Cost of retirees= 15% of treasury revenues
Cost of retirees= 15% of treasury revenues
It is indisputable that employees in general, namely state employees, are entitled to end-of-service indemnities and pensions. Yet, the high cost of state employees’ pensions has placed a great burden on the government, reaching LBP 2,808 billion in 2018 compared to LBP 2,250 billion in 2017 and representing 15% of the total estimated state revenues in 2018 compared to 10.8% in 2011. This cost is likely to rise due to increased employment, especially in the military and education, as well as the increase in salaries and wages. The table below shows the cost of pensions and end-of-service indemnities over the past two decades.
A table showing the cost of pensions and end-of-service indemnities (1998-2018).
|
End-of-service indemnities and pensions as a percent of total state revenues |
Total (LBP billion) |
End-of-service indemnities (LBP billion) |
Pensions (LBP billion) |
Year |
|
11.3 |
520 |
220 |
300 |
1998 |
|
10.8 |
1,400 |
200 |
1,200 |
2010 |
|
15 |
2,808 |
665 |
2,143 |
2018 |
Source: Information International based on the public budget figures (1998-2018).
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