Israeli Average Salary Sees Mixed Trends in 2023: CBS Report

The Central Bureau of Statistics (CBS) has released its latest data highlighting the salary landscape in Israel for the year 2023, revealing a combination of growth and fluctuations across various sectors.

According to the report, the average salary for a salaried position in May this year reached NIS 12,324, reflecting a substantial increase of approximately 5.1% when compared to May 2022. However, a nuanced picture emerges when accounting for inflation, with the average salary at constant prices – adjusted for the monthly Consumer Price Index – showing a more modest increase of 0.5% over the same period, landing at NIS 10,596. This figure also signifies a decrease compared to the previous month of April.

In the high-tech industry, which remains a cornerstone of the Israeli economy, the average salary in May was notably higher, standing at NIS 28,031. This figure demonstrated a commendable 4.2% growth from May 2022. Nevertheless, the high-tech sector also saw a decrease in average salary when juxtaposed with the previous month of April.

The CBS report further estimated that by June, a pivotal month for economic recovery, the average salary for Israeli workers would surge to NIS 13,295, marking a substantial increase of 6.3% compared to June 2022.

The job market displayed resilient expansion as well. In May, the number of jobs for Israeli workers reached 4.020 million, showcasing a notable increase of 1.5% from May 2022 (3.961 million), and a 1.2% increase from April 2023 (3.973 million). The high-tech sector also contributed to this growth, with the number of salaried jobs in the industry reaching 396.6 thousand in May – a remarkable increase of 1.9% from the previous year and a modest 0.3% rise from the previous month.

Analyzing specific industries, the highest wage earners outside of the high-tech realm were identified. The information and communication industry led the pack, boasting an average monthly salary of NIS 27,637. This was followed closely by workers in financial and insurance services, earning NIS 22,594, and employees in the electricity and water industry with an average gross monthly salary of NIS 20,682. In stark contrast, hospitality and food service workers found themselves at the lower end of the spectrum, with an average monthly salary of NIS 5,833 – a mere NIS 250 more than the minimum wage in the country.

The Central Bureau of Statistics emphasized that the data, derived from monthly reports submitted by employers to the National Insurance Institute, did not encompass workers receiving unemployment benefits. Additionally, the average wage calculation for salaried positions did not consider the number of days the worker was employed in a given month.

As Israel navigates economic dynamics, these statistics shed light on the multifaceted nature of its job market, underlining both achievements and areas of concern.