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At its legislative sessions on January 18 and 19, 2017, the Lebanese Parliament approved the law proposed by MP Antoine Zahra to amend the existing Law No. 25/74 in order to increase the allowances and compensations of the families of deceased former presidents and MPs.

Law No. 25/74
Law No. 25/74 stipulates the following:

Article 1: 
1    Whoever is elected as president receives at the end of his/her term 75 % of the allowances and compensations allocated to the president.
2    Whoever is elected as speaker of Parliament receives at the end of his/her term 75% of the allowances and compensations allocated to the speaker of Parliament.  
3    Whoever is appointed as prime minister receives at the end of his/her term 75% of the allowances and compensations allocated to the prime minister. 
4    Whoever is a former MP receives the following proportions of the allowances and compensations earned by the MP in power: 
-    For one full round of parliamentary elections: 55%
-    For two rounds of parliamentary elections: 65%
-    For three or more rounds of parliamentary elections: 75%

Article 3: 
In case of death of the beneficiaries under this law, their families have the right to receive 75% of the allowances and compensations due to them.   

The New Law and its Costs 
Law No. 25/74 was amended by the Lebanese Parliament and a new law was passed, No. 7, dated February 10, 2017, amending the first paragraph of Article 3 of the previous one. The text of article became: “In case of death of the beneficiaries of this law, their families have the right to earn all the allowances and compensations due to them under this law.” (Rather than the 75% stipulated under the previous law).

A new paragraph was added based on Law No. 25/74 to calculate the compensations. 
As for the figures and financial costs, this amended law means that there will be a yearly additional cost of about LBP 2.54 billion (USD 1.7 billion) for the compensations and allowances of the families of the deceased former presidents and MPs, to be added to the cost of the former presidents and MPs amounting to LBP 30 billion (USD 20 billion).

The table below shows the additional cost imposed by the new law: 

Position  Current
Allowances and Compensations (LBP)
Previous
Allowances and Compensations (LBP)
Allowances and Compensations of families before passing the new law (LBP) Allowances and Compensations of families after passing the new law (LBP) The increase in allowances and compensations (LBP) Rate of increase (%) Number of  beneficiary families Total of additional cost (LBP)
President of
the Republic 
12,500,000 9,375,000 7,031,250 9,375,000 2,343,750 33.4 4 9,375,000
Speaker of
Parliament 
11,825,000 8,868,750 6,651,561 8,868,750 2,217,189 33.4 3 6,651,567
Prime Minister  11,825,000 8,868,750 6,651,561 8,868,750 2,217,189 33.4 5 11,085,945
One-time MP  11,000,000 6,050,000 4,537,500 6,050,000 1,512,500 33.4 40 60,500,000
Two-times MP 11,000,000 7,150,000 5,362,500 7,150,000 1,787,500 33.4 12 21,450,000
Three-times MP  11,000,000 8,250,000 6,187,500 8,250,000 3,062,500 33.4 50 103,125,000
Total  - - - - - - 114 213,187,512 per month and  2,546,250,144 per year

  Source:  Law No.717

In view of the Lebanon's severe economic crisis, the Parliament that was supposed to consider increasing the salary of civil servants and teachers and to accept the wage hike is considering increase taxes and has already increased allowances for MPs.



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