Cost of living - Working for the workers of Israel
Rising inflation and everyday living expenses directly impact the quality of life for working families across Israel. The Histadrut treats the fight against the cost of living as a top priority; A non-partisan social struggle to protect every worker’s economic dignity and purchasing power.
Through robust collective bargaining, direct consumer initiatives, and nationwide public advocacy, the Histadrut works on multiple fronts to lower expenses and ensure wages keep pace with productivity.
1. Minimum wage: Economic fairness & productivity
“In challenging economic times, our moral duty is first and foremost to care for low-income earners. The minimum wage increase is a breath of fresh air for many working men and women. I want to emphasise that this move is the result of determined leadership and state-level, responsible negotiations led by the Histadrut Chairman with the Ministry of Finance, stemming from a deep commitment to protecting vulnerable populations and maintaining Israel’s social and economic balance. The Histadrut will continue to stand guard and act to improve wage conditions and foster economic stability that serves the good of the entire public.”
— Roy Yaakov, Histadrut Deputy Chairman, ahead of the April 2026 minimum wage update
Why raising the minimum wage benefits everyone
The gradual raising of the minimum wage encourages companies to raise labour productivity not by layoffs but through organisational changes and employee training, in order to increase the return on investment due to the higher wages. This effect is not limited only to minimum wage workers, but also raises the wages of workers earning above the minimum wage, although to a lesser extent.
Following a November 2021 National Economic Package Deal made between the Government of Israel, Histadrut, and the Employer Organisations, the minimum wage rose from 5300 NIS per month, an increase of more than 20% over five years.
National statutory minimum wage
- Monthly Base: ₪6,443.85 per month for full-time positions.
- Hourly Base: ₪35.40 per hour (calculated at ₪37.17 per hour in the public sector based on the shortened 173.33-hour workweek negotiated by the Histadrut).
- Guaranteed Indexation: The statutory floor automatically adjusts every April to equal at least 47.5% of the national average wage, safeguarding low-wage workers against inflation and wage erosion.
2. Direct consumer action: Lowering everyday expenses
Beyond the workplace, the Histadrut actively intervenes in the consumer market to shield working families from high retail markups and unfair price increases.
Consumer clubs & purchasing power
The Histadrut harnesses the collective buying power of hundreds of thousands of workers to secure exclusive financial benefits:
- The Histadrut’s online Social Supermarket is a subsidised service offered to all its members and was built to directly disrupt retail inflation by offering discounted essentials such as household staples, dry goods, cooking supplies, and personal care products at heavily reduced prices. The supermarket offers value packages specially curated for families, helping cut recurring monthly supermarket bills.
- “Together for You” (Biyachad Bishvilcha) is Israel’s largest social benefits club. It provides over 350,000 members with exclusive discounts on everyday consumer goods, leisure, culture, and essential services.
- Healthy Employees Club is a wellness initiative that converts daily physical activity (step counts) into tangible financial savings on health and lifestyle products. Sometimes participants can use their benefits to receive free deliveries from the Social Supermarket.
- Smart Consumer Mobilisation: From time to time, the Histadrut Guides workplace committees to direct their purchasing power toward fair-priced domestic suppliers or to businesses from areas affected by the war.
Histadrut’s Consumer Authority
Serving as an active watchdog for market fairness and consumer rights, the Consumer Authority offers legal support and complaint handling, assisting members with individual legal guidance and resolution when facing deceptive business practices or unfair contracts. It also promotes public campaigns, mobilising workers to “Buy Smart”. When major distributors implement unjustified price hikes, the Consumer Authority promotes affordable local alternatives and holds monopolistic suppliers accountable.