Mr. Nicolas Boukather, President of RDCL, discussed Lebanon’s wage adjustment challenges in an interview with Leb Economy:

– Despite Lebanon’s historic collapse, Boukather stressed that the private sector remains the cornerstone of stability and growth, against all odds.

– He emphasized that the dramatic fall in GDP per capita — down to 50% of pre-crisis levels — must be carefully considered when adjusting the minimum wage, balancing social justice with economic productivity.

– Boukather warned against imposing across-the-board salary increases, as such measures would exacerbate unemployment, drive more companies into the informal economy, and undermine the state’s ability to collect taxes.

– He highlighted that successful economies adjusts only the minimum wages according to economic capacity without imposing blanket raises.

– Drawing comparisons, Boukather cited the disastrous examples of countries that followed different routes.

– Additionally, he raised alarm over the End-of-Service indemnity crisis, where the purchasing power of indemnities collapsed, calling for urgent action.

– Saving the real economy means rescuing formal business and employment. Economic recovery hinges on realism, not populism: saving legal companies, protecting formal jobs, and fighting the informal economy must be at the core of our nation’s top priorities.

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