Chairman of the Labor Committee MK Efrat Reitan in recent attempts to save the "package deal" and raise the minimum wage in the economy:
Tomorrow (Monday) the committee headed by her will discuss Reitan's proposal to raise the minimum wage by NIS 200 by the end of the year.
This is in contrast to what was presented in the initial version of the package deal in November, according to which the minimum wage was to increase by only NIS 100 in the first installment.
According to Reitan's proposal, which recently held discussions with both the Ministry of Finance and the employers' organizations in the economy, the minimum wage will increase by NIS 200 from the current NIS 5,300 to NIS 5,500 today, while NIS 50 until the end of the first quarter of 2023, and so on until The minimum wage will reach a level of NIS 6,000 at the end of the first quarter of 2025, or 47.5% of the average wage in the economy - whichever is higher.
Early all beats in the year
It will be recalled that the original package deal was formulated in November between representatives of the Histadrut, employers and the Ministry of Finance.
The original deal stated that the minimum wage would increase for the first time in April 2022 to NIS 5,400 a month and then in April 2023 to NIS 5,500 a month - then continue to rise gradually to NIS 6,000 in 2026.
Wrighten's proposal actually precedes all pulses by almost a year, due to the rise in the level of inflation in the economy.
If the committee approves Chairman Reitan's proposal, the proposal will be approved by the Knesset on second and third reading, and if the Knesset approves it, there is a chance that the minimum wage will increase in the near future as planned by Reitan. In April 2023 in accordance with the automatic linkage mechanism frozen this year.
Without the package deal, the automatic linkage mechanism of the minimum wage will be activated as stated only in April 2023, so the minimum wage will be linked to 47.5% of the average wage in the economy of the current year.
Since the average wage in the economy has already risen and is expected to continue to rise in the coming months, the minimum wage will rise accordingly.
According to forecasts presented to "Israel Today" in April 2023, the minimum wage is expected to rise from NIS 5,300 today to NIS 5,552.
Recall that Finance Minister Avigdor Lieberman first admitted three weeks ago that the "package deal" would not proceed as worded in November, and the minimum wage clause would be improved.
This is an achievement of the Labor Party, which demanded a more significant increase in the minimum wage following the wave of rising prices in the economy.
Later, a bill to raise the opposition's minimum wage to NIS 40 per hour passed a preliminary reading after Meretz and Labor found it difficult to oppose the law, and even MK Naama Lazimi (Labor) attached a similar law to the opposition law.
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