450,000 LBP to Get to Work... It's Time to Change the Transport Allowance!

Increased fuel prices are no longer visible only on fuel price charts. On Lebanese roads, car traffic often appears lighter than in previous years, raising a question: Is the average Lebanese now calculating the cost of leaving home before deciding where to go?

While it’s impossible to confirm that reduced traffic congestion is solely due to rising fuel prices without official data, one thing is certain: commuting has become a heavy financial decision for Lebanese citizens. Between fuel, parking fees, and transportation costs, the daily commute is no longer a minor detail. A trip can be canceled or a visit postponed, but how can an employee skip going to work?

The current official transport allowance stands at 450,000 LBP per day of actual attendance—about 9.9 million LBP monthly for someone working 22 days. Yet with continuous fuel price hikes, the question arises: Should we keep increasing this number every time fuel prices rise, or should we fundamentally rethink how it’s calculated?

In early September, Labor Minister Muhammad Haydar announced that a specialized committee is preparing a study to establish a permanent mechanism linking the transport allowance to fuel prices, so it rises when fuel prices increase and falls when they drop. This move would shift the allowance from ad hoc decisions to a dynamic indicator that reflects real transportation costs.

But fuel prices alone aren’t the whole equation. An employee living just 5 kilometers from their workplace receives the same allowance as another who travels dozens of kilometers daily. Is this flat rate fair?

In other countries, the approach differs. In France, employers cover at least 50% of public transit costs between home and work. In Germany, distance is factored into the calculation through the tax system, with a mileage allowance of 0.38 euros per kilometer starting in 2026. Belgium also incorporates distance and transportation cost into parts of its compensation system.

Lebanon cannot directly copy these models, especially given the lack of a wide and effective public transport network that pushes many to rely on personal vehicles. However, it can adopt the underlying idea: the transport allowance shouldn’t be a fixed number disconnected from the real cost of getting to work.

The fairest formula might consider fuel prices, distance traveled, and actual attendance days, with different rules for those using public transit, while also accounting for institutions’ ability to absorb increases—especially smaller ones.

Yet behind all these calculations lies a simpler, harsher reality. Lebanese citizens now perform 'a thousand calculations' before stepping out the door: fuel, transport, generator, food, water, rent, bills—all piling up, while income struggles to keep pace. When going to work itself becomes a financial burden, the issue transcends transport allowances and touches on the very ability to sustain a normal lifestyle.

It’s clear the situation can no longer tolerate a new fixed number every few months. What’s needed is a formula that protects the employee’s right to reach their workplace without having to spend part of their salary just to earn it!

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