SOCIAL SECURITY CONTRIBUTIONS 

The categories of Social Security contributions are as follows: 

1. Medical and Maternity 

The contribution is 15% payable on the basis of 12% by the firm and 3% by the employee and is directly related to the monthly salary subject to a ceiling when the monthly salary exceeds 3 times the minimum wage. The following computation reveals the treatment : 

1- Salary doesn't exceed 3 x Minimum Wage(3 x 300,000 = 900,000)

E.g. (Salary 400,000 LL.)

Employee's monthly share : 3% × 400,000 = 12,000 LL.

Company's monthly share : 12% × 400,000 = 48,000 LL. 

2- Salary exceeds 3 x Minimum Wage(3 x 300,000 = 900,000)

E.g. (Salary 1,000,000 LL.)

Employee's monthly share : 3% × 3 × 300,000 = 27,000 LL.

Company's monthly share : 12% × 3 × 300,000 = 108,000 LL.

135,000 LL. 

 

2. Family Allowance 

The contribution is 15% of monthly salary to be incurred by the firm and is directly related to the monthly salary subject to a ceiling when the monthly salary exceeds 3 times the minimum wage. The following computation reveals the treatment : 

1- Salary doesn't exceed 3 x Minimum Wage(3 x 300,000 = 900,000)

E.g. (Salary 400,000 LL.)

Company's monthly share : 15% × 400,000 = 60,000 LL. 

2- Salary exceeds 3 x Minimum Wage(3 x 250,000 = 900,000)

E.g. (Salary 1,000,000 LL.)

Company's monthly share : 15% × 3 × 300,000 = 135,000 LL. 

In addition the firm will pay a family allowance to married employees on a monthly basis. These payments will be refunded by the Social Security to the firm by deducting them from the total subscriptions of the firm.

Family allowance is paid on a monthly basis together with the employees' salaries, and is computed as follows :

· 20% of minimum official wage for wife (300,000 L.L.).

(300,000 x 20% = 60,000)

· 11% of minimum official wage for each child up to the maximum of five children.(300,000 x 11% = 33,000 per child) 

 

 3. End-Of-Service-Indemnity (EOSI) 

The subscription is 8.5% of total monthly salary payable to Social Security on Lebanese employees. In addition, a provision is kept in the books to provide for the difference of the subscriptions paid to the social security from the total amount due for payment.

The provision = (latest monthly salary X years of services) - total subscriptions paid to the social security. 
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If the employee is of a foreign nationality, then the company does not pay the monthly EOSI subscription to the social security, instead the employee's EOSI is paid in full to him when he leaves the company at the following rate : # of years in service multiplied by his latest salary ( it is provided for in the Company's books ).