International workers day 370.
(photo credit: REUTERS)
While employers’ share of the national income grew in 2012, workers’ share
remained the same as it was in 2011, 62 percent, according to a report released
The study was carried out by the Adva Center – which examines
Israeli society from the perspectives of equality and social justice – and was
released to coincide with May Day.
The report shows that while their
share remained stagnant in 2012 and was significantly lower than it was 10 years
ago – 67% – workers did benefit from job growth and the continuing decline of
unemployment, which stood at only 6.9% last year.
According to the study,
employees should have earned, on average, an additional NIS 10,924 in 2012,
which is equivalent to NIS 910 per month.
Between 2002 and 2012, national
income grew by 46%, workers’ income increased by 35% and employers’ income grew
During that decade, the median salary per employee did not
exceed 63% of the average salary per employee.
The data also showed that
employers’ participation in funding social benefits for their employees is lower
than in most developed countries.
The study also revealed that in 2011,
25.8% of employees in Israel received a salary defined by the OECD as low. The
country’s lowest earners include 34.7% of Israeli women, 34.3% of the Arabs
living in Israel, 34% of people who lack a high school diploma and 26.8% of the
country’s immigrants from the former Soviet Union.
“What this data means
is first of all that our economy is an economy with relatively low salaries,”
Dr. Shlomo Swirski, one of the researchers who issued the report, told The
Jerusalem Post on Wednesday.
Swirski explained that the Adva report
focuses on the median wages rather than average salaries because averages are
not representative of workers’ conditions.
“When we talk about average,
we also include Israel’s successful hi-tech industry for example, where the
average wage is double the average wage of the rest of Israeli society,” he told
“It’s nice, but hi-tech really only constitutes some 13% of the
country’s economy, so looking at the average is not representative.”
we want a higher living standard and higher salaries, we need to expand the
hitech industry,” Swirski stated.
“For that, we... need to improve our
education system, which today does not produce enough hi-tech workers.”