NSSF Lebanon: How Employer and Employee Contributions Work

Short answer: NSSF Lebanon is the National Social Security Fund, which every private employer must register its employees with. Employers pay 8% for sickness and maternity, 6% for family allowances and an end-of-service contribution with no ceiling, while employees pay 3% for the medical scheme. The first two branches are capped by monthly salary ceilings that change by decree, so always check the latest figure before you run payroll.

Last updated: October 2026

What is the NSSF in Lebanon and what does it cover?

The National Social Security Fund runs Lebanon’s private sector social insurance under the Social Security Law, put into force by Decree 13955 of 26 September 1963. For payroll, three branches matter every month:

• Sickness and maternity: medical cover for the employee and dependants, funded by the employer and the employee.
• Family and education allowances: monthly cash allowances for a spouse and children, funded by the employer and paid out by the fund.
• End-of-service indemnity: the lump sum paid when an employee leaves or retires, funded by the employer only.

The 1963 law is still the reference text: the 2026 family allowance decree amends Article 68 of that law ([Source: Forvis Mazars Lebanon, Tax Alert 23-2026 with Decree 2923]). What changes each year are the ceilings and allowances, set by decree and NSSF memorandum.

Who must register with NSSF Lebanon?

Every employer with salaried staff in Lebanon must register with the fund and declare its employees. The Investment Development Authority of Lebanon (IDAL) puts it simply: employees should be registered in the NSSF for contribution declarations ([Source: IDAL, Taxes and deadlines FAQ]).

The same staff are declared to the Ministry of Finance for payroll tax, and the two records are now compared. Some groups, such as foreign employees and retirees, have their own conditions: in August 2026, Law No. 67 changed the rules for retirees who keep sickness and maternity cover ([Source: Ramco, Payroll compliance Lebanon]). Confirm their status with the fund directly.

What are the current NSSF contribution rates?

The employer pays 8% for sickness and maternity and 6% for family allowances, and the employee pays 3% for the medical scheme. Sources disagree on the end-of-service rate.

PwC’s Lebanon summary, last reviewed in July 2026, lists 8% and 6% for the employer and 3% for the employee ([Source: PwC Worldwide Tax Summaries, Lebanon, Other taxes]). It gives end-of-service as 5% of total annual earnings with no ceiling, while L’Orient Today’s April 2024 breakdown uses 8.5% of salary, also uncapped ([Source: L’Orient Today, April 2024]). Confirm the end-of-service rate with the NSSF before you budget for it.

What are the NSSF salary ceilings in 2026?

As of October 2026, the sickness and maternity ceiling is LL 120 million a month according to PwC, and the family allowance ceiling is LL 28 million a month under Decree 2923. Both branches are charged only on salary up to the ceiling.

PwC records the sickness and maternity ceiling at LL 18 million a month from September 2023, LL 45 million from March 2024, LL 90 million from April 2024 and LL 120 million from August 2025 ([Source: PwC Worldwide Tax Summaries, Lebanon]). Ramco links the latest increase to Decree 887 of 21 August 2025, but also reports an NSSF memorandum (No. 801) that cites LL 140 million ([Source: Ramco, Payroll compliance Lebanon]). Ask the fund which figure applies to you.

The family allowance ceiling rose from LL 12 million (January 2024) to LL 18 million (July 2025) ([Source: PwC Worldwide Tax Summaries, Lebanon]), then to LL 28 million under Decree 2923 of 24 April 2026 ([Source: Forvis Mazars Lebanon, Tax Alert 23-2026]). It applies from the first month after publication in the Official Gazette, which Ramco reports as 1 May 2026. PwC’s July 2026 summary still shows LL 18 million, so it may not yet reflect the decree.

An illustration using those figures: for an employee earning LL 150 million a month, the employer pays 8% of LL 120 million (LL 9.6 million) for sickness and maternity and 6% of LL 28 million (LL 1.68 million) for family allowances. The employee pays 3% of LL 120 million (LL 3.6 million). End-of-service is charged on the full salary.

How much are NSSF family allowances now?

Under Decree 2923, the monthly family allowance is LL 2,100,000 for a spouse and LL 1,155,000 per child for up to five children, with a total cap of LL 7,875,000 a month ([Source: Decree 2923, via Forvis Mazars Lebanon]).

PwC records LL 600,000 for a spouse and LL 330,000 per child from December 2023, then LL 1,200,000 and LL 660,000 from July 2025 under NSSF Memorandum No. 793 ([Source: PwC Worldwide Tax Summaries, Lebanon]). When a decree changes, check that your payroll software has picked up both the new base and the new allowance table.

How are NSSF declarations filed and paid?

Employers file a declaration of salaries and contributions monthly if they have more than ten employees, or quarterly if they have fewer than ten. The declaration is due a month (or a quarter) after the period ends ([Source: IDAL, Taxes and deadlines FAQ]).

Late payment carries a penalty of 0.5 per thousand of net contributions per day, according to the same IDAL page. Two newer rules also affect the figures:

• Foreign currency salaries: NSSF Memorandum No. 740 (1 February 2024) requires conversion at the highest official Central Bank of Lebanon rate, which PwC gives as LL 89,500 per US dollar ([Source: PwC Worldwide Tax Summaries, Lebanon]).
• Cross-checking with payroll tax: under Article 92 of the 2024 Budget Law, payroll tax declarations are shared with the NSSF, and a difference found carries a penalty of ten times the discrepancy, per PwC.

NSSF and Ministry of Finance filings must now tell the same story. The course on filing taxes on the MoF portal step by step covers the tax side of that reconciliation.

Why do NSSF Lebanon rules keep catching payroll teams out?

Because ceilings, allowances and the exchange rate have changed several times since 2023, often at short notice.

The 2024 sickness ceilings were set at five times the minimum wage, and PwC reports that the minimum wage for employees under the Labor Law rose to LL 28 million from 1 August 2025 under Decree No. 699 ([Source: PwC Worldwide Tax Summaries, Lebanon]).

When the 2024 changes landed, expert accountant Nadim Daher, a board member of the Lebanese Association for Taxpayers’ Rights (ALDIC), told L’Orient-Le Jour:

“It’s chaos; nobody knows what to do.”

He was describing confusion over which exchange rate and ceilings applied to income tax and NSSF contributions ([Source: L’Orient Today, 30 April 2024]). The fix is a routine: check for new decrees and NSSF memoranda before each payroll close, and log which ceiling you applied.

How Balance Brightness can help

We built our Payroll, Tax and Social Security Mastery course for accountants and HR teams who run Lebanese payroll and want to calculate NSSF contributions, payroll tax and end-of-service provisions with confidence. It is led by Mahmoud Chehade, with 30 years in practice and more than 500 professionals trained.

If your work also covers income tax and VAT returns, Master Lebanese Tax Filing: Income Tax and VAT pairs well with it, and Lebanese Accounting Law in Practice covers the legal framework. Exam candidates can go deeper with Law and Taxation for the LACPA exam, and finance leads can look at the Financial Controller Track.

For whole finance or HR departments, our corporate finance training runs live sessions in person in Hamra, Beirut, or online. See how we work with companies on the for organizations page, or book one-on-one finance coaching if you need help with a specific payroll problem.

Frequently asked questions

Do employees pay NSSF contributions in Lebanon?

Yes, but only to one branch. Employees contribute 3% of their salary to the sickness and maternity (medical) scheme, up to the monthly ceiling, which PwC lists as LL 120 million as of its July 2026 review. The employer withholds this amount from salary and pays it to the fund along with its own contributions. Employees do not contribute to the family allowance branch or the end-of-service branch: those are paid entirely by the employer. For salaries above the ceiling, the deduction should stop growing at the ceiling; if it does not, your payroll system may be using an old figure.

Is there a ceiling on end-of-service contributions?

No. Both PwC and L’Orient Today describe the end-of-service branch as having no ceiling, so the employer’s contribution is charged on the full salary, unlike sickness and maternity or family allowances. What the sources do not agree on is the rate: PwC’s current summary shows 5% of total annual earnings, while L’Orient Today’s 2024 analysis uses 8.5% of salary. That difference has a large effect on budgets for higher earners, so it is worth confirming with the NSSF in writing before you set your provision.

How often do employers file NSSF declarations?

It depends on headcount. According to IDAL, companies with more than ten employees file monthly, and companies with fewer than ten file quarterly. The declaration deadline is a month after the period for monthly filers and a quarter after the period for quarterly filers. Late contributions attract a daily penalty of 0.5 per thousand of the net contributions due. A company close to the ten-employee line should confirm which regime applies. Since payroll tax returns are now reconciled with NSSF declarations, prepare both from the same payroll run.

Which exchange rate applies to salaries paid in dollars?

NSSF Memorandum No. 740, dated 1 February 2024, requires salaries paid in foreign currency to be converted at the highest official exchange rate published by the Central Bank of Lebanon. PwC gives that rate as LL 89,500 to the US dollar. Contributions are then worked out on the converted Lebanese pound amount, subject to the branch ceilings. A salary of USD 1,000, for example, converts to LL 89.5 million, which is below the sickness and maternity ceiling but above the family allowance ceiling.

The bottom line

NSSF Lebanon contributions follow a simple structure: three branches, fixed percentages and ceilings set by decree. The hard part is keeping up, so build a monthly check for new decrees into your payroll close. If you want to master the full cycle, from NSSF to payroll tax, explore our payroll and social security course or contact us to talk it through.

This article is general information based on sources available in October 2026. It is not tax, legal or financial advice. NSSF rates, ceilings and allowances change by decree and memorandum, so confirm current rules with the National Social Security Fund, the Ministry of Finance or a licensed adviser before acting.

Sources

1. IDAL (Investment Development Authority of Lebanon): Taxes and deadlines FAQ
2. Forvis Mazars Lebanon: Tax Alert 23-2026, Amendments to the NSSF family and education branch (with Decree 2923)
3. PwC Worldwide Tax Summaries: Lebanon, Corporate, Other taxes
4. Ramco: Payroll compliance Lebanon
5. L’Orient Today: Taxes and contributions, what has changed for employees and employers in Lebanon?