After 37 years, new package to improve Israeli working conditions

The new package of agreements reached on Wednesday between the Ministry of Finance, the Bank of Israel, Histadrut and other organizations will increase the minimum wage to 6,000 NIS per month for five years, and will increase the minimum number of vacation days to 13 from 12 to starting next year.

The agreement, the first of its kind in Israel in 37 years, will help reduce social gaps and strengthen the situation of low-wage workers, promote management flexibility in the public and private sectors, and provide certainty in labor relations in the economy. Said the Ministry.

“For the first time in 37 years, we are signing a package of agreements, which is great news for the Israeli economy and economy,” said Finance Minister Avigdor Liberman. “The package was essential for the recovery of the economy and the contribution to the economy is significant.”

Under the agreement, the minimum wage will rise from NIS 5,300 per month today to NIS 6,000 by 2026, increasing by NIS 700 over the course of five years. The first increase of 100 NIS is expected next April.

Employees would be entitled to a minimum of 13 vacation days per year, instead of the current minimum of 12. In return, the number of weekly working hours will not be reduced.

INTERIOR MINISTER Ayelet Shaked, Finance Minister Avigdor Liberman and Minister of Construction and Housing, Ministerial Liaison with the Knesset, Minister of Jerusalem Affairs and Heritage Ze’ev Elkin in a meeting to discuss the Economic Arrangements Act, 31 October 2021 (Credit: MARC ISRAEL SELLEM / THE JERUSALEM POST)

Additionally, all public sector workers will be able to work from home one day a week, as long as their work requirements allow.

In addition, the parties agreed to change the overtime calculations from a daily to a monthly basis, as is customary in most OECD countries. The change will allow employees and employers to manage working hours more efficiently and tailor them to the needs of the employee and employer, giving employees the ability to balance working hours with time off, the Finance Ministry said. .

“This is certainly important news for the economy at the moment, for a number of reasons,” said Bank of Israel Governor Professor Amir Yaron. “The main reason, in my opinion, is the certainty that the ‘Package Deal’ generates for economic activity, in addition to being graduated and proportional. This is particularly the case at this time, when the economy is recovering, and fortunately exit of such a serious economic crisis. This occurs at the same time as the expected completion of the approval of the State Budget and the important structural reforms that accompany it for the sustainable growth of Israel. “

“The package is an important line in labor relations in Israel, which will help rehabilitate the economy and help improve the situation of workers,” added Histadrut president Arnon Bar-David. “A gradual increase in the minimum wage to NIS 6,000 will directly affect hundreds of thousands of families with low wage levels and will raise the entire wage level.”

“Without salary cuts, without damaging the pension system, with an innovative model of remote work and the regulation of a budget dedicated to promoting the weakened sectors, we will ensure the recovery of the economy and we will ensure that all workers enjoy the fruits of the growth, “he said. additional.

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