Israeli Average Salary Rises by 5.1% in 2024 Outpacing Inflation reaching NIS 13,514

According to data released today by the Central Bureau of Statistics, the average salary for an employee position in Israel increased by 5.1% in 2024, reaching NIS 13,514 compared to NIS 12,863 in 2023. This growth significantly outpaced the consumer price index (CPI), which rose by 3.2% during the same period. However, this wage increase also has a downside for National Insurance benefits, which are linked to the CPI and are expected to be eroded by approximately 2%.

The wage increase, however, was not uniform across all sectors. The high-tech industry saw the most significant growth, with an average salary increase of 6.8%, from NIS 29,826 in 2023 to NIS 31,858 in 2024. This sector continues to drive wage gaps within the economy, with specialized fields like scientific research and programming seeing particularly high salaries—NIS 35,877 and NIS 33,395, respectively.

In contrast, sectors traditionally offering lower salaries experienced more modest wage increases. For example, salaries in education rose by just 3.5%, commerce by 4.5%, and health and welfare by 2.6%.

January Sees 6.7% Drop from December Peak

While 2024 saw an overall rise in average wages, January saw a notable drop of 6.7% compared to December 2023. The average salary in January fell to NIS 13,385, down from the all-time high of NIS 14,340 in December. The December peak was likely influenced by exceptional payments, and the January figure represents a return to the typical wage level seen in recent months.

High-Tech Sector Growth Lags

The number of salaried positions in Israel remained largely unchanged, with 4.056 million salaried jobs reported in January, a slight decrease from 4.062 million in December 2023. The high-tech sector, which continues to be a significant driver of the economy, saw a modest increase of 0.8% in the number of salaried jobs, reaching 400.6 thousand in 2024, compared to 397.3 thousand in 2023. High-tech jobs make up about 10% of all salaried positions in the country, remaining consistent with the previous year.

Outlook: Wage Gaps and Inflationary Pressures

While the rise in wages for most sectors is a positive sign, the continued growth in the high-tech industry is expected to contribute to widening income inequality. Additionally, the erosion of National Insurance benefits due to the gap between wage increases and inflation may place additional financial pressures on certain groups in the population.