New collective agreement boosts municipal pay

Amid economic challenges in Israel, the Histadrut and UCAPSE have signed a landmark collective agreement delivering significant wage increases, doubled management allowances, and one-time bonuses for tens of thousands of municipal workers in education, social services, and administrative sectors nationwide.

The Union of Clerical, Administrative and Public Service Employees (UCAPSE), the Federation of Local Authorities in Israel, and the Forum of the Three Large Cities (Tel Aviv, Haifa, and Jerusalem) have signed a new collective agreement. Approved by the Ministry of Finance, it delivers substantial wage increases, updates management allowances, and enhances working conditions across education, social services, and municipal administration.

This agreement reflects the Histadrut’s ongoing commitment to adapting workforce structures within local authorities, ensuring fair compensation and recognition for the vital public services provided by municipal employees nationwide.

Comprehensive pay raises and sector-specific upgrades

Under the terms of the agreement, thousands of municipal workers across multiple professional categories will benefit from updated compensation structures. Starting September 1, 2026, educational institution security officers, laboratory technicians, and school IT staff will receive a monthly wage increase of NIS 400 for a full-time position, paid retroactively to the signing date of the agreement.

Bargaining on a new compensation framework during these challenging economic times in Israel was far from easy. The UCAPSE team, led by UCAPSE Director General Amichai Stinger, offered creative solutions to reach an agreement that will meaningfully promote the take-home salaries of skilled public workers and managers.

In the welfare sector, municipal social service department budget estimators will receive a monthly increase of NIS 600 for a full-time position, implemented in two phases. School secretaries and educational facility maintenance heads will see their sector-specific allowance increased to 20% of their base salary. Human resources and payroll workers will receive a series of one-time bonuses totaling thousands of shekels, while building inspectors will see their maximum monthly premium cap raised to NIS 1,350. Furthermore, management allowances across local authorities will be doubled up to 30%, depending on the management tier.

“This is a historic agreement that represents a significant breakthrough in local government, benefiting tens of thousands of workers,” said Arnon Bar-David, Chairman of the Histadrut. “Even during challenging economic times, we succeeded in delivering this agreement, which demonstrates the strong alliance between the Histadrut and local government.”

Gil Bar-Tal, Chairman of UCAPSE, added: “This represents a major wage advance for specialized sectors among local authority employees whose wages have eroded over the years while their tasks and responsibilities continued to grow.”

Our local government and public sector workers play a fundamental role in maintaining social infrastructure, providing essential services, and supporting resilient communities. Ensuring fair wages, protected collective bargaining rights, and decent working conditions for municipal staff is essential to preventing the erosion of public services and safeguarding quality employment worldwide.

The Histadrut remains fully committed to defending public sector workers, promoting strong collective bargaining frameworks, and advancing wage fairness to ensure dignified livelihoods for all local government employees.