Minor cuts will be imposed on public sector workers pay - at least 5%

Although tax increases will not be included in the state budget that will soon be approved by the government, minor cuts will be imposed on public sector workers. This emerges from the words of Finance Minister Israel Katz, who has already spoken, in preparation for the public sector cuts program, with the chairman of the Histadrut Arnon Bar-David.
The finance minister has been briefing the economic reporters on Wednesday for the first time since he took office, saying he could understand that the plan is a massive cut in the public sector "that should be given its share in the Corona crisis." He said "public service solidarity should now be possible."
The Treasury is preparing a NIS 45 billion three-year plan in the public sector by 2023, which will include a significant pay cut to hundreds of thousands of public sector workers. At this stage, the intention is not to lay off employees, but only to prevent the recruitment of new employees in the face of retirement and retirement and to reduce some of the jobs.
The cut in the public sector will include a reduction in unspecified wages, but this is at least 5% in the government offices and in some of the public sector. In addition, clothing and recreation payments will be canceled for a limited period, no additional salary increases will be provided, and approximately 3% of the highest budgetary pensions will be cut.
Some of the cuts will be permanent and some temporary. The law does not currently allow an employer not to pay a recovery allowance, for example, which would mean deferring payments and reducing their rates. Provisions for training funds will also be reduced, but some of them will be able to be withdrawn immediately and not every six years, due to the economic hardship of many workers in the economy.
The big cuts in the public sector will be added to a large-scale transversal cut already scheduled for January, which will be 6% to 8% in all government ministries' shopping budgets. In some of the offices, especially the new ones, which the Treasury calls "the redundant offices", the intention is to cut higher rates, which can greatly reduce activity in these offices. The finance minister also said that the state budget "will be a responsible budget, without decrees and prone to growth. However, the public sector will have to give its share. The Histadrut's chairman must also understand that this time he must help."
Commenting on the Arrangements Law, the Finance Minister said: "There are 40 very important chapters in this law. Some of these are new ones that will create a new reality. It will not be the same as before the Corona crisis. This is a much larger arrangement law than before."
The minister emphasized the importance of the reform whereby institutional funds with NIS 2 trillion, which have not been invested so far in infrastructure and high-tech, will invest money there. He said NIS 100 billion will be invested in infrastructure and NIS 50 billion will be invested in high-tech.