Good news for minimum wage earners in Israel!
After several months of negotiations, the minimum wage in Israel is to be raised again.
The National Workers' Union and the Employers' Committee, with the authorization of the Israeli Treasury, have reached an agreement whereby employees paid the minimum wage will see their salaries increased by 272 shekels per month. The increase will take effect from April 2023.
Those affected by this increase will therefore receive an increase of 5% on their monthly salary. From the month ofApril 2023.READ ALSO: SALARY IN ISRAEL: ONLINE SIMULATION.
Israel's minimum wage approaches €1,400/month
The minimum wage will now be 5,572 shekels gross per month instead of the current 5,300 shekels gross per month, with hourly pay rising from 29.12 shekels to 30.61 shekels.
The minimum wage in Israel continues to rise.
Since 2015, the minimum wage in Israel has risen from 23.12 shekels per hour to 30.61 shekels by the end of 2023.
This represents an increase of over 32% in 8 years.
At the end of 2014, hiring a full-time employee (182 hours/month) at minimum wage cost the employer 4,983 shekels/month (including employer's contributions).
From April 2023, by way of comparison, a full-time employee at the minimum wage will cost 6,463 shekels/month (including employer contributions).
This significant increase is much higher than inflation over the same period (less than 7%).
A process launched in 2015
This is the umpteenth step in the social process begun in April 2015, which aimed to gradually increase the minimum wage in order to combat poverty in Israel.
According to the Bitouah Leoumi, approximately 24% of salaried workers in Israel receive the minimum wage. This estimate concerns 36% of the self-employed in Israel. (Ossek Patour / Ossek Mourché).
Employers in Israel: rethink your profitability
If you are an employer in Israel, and you pay your employees the minimum wage, it is important that you are aware of this decision by the knesset, which will have an impact on your company's payroll.
So think about (re)adjusting your business plan to ensure optimum visibility of your company's health in Israel.
Do you have a question?
In a nutshell:
Visit minimum wage in Israel increases to 30.61 Nis per hour.
The minimum monthly wage in Israel for full-time work (182 hours per month) is therefore 5,572 Shekels gross.
This increase is an attempt to combat current inflation for employees in Israel.
Your questions - our advice
- Which companies will have to adjust their rates as a result of this increase?
- What are the employer contributions for the minimum wage in Israel?
- Is there overtime in Israel?