Lebanon's parliament achieved a significant feat by enacting a long-overdue pension system for private sector workers after a three-decade delay. The International Labor Organization (ILO) played a crucial role in guiding the law to meet global social security standards.
Ruba Jaradat, ILO Regional Director for Arab States, highlighted the urgency of robust social protection amid Lebanon's economic crises. This move aims to bolster retirees' well-being, offering vital support during challenging times.
Mohammed Karaki, Director General of the NSSF, hailed it as a pivotal socio-economic reform for Lebanon, addressing the hardships faced by older citizens due to the financial crisis.
The pension system ensures minimum benefits based on contributions and revalued average wages, covering disabilities and survivor benefits. Moreover, annual adjustments will safeguard against inflation, ensuring a sustainable system for Lebanon's retirees.
Key Points:
1. Lebanon's parliament has passed a landmark law establishing a comprehensive pension system for private sector workers, marking a significant achievement after a three-decade delay and seen as a pivotal moment for the country.
2. The International Labor Organization (ILO) provided technical support, collaborating with Lebanese parliamentary committees and the National Social Security Fund (NSSF) to ensure the new law's alignment with global social security standards.
3. ILO Regional Director for Arab States, Ruba Jaradat, emphasized the importance of bolstering social protection mechanisms and national institutions, particularly during ongoing economic and social crises.
4. The newly established pension system is expected to enhance the well-being of retiring Lebanese citizens, fostering social solidarity, which is crucial amid the country's current challenges.
5. Mohammed Karaki, Director General of the NSSF, hailed the program as one of Lebanon's most significant socio-economic reforms in the past three decades.
6. Lebanon's older population has faced financial hardships due to the country's economic crisis, resulting in increased poverty rates and unemployment nationwide.
7. The collapse of the Lebanese pound has drastically reduced the value of end-of-service indemnities received by individuals in Lebanon.
8. The new pension benefits will be calculated based on specific guaranteed minimum amounts, considering factors such as years of contribution and average wages.
9. The system will offer benefits in cases of disability and provide for survivors in the event of the insured member's death, ensuring continued financial support.
10. Additionally, the pension values will be adjusted annually to account for inflation, ensuring that benefits remain aligned with economic fluctuations through a yearly adjustment process.
(With Agency Inputs)
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