Minister of Labor Yoav Ben Tzur signed an increase in the minimum wage, and as of April 1, 2024, the monthly minimum wage will amount to NIS 5,880.02 for a full-time position.
The minimum hourly wage is NIS 30.61.
The increase in the minimum wage follows the increase in the average wage in the economy to NIS 12,379 per month, and will take place starting in April 2024.
The presidency of the business sector headed by Dobi Amitai opposed the increase on the grounds that it is a heavy burden on businesses.
The automatic update mechanism of the minimum wage, as defined today in the law, states that every year in the month of April – the minimum wage in the economy will be updated and will be no less than 47.5% of the average wage, as determined on January 1 of that year. This, to the extent that a higher minimum wage is not determined by the hourly rate.
In recent years, and before the update that came into effect in April 2023, the minimum wage in the economy stood at NIS 5,300 (as determined by the hourly order as of December 1, 2017). In the years 2021-2022, the average wage in the economy was frozen as defined in Section 1 of the National Insurance Law, in order to stabilize the state budget and prevent the distortions created during the Corona crisis. With the end of the freeze period, and as detailed above, the minimum wage was updated and increased from NIS 5,300 to NIS 5,571.75. This is an increase of over 5% in the monthly minimum wage.
The amount of the minimum hourly wage is calculated by 5,571.75 (minimum wage) divided by 182 monthly hours. It should be noted that the work week in the economy will be shortened from 186 to 182 hours by the expansion order, but as of this stage the legislator has not yet updated the change in the law.
The daily minimum wage for an employee who works at a workplace where they work 6 days a week is NIS 222.87 (based on a calculation of 5,571.75 divided by 25). The amount of daily minimum wage for an employee in the private sector who works at a workplace where they work for 5 days is NIS 257.16 (according to a calculation of 5,571.75 divided by 21 and 2/3). In any case, the wage per hour of work must not be less than NIS 30.61.
When a minimum wage is paid to an employee and it is the determining wage for the purpose of paying sick pay, social contributions and severance pay, then the social components set aside by the employer will rise in accordance with the increase in the minimum wage in the economy.
Regarding recovery fees, it should be noted that the rate of recovery fees is updated in the expansion orders, therefore, the calculation of this right does not depend on the increase in the minimum wage.
For any question regarding your rights as an employee, you can contact the Histadrut’s information and service center at *2383. The hotline is active from Sunday to Thursday, between the hours of 08:00 and 18:00.
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