...

Minimum wage increase in Israel

Minimum wage in Israel

Good news! Minimum wage increase in Israel

The Israeli labor market is in turmoil! After months of negotiations between the National Workers' Union, the Employers' Committee and the Israeli Treasury, excellent news has emerged for minimum wage earners in Israel. An agreement has been reached to increase their pay, with a positive impact on their purchasing power.
  

 

Un salaire minimum en Israel à 5 880 shekels dès avril 2024

From April 2024, employees paid the minimum wage in Israel will benefit from a significant increase. The gross monthly wage will rise to 5,880 shekels, an increase of 308 shekels on the current amount. This is equivalent to an increase of 5% on their monthly salary, thus improving their living conditions. The hourly wage will also rise, from 30.61 shekels to 32.30 shekels.

Une progression constante du salaire minimum en Israel

This increase is part of an ongoing process of improving the minimum wage in Israel. Since 2015, the minimum hourly wage has risen from 23.12 shekels to 32.30 shekels in 2024, representing an impressive increase of over 40% in just 9 years. This development testifies to the commitment of the government and social partners to fight poverty and ensure a decent standard of living for Israeli workers.

ALSO READ: What are the employer contributions in Israel?

Impact sur les employeurs et adaptation nécessaire

The increase in Israel's minimum wage will have a direct impact on employers, particularly on their payroll. For example, in 2014, employing a full-time employee (182 hours per month) at the minimum wage cost 4,983 shekels per month, including employer contributions. In April 2024, this cost will rise to 6,820 shekels per month. This significant increase, while beneficial for employees, requires companies to adapt. It is essential for employers to re-evaluate their business plans and adjust their strategies to maintain profitability while complying with the new salary regulations in Israel.

Des ressources pour accompagner les entreprises

Faced with these changes to the minimum wage in Israel, it's crucial that companies have the resources they need to adapt. Tools such as take-home pay calculators, employer contribution simulators and guides to labor legislation in Israel can help them grasp the changes and take appropriate action.

In short, the increase in Israel's minimum wage is a positive step forward for workers and the country's economy.

However, it implies a necessary adaptation on the part of employers.

By staying informed and using the resources available, companies can ensure they remain competitive and contribute to a fair and prosperous labor market in Israel.

OUR OFFICES

Jerusalem

Kanfei Nesharim 68. Merkaz Oranim.

Tel Aviv

31 boulevard Rothschild

CONTACT US

Phone : 02 631 9000
Fax: 02 631 9005
Email : office@cpa-dray.com

Boruch Levenson - CPA

A native English speaker qualified in both Israel and the UK, Boruch cares for the English speaking clients.

If you've got questions, don't hesitate to reach out.

Do you have any further questions? Our team is ready to help

OUR LATEST ANALYSES

Read our latest articles & tips.

In partnership with :

Contact

Our offices in Israel

Our firm specializes in Israeli accounting and taxation, with in-depth expertise in Olim Hadashim benefits and tax optimization.

Our consultants in Tel Aviv

English speaking accountants in Israel
Address: 31 boulevard Rothschild, Tel-Aviv (Israel)
Phone number: 03-9446635
Fax: 03-9494682
Email: office@cpa-dray.com

Our consultants in Jerusalem

English speaking accountants in Israel
Address: Kanfei Nesharim 68. Merkaz Oranim
Phone number: 02 631 9000
Fax: 02 631 9005
Email: office@cpa-dray.com