The minimum monthly salary in Israel will rise 5% on April 1 to NIS 5,571. The minimum salary is automatically revised through a linkage mechanism, which sets that the lowest salary that an employer can pay is 47.5% of the average salary in Israel.
Despite the automatic revision, the minimum salary in Israel has not been updated since December 2017, when it was set at NIS 5,300 per month or NIS 28.5 per hour. The minimum salary was meant to be revised several years ago but was frozen because of the Covid crisis and then because of political disputes.
In 2021, an agreement was signed between the Ministry of Finance, Histadrut and major employers organizations, in which the minimum salary is due to rise to NIS 6,000 by 2025. But the agreement was not passed by the Knesset because the Labor party and Blue White party were demanding a sharper hike.
Published by Globes, Israel business news – en.globes.co.il – on March 23, 2023.
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