The Histadrut has long advocated that working people share in the wealth and that incomes should rise as workers’ productivity increases. Increasing the minimum wage is a positive step in rewriting the fairness of our economy so that it benefits working people.
The gradual raising of the minimum wage encourages companies to raise labour productivity not by layoffs but through organizational 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 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 Organizations, the minimum wage is expected to rise from 5300 NIS ($1,690) per month to 6000 NIS ($1,910) by 2026, increasing by $220 over five years.