New labour standards in the private power generation sector
16.09.26
Beginning April 2026, Israel’s minimum wage will increase by 3.3%, following the Histadrut’s successful campaign to prevent a freeze in the 2025 state budget. With the Labor Minister’s approval, the new minimum wage will be:
In the public sector, hourly wages will be calculated based on 173.33 monthly hours, reflecting the shortened workweek.
This increase will provide vital relief for tens of thousands of families during a challenging economic period. For households where both partners earn minimum wage, annual income will rise by more than ₪4,700.
By law, the minimum wage is updated every April to at least 47.5% of the average wage, as determined on January 1, unless a higher rate is set by special order. This year’s update adds about ₪196 per month, a 3.3% improvement.
Public sector employees receiving minimum wage supplements will also see similar increases. In industries with collective agreements and extension orders, sector-specific minimum wages—already higher than the national minimum—will rise accordingly. Examples include:
This achievement follows extensive negotiations led by Histadrut Chairman Arnon Bar-David and his team with the Finance Ministry during the 2025 budget negotiations. Bar-David insisted on maintaining the linkage to the average wage and preventing any freeze, even under complex budget conditions.
Acting Chairman Roee Yaakov stated:
“In these challenging times, our moral duty is to protect those earning the lowest wages. The April increase is a lifeline for many workers. This success reflects determined leadership and responsible negotiations, driven by a commitment to social and economic balance. The Histadrut will continue to fight for better wages and economic stability for all.”
