Approved legislation agreed as part of the package deal: minimum wage will rise to NIS 5,400

The Ministerial Committee for Legislation approved in a telephone poll between the ministers the amendments to the legislation agreed as part of the package deal in the economy. Among other things, under the program, the minimum wage will gradually increase to NIS 6,000 by the end of 2025 in five installments.
On April 1 this year, the minimum wage in Israel will rise to NIS 5,400. The increase is less than 2%, while in 2021 inflation was measured at 2.8% in Israel and since the beginning of the year there have been further increases, such as property taxes, fuel and electricity. The next pulse in just NIS 100, which will again be at a rate of less than 2%, will be made in April 2023. In April 2024, the minimum wage will increase to NIS 5,700. In April 2025 for NIS 5,800 and in December 2025 for NIS 6,000.
It was Economy and Industry Minister Orna Barbibai who brought the package deal for approval tonight. It should be noted that the issue was not planned at all to come up today in the Ministerial Committee and was added at the last minute so that the workplaces will have enough time to get organized to change the minimum wage starting in April and implement the other clauses of the agreement. The law still needs to be approved in the Knesset.
Last November, Finance Minister Avigdor Lieberman, Economy Minister Orna Barbibai, Histadrut Chairman Arnon Bar-David, Business Sector President Dovi Amitai and Manufacturers Association President and Israel Employers and Business Presidents Dr. Ron Tomer agreed on the package deal In the overall economy, in addition to raising the minimum wage, it also provides flexibility in employing workers and tools for stimulating the economy, as well as creating certainty in public-sector employment relations, including postponing the framework agreement in the public sector for 2023 and providing a budget for problem solving.
Amendment of the Minimum Wage Law: Raising the minimum wage in the economy, taking into account the state of the labor market and budgetary constraints. The minimum wage will be raised gradually, "with an emphasis on reducing gaps and strengthening the status of low-wage workers, up to NIS 6,000."
However, the law on raising the minimum wage may be amended in the Knesset. The committee set up to discuss the law is the Labor and Welfare Committee, headed by MK Efrat Reitan-Marom of the Labor Party, which itself expressed reservations about some of the package deal clauses, led by an increase of only NIS 100 in the minimum wage in two months. In a move that will play down the wages of the lowest wage earners in the economy and the distortions in the law must be corrected.
Amendment of the Annual Leave Law - additional day of leave for an employee employed for up to 5 years in the workplace (13 instead of the minimum 12 days today).
• Amendment of the Working Hours and Rest Act - a section that is actually to the detriment of employees. The amendment has a calculation of overtime aimed at flexible employment of employees for the employer and better work-house balance for the employee. This means that an employee who has missed work hours during the month will not receive overtime until the number of hours he has deducted (which are not a full working day) accumulates. It should be noted that this method is accepted in most OECD countries. The explanation in the package deal agreement: "The parties agreed on the calculation of overtime, which reflects the flexibility required for balancing work and leisure and providing a solution to the challenging period we are facing."
The Histadrut addressed the cabinet ministers ahead of the discussion demanding that the package deal be increased with an increase in the minimum wage to NIS 7,000. "Such a decision takes more than a million employees away from dreaming of an apartment, and will lead, within five years, to a situation where employees will have to choose between electricity, fuel, and food."
The Standing Together movement, which is leading the "minimum 40" campaign to raise the minimum wage, said in response to the approved outline: "Instead of listening to public criticism of the government's economic plan, which also emerges from the coalition, "For the price increases? Will it save workers from poverty? No. It is a mockery of Rash and a cynical and insulting move by the government."