers worked in this way in 2023. The tech workforce expanded by an estimated 19.3% in 2025. More than 8,000 jobs were created by Lebanese startups in 2024, with 76.2% of the jobs in the services sector. The most sought-after jobs were in software development, digital marketing, and cybersecurity. Employers and recruitment firms target software developers, data analysts, blockchain engineers, and DevOps engineers.
But the skills gap is a stark reality. A concerning 88% of Lebanese employers report a lack of tech-enabled talent with relevant qualifications. Even more frustrating to see is a mismatch of what skills graduates possess and what Lebanese organizations are seeking. In particular, organizations are looking for developers with advanced knowledge of Python, SQL, and cybersecurity certifications. They also emphasize soft skills such as critical thinking, teamwork, and emotional intelligence, with many employers citing these as critical to workforce success.
Remote work is also on the rise in Lebanon. A number of Lebanese professionals are now working with international clients in Europe and the Gulf, injecting foreign currency into the economy. This change allows for a reduction in overhead costs for companies while still maintaining quality talent. For companies pursuing global expansion, this is the best situation. You gain driven engineers who understand complex international relations and can work in various time zones.
How to hire employees in Lebanon
If you wish to hire in Lebanon, you have two primary avenues to consider. Each route has trade-offs, and the right choice hinges on whether you're testing the market or committing to long-term growth.
Setting up a local entity in Lebanon
Creating a legal business entity in Lebanon allows you full operational control. You have to register your business in Lebanon through the Ministry of the Economy and Trade, get a tax ID number, and adhere to local employment laws. This option is best for companies expecting to have a long-term presence or a large number of employees in Lebanon.
However, this route takes months and contains compliance and regulatory complexities. You also have to deal with the administrative side of payroll, employee benefits, and the social security system.
Partnering with an Employer of Record (EOR)
A Lebanon EOR allows you to engage employees without a local business entity. The EOR acts as the legal employer and is responsible for compliance with payroll, benefits, tax withholdings, and end-of-service indemnity calculations. You have full authority over the management of employees and the work to be accomplished, while the EOR ensures that the terms and conditions of employment are adhered to.
The EOR model is best for companies with geographically distributed teams, short-term projects, or those aiming to test the waters before a full-scale deployment. The time to onboard is measured in days and weeks, compared to the months required to set up a legal entity.
Employment contracts in Lebanon
While employment contracts are optional, they are still highly recommended. Most contracts are written in Arabic, and translated for foreign workers. Typical components of a contract include the identification of the two parties, effective date, position, responsibilities, place of employment, salary and payment information, hours of work, and details about social security.
Lebanon recognizes both temporary and permanent employment contracts. Temporary contracts are for short-term employment on a specific project. Permanent, or indefinite, contracts are employment agreements that do not specify an end date. A period of probation is normal, but not required. A written non-compete clause is valid only if its scope and area are limited to a reasonable period of time (generally between one and two years) and it is necessary to protect an employer's legitimate interests. Courts will set aside clauses that are unreasonable in their restrictions.
Working hours, holidays, and leave
In Lebanon, the workweek is capped at 48 hours across 6 days, with 8-hour shifts per day. Employees should have a minimum of 9 hours off between shifts and a mandatory 36 hours of time off per week. This 36-hour period usually falls on Sundays. Employees earn 15 days of paid annual leave after completing one year of service. They can accumulate up to two years of unused leave, and while employees may choose their leave dates, final approval rests with the employer.
Lebanon has 13 national holidays each year. More leave laws exist, including sick leave, maternity leave (10 weeks full pay), and other forms of leave, though they are not as common. In 2025, laws added a definition for part-time work. To qualify as a part-time employee, you should be working between one-third and two-thirds of the hours of a full-time employee.
Employee benefits and social contributions
Social security contributions in Lebanon are handled through the National Social Security Fund (NSSF). Employers' social security contributions total 22.5% of an employee's gross salary, covering three main benefits within the NSSF. The specific breakdown of employer contributions is as follows:
- End of service indemnity (pension/severance). 8.5% of the employee's total salary, with no set maximum.
- Sickness and maternity benefit scheme. 8% of the employee's salary, up to a maximum contribution base of LBP 90 million per month.
- Family benefit scheme. 6% of the employee's salary, also subject to a maximum contribution base of LBP 12 million per month.
Employees also contribute to the NSSF, though the employer bears the larger share. Employers with 15 or more employees must develop a regulatory program approved by the labor authority to coordinate their working relationships. End-of-service indemnity is a significant benefit, calculated based on length of service and final salary, and must be paid upon termination.
Payroll and taxation in Lebanon
Employers must process payroll, incorporate tax withholdings, and account for social security payments into the employee's compensation package. Each employer must also register with the Lebanese tax authorities and obtain a tax identification number as well as enroll all employees into the NSSF.
Salary payments are done on a monthly cadence, usually through bank transfers, and maintaining flexibility in recordkeeping is essential. Payroll-related income tax must also be submitted monthly and is on a progressive sliding scale. Other social security payments must be submitted on a monthly basis to NSSF.
Employers are subject to substantial penalties and/or exposure to prosecution for violations pertaining to any of these taxes. To automate and streamline these functions, employers use payroll processing software to manage compliance with local tax, and social security contributions. Given Lebanon's currency volatility and economic conditions, managing payroll in Lebanese pounds while accounting for foreign currency earnings (common in remote tech roles) requires careful planning and frequent adjustments.
Employee vs. contractor classification
Lebanese labor law does not explicitly define independent contractors, which creates a gray area. Courts evaluate the actual working relationship rather than what the contract says. The key question is control-if you dictate how, when, and where work gets done, Lebanese authorities will likely classify that person as an employee.
Indicators of an employment relationship include fixed working hours, regular salary payments, integration into the company structure, and use of employer-provided tools and equipment. Independent contractors typically work on specific projects with defined deliverables, set their own schedules, use their own resources, and invoice for services.
Misclassification penalties can result in back payments for social security, employee benefits, and potential penalties. When in doubt, structure the relationship as employment or consult with local legal experts to ensure compliance.
Termination and severance in Lebanon
Termination in Lebanon requires just cause or mutual agreement. Employers cannot dismiss employees arbitrarily. Valid reasons include serious misconduct, repeated performance failures after documented warnings, or economic necessity. Notice periods depend on length of service and contract terms, but employers must provide written notice and follow proper procedures to avoid wrongful termination claims.
End-of-service indemnity is mandatory for all employees. The calculation is based on tenure:
- One month of salary for each year of service during the first five years
- Two months of salary per year for years six through ten
- Three months of salary per year for years beyond ten
The indemnity is based on the employee's last drawn salary and must be paid within 30 days of termination. Employees dismissed for serious misconduct may forfeit their indemnity rights. In cases of wrongful termination, courts can order reinstatement or award damages equivalent to three months' salary. Employers should document performance issues thoroughly and follow Lebanese labor procedures to minimize legal exposure.
Work permits and immigration
Foreign nationals need a valid Lebanese work visa to legally work in the country. The employer initiates the process by submitting an application to the Ministry of Labor on behalf of the employee. Required documents typically include a valid passport, employment contract, medical certificate, criminal background check, educational credentials, and proof of accommodation.
Work permits are job-specific and employer-specific, meaning employees cannot change employers without obtaining a new permit. The initial permit is usually valid for one year and must be renewed annually. Processing times vary but generally take between four and eight weeks.
Employers must demonstrate that no qualified Lebanese nationals are available for the position, though this requirement is often waived for specialized technical roles in high demand. Employees operating without proper work authorization face fines, deportation, and potential bans on re-entry. Employers who hire unauthorized workers can also face penalties and legal consequences.
How Pebl helps hire in Lebanon
When you're ready to hire in Lebanon, nobody makes it easier than Pebl.
Our employer of record services in Lebanon and 185+ countries worldwide, handle contracts, payroll, benefits, and regulatory requirements so you can skip the entity setup and focus on building your team. If you want to start hiring talent in days instead of months, get in touch to learn more.
FAQs: Hiring in Lebanon
You've navigated the legal requirements and compliance details. Now for the questions that shape day-to-day operations and hiring decisions.
What is a good salary in Lebanon?
A "good" salary in Lebanon depends on an employee's location and lifestyle, but a monthly income of approximately US$1,000 to $1,500 (LBP 25 million to 37.5 million) is considered above average, while a salary around US$2,000+ (LBP 50 million+) would be considered very good, especially in areas like Beirut, which has higher living costs.
Can I hire in Lebanon without a local business entity?
Absolutely. By collaborating with an EOR, you can recruit employees in Lebanon and avoid the need to establish a legal entity. The EOR takes on the role of the legal employer, handling contracts, payroll, social security, and compliance with the laws of Lebanon. This way, you can quickly build teams and assess the market without incurring the expenses and taking the time for entity establishment.
What jobs are in high demand in Lebanon?
Most of the high-demand employment in Lebanon is in tech, and it's dominated by a need for positions such as software developer, data analyst, cybersecurity, blockchain developer, DevOps, and digital marketing. As companies digitalize and embark on comprehensive transformations, there is a strong demand for UX/UI design and cloud architecture. There are also significant needs across the economy outside of tech, which include healthcare, financial analysis, project management, and construction and infrastructure.
Disclaimer: This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided "as is," and no representations are made that the content is error-free.
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