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Israel: Next minimum wage increase and work benefits

i24NEWS

clock 3 min read

Passengers at the Ben Gurion train station near Tel Aviv, Israel on October 28, 2021.
Yossi Aloni/Flash90Passengers at the Ben Gurion train station near Tel Aviv, Israel on October 28, 2021.

Vacation days will also be increased and the public sector workweek will include a home workday

An impending deal between Israel's finance ministry and Israel’s national trade union center is expected to raise the minimum wage to $1,910 per month.

Under the terms of the agreement, vacation days will also be increased and the public sector workweek will include a home workday, said Histadrut, the main union of Israeli workers. 

This reform, which should be finalized in the coming week, will be the first of its kind since 1984.

The minimum wage will rise from $1,690 per month to $1,910 by 2026, increasing by $220 over five years. The first hike of $30 is expected by next April.

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While this increase is good news for employees, it is still below the minimum wage of $12.75 per hour that many hoped for, corresponding to a minimum wage of around $2,320 per month.

Employees will also be entitled to a minimum of 13 or 14 days of vacation per year, instead of the current minimum of 12. 

In return, the number of weekly working hours will not be reduced.

Public sector workers will be allowed to work from home once a week, as long as their job requirements allow.

"This agreement is a real breakthrough," said a spokesperson for Histadrut.

According to The Jerusalem Post, there will be no increase or decrease of salaries in the public sector in 2022.

“We will continue to work for the benefit of a package deal that will bring real improvement... with concern only for the good of the Israeli economy,” Manufacturers’ Association president Dr. Ron Tomer said.