Are you employed in Israel? Here's what's changing on July 1

salary in Israel Cabinet Expert Comptable Dray & Dray

Salary in Israel

The Israeli government has adopted 3 changes concerning salaries in Israel:

Minimum wage

The minimum wage will now be Sh4,825 gross per month, i.e. an hourly rate of Sh25.94 per hour (previously it was Sh25 per hour).
This represents an increase of 3.76%, which will help Israeli households meet the cost of living.

Pension contributions

From July 1, the employer will have to contribute 6.25% for retirement, and the employee 5.75%. (To date, the amount was 6% for the employer and 5.5% for the employee).
This increase of 0.25% for each party involved aims to increase personal contributions to pension funds, and encourages Israelis to take their future into their own hands.
It is important to point out that the amount of contributions for redundancies (פיצויים) remains unchanged.
It will therefore always be 6% monthly, payable by the employer.

Number of paid vacations

Following the reform passed by the Knesset on 07/02/2016, as of July 1, you will receive an additional day of paid vacation per year, if you have been with the company for less than 4 years.
From January 1, 2017, you will receive an extra day's vacation, bringing your total annual paid leave to 12 days / year, as opposed to the current 10 days.
As these changes take effect from July 1, June's salary remains the same, and you will notice the difference when you receive your July salary.



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