Passion vs. Paycheck: Why Public Sector Workers Deserve Better

Public sector workers—teachers, nurses, social workers, emergency responders, and countless others—dedicate their careers to serving the community. They educate children, care for the sick, support vulnerable populations, and keep society running. But despite the essential nature of their work, many of these workers face low wages, understaffing, and burnout.

“The state treats employees as a burden rather than an asset. We see repeated privatizations and outsourcing, but what we need is long-term investment in the people who keep the country running.“ – Attorney Ofir Alkalay

While passion for their jobs keeps them going, it often comes at a cost. Long hours, emotionally demanding roles, and stagnant wages have made it increasingly difficult for workers to stay in the sector.

The challenges extend beyond individual struggles—when public sector workers are overworked and undervalued, the quality of essential services declines, impacting entire communities. In the Eilat Conference for Labour, a panel convened to respond the question: why are those who dedicate themselves to public service expected to sacrifice financial security and well-being? And more importantly, what can be done to ensure they receive the pay and conditions they deserve?

“Intrinsic motivation alone doesn’t pay the bills.” – Efi Malkin

Ensuring fair compensation isn’t just about supporting workers—it’s about fortifying the entire public sector, especially in times of crisis when these essential services are needed most. The war and the pandemic have exposed both the strengths and vulnerabilities of Israel’s public sector. Public employees have repeatedly stepped up to serve the nation in its most challenging moments, from healthcare workers on the pandemic’s frontlines to tax authority officials managing war-related financial aid. Yet, systemic issues persist, particularly regarding emergency preparedness and professional shortages in essential services. Ohad Elkabetz, Deputy Wage Commissioner, acknowledged that Israel’s ability to expand public services during emergencies remains limited. “If we had more contingency plans and a deeper workforce reservoir, our response time would improve significantly,” he admitted. One of the key challenges identified was the severe shortage of mental health professionals, particularly in trauma care.

Histadrut’s IUGE Chairman, Attorney Ofir Alkalay , argued that the Israeli government must rethink its approach to labor policies. “The state treats employees as a burden rather than an asset. We see repeated privatizations and outsourcing, but what we need is long-term investment in the people who keep the country running.” He criticized the continued reliance on short-term employment contracts, stressing that sustainable workforce development is critical to the nation’s future.

One innovative approach to addressing wage disparities in the public sector is the ‘Box Model,’ a groundbreaking framework that has reshaped salary agreements and workforce stability. Historically, labor negotiations in Israel’s public sector were often contentious, with wage increases and labor conditions tied to the threat of work stoppages or major reforms. But a shift in philosophy has led to a more constructive approach. The ‘box model,’ implemented through agreements between the Histadrut and the Ministry of Finance, provides a pool of funds that can be distributed selectively to correct wage disparities among different public sector professions. As Efi Malkin, the Treasury’s Wage Commissioner, explained at the Eilat Labor Conference, the goal is simple: “We are trying to separate employment from the need to create crises to receive fair compensation.”

Malkin acknowledges that most public sector employees are motivated by a deep internal drive to serve. A government survey found that workers in public service place significant importance on contributing to society and making a meaningful impact. However, as Malkin conceded, “Intrinsic motivation alone doesn’t pay the bills.” Hence, the ‘box model’ ensures fair and structured compensation while maintaining the integrity of labor relations. Rather than wait for a crisis to force wage negotiations, the model allows for proactive adjustments, prioritizing sectors like healthcare and social work that are often underfunded.

A powerful example of how collaboration can drive positive change is found at Ashdod Port, where strategic agreements have demonstrated the benefits of fair wages and strong labor relations. In the private-public sector interface, particularly in Ashdod Port, workers and management demonstrated an exemplary model of labor relations in new agreements reached. As Eyal Yadin, Chairman of the Histadrut’s Transport Workers’ Union, highlighted, the port faced severe operational challenges due to the war. Recognizing the urgency of maintaining supply chains, the workers’ committees and management came together, engaging in real dialogue to prevent bottlenecks. “The results speak for themselves,” Yadin noted. “Ships did not wait in line because we found ways to optimize manpower and efficiency through real partnership.”

The Histadrut helped to craft strategic workforce agreements that allowed the port to maintain full capacity during the war. The success was not just in numbers—it was a demonstration of how management and labor, can function as real partners in testing times that call for national resilience.

A strong and resilient public sector cannot be built on passion alone. To ensure that essential services function effectively—especially during crises—public sector workers need fair pay and dignified working conditions.

Without competitive salaries and sustainable work environments, the nation risks losing skilled professionals and weakening critical services. Investing in the public workforce is not just about fairness; it’s a necessity for national resilience, long-term economic stability, and the well-being of all citizens.

The way forward? Proactive labor agreements, long-term workforce planning, and a renewed commitment to valuing public employees. The question is no longer whether public workers deserve better—it’s how quickly we act to ensure they get what they need.

Information for this article was taken from Davar articles on the Puclic Sector pay and on a panel on the need to improve it.