Minimum Wage in Israel Gets a Boost: How Does it Affect Workers?

As of yesterday, April 1, 2024, the minimum wage in Israel increased to ₪5,880.02 per month for a full-time position and ₪32.31 per hour. This represents a significant jump of around ₪309 per month, which translates to a 5.5% improvement over the previous minimum wage. This change is attributed to Israel’s automatic minimum wage adjustment mechanism, which ensures the minimum wage stays relevant by keeping it at least 47.5% of the average national wage. Recalculations happen annually in April.

The impact of this increase is felt across various aspects of the Israeli workforce, and the good news extends to many of the Histadrut members, and really, to almost everyone! All employees in Israel aged 18 and above are now entitled to a minimum wage that meets or surpasses the newly updated standard that was set earlier this year. This step ensures a baseline level of income for a significant portion of the working population.

Of course, there’s a domino effect when it comes to the minimum wage. When it serves as the basis for calculating benefits like sick leave pay, social security contributions, and severance packages, the employer’s social security contributions will also increase accordingly. The minimum wage increase also applies proportionally to young workers (under 18) based on their age. This ensures a fairer wage structure across different age groups in the workforce.

The Histadrut welcomes the update of the minimum wage. As Israeli society has seen the cost of living rising due to the war, this minimum wage increase is a positive development for hundreds of thousands of workers in Israel.