Nahhas calls 40% min wage increase ” scientific”

Economy Minister Nicolas Nahhas defended on Thursday the cabinet’s decision over the increase in the labor minimum wage calling it “scientific.”

“ The decision was scientific, and more than a result of workers’ demands,” Nahhas told Free Lebanon radio.

“It is important that this increase will not lead to inflation or other negative impacts,” Nahhas added.

According to earlier reports Mikati may resort to price controls in order to control inflation as a result of 40 % increase in minimum wages

The economy minister also denied that the cabinet’s decision was taken under pressure,.

March 14 MP Riad Rahhal said on Wednesday that the cabinet “only works under pressure.”

The Lebanese cabinet met at Baabda Presidential Palace on Wednesday evening and approved the wage increases that were agreed on Tuesday night between Prime Minister Najib Mikati and the General Workers Union.

Mikati on Tuesday agreed to raise the minimum wage from 500,000 LL to 700,000 L.L, and to raise wages of up to 1 million L.L by 200,000 L.L and wages ranging from 1 million to 1,8 million L.L. by 300,000 L.L