Ya Libnan

The new wages will increase inflaction by 2 %, Salameh

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Central Bank Governor Riad Salameh told As Safir newspaper in a report published on Monday that the recently announced wage hikes will increase inflaction by 2 percentage points

The Lebanese cabinet on Wednesday approved the wage increase plan that was proposed by PM Nagib Mikati

On Wednesday, According to the Information Minister Walid al-Daouq the minimum wage was raised to 600,000 LL, while wages between 500,000 LL and 1 million LL where raised by 30 percent on the condition that the increase is minimum 150,000 LL and maximum 200,000 LL.

As for wages exceeding 1 million LL, the cabinet agreed to a 20 percent raise as long as the increase does not exceed 275,000 LL.

Head of the General Workers Union Ghassan Ghosn told OTV television on Thursday evening that the wage increase approved by the government “was unfair” to the workers.

“We reject this humiliating wage increase because it doesn’t meet the hopes and expectations of the workers and their demands,” he also told An Nahar newspaper.

A strike is reportedly planned between Xmas and New Year

Moody’s Investors Service lowered last week its outlook on Lebanon’s banking system to negative from stable, citing slowed economic growth and regional political uncertainty.

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9 responses to “The new wages will increase inflaction by 2 %, Salameh”

  1. Ghassan Karam Avatar
    Ghassan Karam

    Mandated increase in wages across the board is never a good idea. It is however understandable when organized labour demands huge wage adjustments for its members. That is part of why it exists. But to see that no politician has even dared raise the issue is lamentable. Yet what is worse is when the head of the central bank seems to pull a figure from the hat by saying that the effect of a $1200 in wages will increase inflation by 2%. I wish he had acted more responsibly to explain the basis for that definitive statement. Was his guess based on a detailed study that he commissioned, was it a pure guess, what would this wage adjustment do to the aggregate wage bill, what would be the overall effect on employment….

  2. Ghassan Karam Avatar
    Ghassan Karam

    Mandated increase in wages across the board is never a good idea. It is however understandable when organized labour demands huge wage adjustments for its members. That is part of why it exists. But to see that no politician has even dared raise the issue is lamentable. Yet what is worse is when the head of the central bank seems to pull a figure from the hat by saying that the effect of a $1200 in wages will increase inflation by 2%. I wish he had acted more responsibly to explain the basis for that definitive statement. Was his guess based on a detailed study that he commissioned, was it a pure guess, what would this wage adjustment do to the aggregate wage bill, what would be the overall effect on employment….

  3. Sebouh80 Avatar
    Sebouh80

    May I ask how Riad Salameh ended with the 2 percent inflation number, because Lebanon as I know lacks any reliable economic statistics sources.

    1. 5thDrawer Avatar
      5thDrawer

      If that 2% is real, then there must have been a huge influx of tourists … which no-one noticed.

    2. 5thDrawer Avatar
      5thDrawer

      If that 2% is real, then there must have been a huge influx of tourists … which no-one noticed.

  4. Avatar
    Anonymous

    May I ask how Riad Salameh ended with the 2 percent inflation number, because Lebanon as I know lacks any reliable economic statistics sources.

    1. Avatar
      Anonymous

      If that 2% is real, then there must have been a huge influx of tourists … which no-one noticed.

  5. Patience2 Avatar
    Patience2

    Well, employers of 10 – 25 employees will probably be more careful than ever now when scheduling shifts and overtime … is more money per person, or more people working, a desirable situation??  I’d layoff the HA’ers, they are paid by their Syrio-Iranoid masters.  Give the increases to loyal Lebanese workers.

  6. Avatar
    Anonymous

    Well, employers of 10 – 25 employees will probably be more careful than ever now when scheduling shifts and overtime … is more money per person, or more people working, a desirable situation??  I’d layoff the HA’ers, they are paid by their Syrio-Iranoid masters.  Give the increases to loyal Lebanese workers.

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