Khazen

Lebanon wants to cap or cut salaries of top earners including MPs

Employees of the Lebanese central bank gather during a strike over state budget proposals that would cut their benefits, in front of the central bank in Beirut, Lebanon May 6, 2019. Reuters

by thenational.ae –Sunniva Rose –Lebanon’s Cabinet plans to cap salaries for top-earning government employees and may halve the pay of MPs and ministers, after reports of public-sector pay cuts in the 2019 draft budget triggered nationwide protests. The maximum salary in the public sector will be limited to 20 times the national minimum wage, or 13.5 million Lebanese pounds (Dh32,890) a month in the draft budget, which is being discussed by the Cabinet, Information Minister Jamil Jarrah said on Wednesday. Budget discussions are scheduled to end on Friday, after which it will be sent to Parliament for approval. Mr Jarrah has not confirmed reports that the Cabinet was considering cutting the salaries of MPs, ministers and the president by 50 per cent, saying only that “there is an atmosphere tending towards salary cuts because one must start with oneself”.

Lebanese MPs are among the highest paid in the world compared to the national minimum wage, said a report published in 2017 by Lebanese non-profit Legal Agenda. An MP earns 18 times the minimum salary of $450 (Dh1,652) a month. Members in Tunisia, Iraq and Jordan earn 15 times the minimum wage, but only six times as much in Britain. The sum varies depending on the number of terms served. Controversially, MPs continue receiving a salary for life and their family also receive monthly compensation when they die.

The country’s leader also has a salary for life, but that is not considered as problematic because most presidents around the world do. The draft budget states that the president’s salary is equal to 12.5m pounds, but local newspapers report that that it reaches 18.7m pounds. Analysts say that this is because President Michel Aoun accumulates compensation for earlier serving as an MP, Prime minister and army commander. The Speaker of Parliament and Prime Minister each earn 17.7m pounds a month, while ministers’ salaries go as high as 12.9m pounds.

In total, the state spends 58bn pounds a year on MPs, ministers and the president, Al Akhbar daily reported, quoting Beirut consultancy Information International. The idea of reducing politicians’ pay has been floated for a long time but has never been introduced. In 2012, one Lebanese party, the Kataeb, also known as the Phalange, suggested cutting by up to 50 per cent the salaries of MPs who did not attend parliamentary sessions, to discourage absenteeism. But lowering salaries would not lead to a significant reduction in the budget deficit, which reached 11.2 per cent of GDP in 2018. Its only aim is to “throw ashes over the eyes of the people and justify any actions that may affect the poor and the middle class”, Al Akhbar said.

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