Labor deal set to increase minimum wage to NIS 6,000, allow work from home

The Finance Ministry and Histadrut labor union are close to a deal in which the minimum wage will be raised, workers will receive more vacation and will also be allowed to work one day from home.

  Bus drivers protest against low wages and bad working conditions in Tel Aviv (photo credit: AVSHALOM SASSONI/MAARIV)
Bus drivers protest against low wages and bad working conditions in Tel Aviv
(photo credit: AVSHALOM SASSONI/MAARIV)

An impending agreement between the Finance Ministry and the Histadrut labor federation will raise the minimum wage to NIS 6,000 per month, increase vacation days, and possibly include at least one day of working from home, according to the Histadrut.

The labor agreement, which is expected to be finalized in the coming week, would be the first of its type since 1984.

According to the deal, the minimum wage will be raised from NIS 5,300 a month today to NIS 6,000 by 2026, increasing by NIS 700 over the course of five years. The first increase of NIS 100 is expected next April.

The increase is good news for workers, but still less than the NIS 40 per hour minimum wage some have been expecting. That rate would come out to a monthly salary of NIS 7,280.

Meanwhile, employees would be entitled to a minimum of 13 or 14 vacation days per year, instead of the current minimum of 12. In return, the number of weekly work hours will not be cut.

Histadrut labor federation chairman Arnon Bar-David (credit: HISTADRUT SPOKESPERSON)Histadrut labor federation chairman Arnon Bar-David (credit: HISTADRUT SPOKESPERSON)

In addition, all public sector workers will be allowed to work from home one day a week, as long as their job requirements allow for it.

“This is a real breakthrough,” a Histadrut spokesman said.

Finally, there will be no increases or decreases of salaries in the public sector during 2022, with several exceptions.

A final agreement is expected to be published soon.

“Will there are those who are shouting before the goal, the details of the package deal have not yet been finalized, and there are no further agreements on the deal,” said Manufacturers’ Association president Dr. Ron Tomer. “In order to be able to close a real and good package deal for the economy, it is necessary to finalize details about flexible working hours, fighting fictitious sick days and more. We will continue to work for the benefit of a package deal that will bring real improvement, as we have done for months, with concern only for the good of the Israeli economy.”