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The minimum wage will increase to NIS 6,000 a month

The Minister of Finance, the Governor of the Bank of Israel, the Chairman of the Histadrut, the Chairman of the President of the Business Sector, the Chairman of the President of Employers and Businesses in Israel and the President of the Manufacturers Association agreed on a "package deal" in the economy. The coming year

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• Avigdor Lieberman

• minimum wage

• Bank of Israel Governor

• Chairman of the Histadrut

• Arnon Bar David

Sonia Gorodisky

Wednesday, 03 November 2021, 13:17 Updated: 13:31

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The Minister of Finance, the Chairman of the Histadrut, the heads of the employers' organizations and the Governor of the Bank of Israel presented the package deal, which the Israeli economy has not known since 1984.

According to the announcement, the package deal brings workers: the minimum wage will gradually rise to NIS 6,000 Gaps and strengthening the status of employees earning at the lower levels, the parties also stated the promotion of managerial flexibility in the private and public sector and the provision of certainty in labor relations in the economy - postponing the framework agreement in the public sector for 2023.

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To the full article

The press conference

Minimum wage:

The two sides agreed to raise the minimum wage for workers who earn the minimum wage, taking into account market conditions and constraints budgets so the minimum wage will rise in a gradual manner:

the minimum wage which currently stands at 5,200 shekels a month, will rise according to the steps below:

April 2022- 5,400 shekels

April 2023- 5,500 shekels

April 2024 - NIS 5,700

April 2025 - NIS 5,800

December 2025 - NIS 6,000

The Minister of Finance announces the package deal in the economy (Photo: Walla !, Sonia Gorodisky)

The deal will include promoting legislative amendments aimed at creating flexibility in the labor market and creating a work-life balance. The parties agreed on the transition to overtime calculation from a daily basis calculation to a monthly calculation, as is customary in most OECD countries. The change will allow employees and employers to manage work hours more efficiently and tailored to the needs of the employee and employer and will allow employees the ability to balance work hours with leisure time.

Legislative arrangements today are based on legislation from the 1950s and the summary will update the legislative arrangements to the challenges of the modern labor market.

An amendment to the annual leave law will also be amended, with low-level workers receiving an additional day off, a total of 13 days instead of the current 12

.

The package deal includes components that improve employment flexibility in the public sector and contribute to raising productivity: the parties agreed to continue working in the public sector according to agreements signed during the Corona period and allowed employment flexibility and tools for managements to deal with the consequences of the Corona crisis. This is an innovative agreement signed between the Histadrut and the wage commissioner at the beginning of the Corona crisis and created new management tools while providing a balance between the needs of employees and employers.

Another summary is the regulation of the issue of work remotely by public sector employees - this is an innovative agreement that regulates the relationship between the employee and the employer working from home while preserving the rights and well-being of the employees. The agreement is designed to improve the balance between home and leisure and productivity.

To enable the economy to recover from the consequences of the corona crisis and allow the government space to work, the parties have agreed to create industrial peace in 2022, with issues that arise between the parties resolved in a dedicated problem-solving framework.

The parties consider it important to promote the public sector and the labor relations system in favor of creating a professional and quality discourse that will lead to the adaptation of the public service to the challenges of the modern world of work and the challenges posed by the corona crisis.

Chairman of the Presidency of Employers and Businesses in Israel and President of the Manufacturers Association, Ron Tomer (Photo: Mark Israel Salem)

"who dares, wins"

Chairman of the Presidents of Employers and Businesses in Israel and President of the Manufacturers Association, Ron Tomer

: "Last year our reality changed in such a way that we still do not fully understand. We only understand that countries that respond more quickly to the changing reality will be in a better, safer place.

Dare to win and today we dare. The agreement we are signing today is the first significant response to the changing reality. And no less important - is a response that was agreed upon jointly, at a round table, under the significant leadership and high involvement of the Minister of Finance. The Histadrut has agreed, with great courage, to change the rules of the game and make important adjustments in the world of labor relations, as we have been proposing for many years.

The changes are good for employers as well as employees and especially ensure a better ability to respond to future changes.

"I can not say that we have solved everything and that it is the perfect model, but I can certainly state today on behalf of the employers that we started an important change that will strengthen the competitiveness of the Israeli economy and send an important message to the world about the Israeli economy's ability to adopt innovation in the labor market."

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