Histadrut and Government agree to a groundbreaking framework agreement for public service workers

The Ministry of Finance and the Histadrut presented today the principles of a public sector framework agreement for 2020-2027

The Ministry of Finance and the Histadrut came to an understanding about the public sector’s framework for 2020-2027 following prolonged negotiations led by Histadrut Chairman Arnon Bar-David, Director General of the Ministry of Finance Shlomi Heisler, the Acting Commissioner of Wages Effi Malkin and the Commissioner for Budget, Yogev Gradus.

The principles of the agreement include:

• Additional salary to public sector employees:
  • The eligible workers will enjoy a uniform salary supplement of NIS 500 and a percentage of 6%. The wage increases will be given in installments throughout the period of the agreement. In addition, to facilitate employees, a one-time grant of NIS 6,000 to all employees during April and the Passover holiday. It has also been agreed that 1% of the needs of the various employers in the public sector can be allocated, with the agreement between the management and the workers’ committee.
• Raising productivity and improving public service management capabilities:
  • The management will be able to make moves that will improve services to the public and promote public services, including technological changes and employee job rotation, along with continued discussions on the employment structure.
• Shortening work week:
  • It was agreed that the public sector working week would be shortened from 42 to 40 weekly work (a value of about eight monthly hours).
• Responding to specific needs:
  • 3% of the cost of the agreement will be assigned to local government sectors and other sectors such as social workers, administrative workers, psychologists, nurses, radiographers, and psychologists. This is to improve services to the citizen and to deal with various challenges that characterize these sectors, such as recruitment, conservation, and motivation.
• Human resource improvement processes:
  • The parties agreed to make adjustments in the termination of employment process due to existing worker functional discrepancies in limited quotas and certain bodies.
• Personal Contracts:
  • Against a mechanism for streamlining the service in local government and higher education. Expanding the employment quota in personal contracts and allowing flexible collective employment and increased wages for selected professions at universities.
• Improving the Labor Relations System:
  • Expanding the agreed arbitration activity.
• Welfare Fund for accumulated pensions:
  • The activity of the retiree welfare fund will also be expanded, even for employees who retire in an accumulated pension plan.
• Commitment to exhaust claims until the end of 2027 (end of the agreement).

Finance Minister Bezalel Smotrich: “We bring an excellent achievement for the Israeli economy and citizens. An achievement of responsibility, stability, and certainty for many years. And that is exactly what the economy needs today.

The agreement we have reached is an unprecedented agreement – even at the speed of signing it, without labor disputes and strikes, and for the extended period that it guarantees stability in the economy and also combined with the three mechanisms – a payment supplement, a percentage addition and an additional amount that will allow responding to specific target populations in the years to come for employees.

This is a responsible agreement that does not break the government budget and supports our effort to restore inflation to the target range and leave it there. This is the best service we can do to workers and citizens of Israel.

I would like to thank the Chairman of the Histadrut, Arnon Bar-David, for his cooperation, leadership, and responsibility he has discovered and for effective negotiations, practically and respectfully.”

Histadrut Chairman Arnon Bar-David welcomed the agreement, saying: “It is difficult to overstate the importance of this historical and celebrated day to hundreds of thousands of employees and public sector workers. Finally, after years of a global epidemic, an economic upheaval, and a cost of living crisis, where the public sector knew to give a shoulder for the economy’s recovery, they will be rewarded for their dedicated work in favor of Israeli citizens.

In front of my eyes, I see all the workers, especially those at the low wage levels – who can now be uplifted and know that thanks to the framework agreement, which we worked for nights as days, you can earn a decent living. With a dedicated budget box, the agreement will allow us to take care of all the weakened sectors, elevate them, and significantly strengthen the entire public sector.

During the dialogue and partnership, we were able to achieve real achievements for each and every one of you, especially in these days of climbing inflation. Along with a special NIS 6,000 grant that will make this Passover much happier, the employees will see an impressive increase in their pay slips.

And no less important-after years in which Israel led the list of the number of working hours, we reached a breakthrough on the subject and dramatically shortened the 40-hour work week-a move designed to give employees a better balance between professional life and personal life. In such a way, both work in the workplace, and we will maintain productivity.

From here, we launch the unprecedented news for tens of thousands of teacher aides, who can take pride in the fact that their essential industry in our children’s education also is rewarded. Not only will the salary of beginner teacher aides rise, but the entire sector will receive the encouragement it has deserved for a long time.

I want to thank Finance Minister Bezalel Smotrich and the office, who have been fair and respectful in negotiations with the understanding that strengthening the public service will benefit the state and its citizens.”

The main points of the agreement:

1. Salary increase of 11% according to the following distribution:
   Shekel addition 2023:
   • June 2023 – an addition of NIS 400.
   • October 2024 – supplement for NIS 500.
   2023 percentage increase:
   • December 2024 – 2%
   • April 2025 – completion to 3.5%
   • April 2026 – completion to 5%
   • April 2027 – completion to 6%
2. Cost of living grant – a special grant of NIS 6,000 intended to help deal with the cost of living.
   About 40 percent of the workers in the low wage levels in the public sector will benefit during 2023 from an increase of over a thousand shekels in their monthly wages thanks to wage increases and the expected increase in the minimum wage (during April).
3. Shortening the work week – the work week in the public sector will be shortened by two hours:
   • June 2023 – 41 hours per week (1-hour reduction)
   • January 2025 – 40 hours per week (1-hour reduction)
   The result: hundreds of thousands of families in the State of Israel will work 104 hours less per year without reducing their wages. This step will increase the workers’ welfare and improve productivity in the economy.
4. Salary corrections for unique sectors: a dedicated budget to strengthen specific sectors: administrative and economic workers in the government hospitals and health funds, medical technologists, radiographers, social workers, nurses, psychologists in the public service, and psychiatric hospital workers.
5. A welfare fund for retirees with accumulated pension plan: A welfare fund for retirees with the accumulated pension plan will be established, similar to the fund that works for the welfare of state pensioners in the budget pension. Through it, the state subsidizes activities and benefits for retirees.
6. Payroll 2023 – Employees will be given an additional half day off on the occasion of Mimouna, which will be at the employer’s expense.