MK Dov Khenin (Hadash-Joint List) submitted several bills on Tuesday, March 31, the first day of the 20th Knesset, including one which would raise the minimum wage to NIS 30 an hour. MK Khenin noted that raising the minimum wage will increase the purchasing power of working families one or more members of which earn the minimum wage. This, in turn, will stimulate the economy and increase employment. MK Khenin tabled a similar bill last May which was signed by 64 Knesset members (out of 120), from both the coalition and the opposition.
On Monday, the Histadrut (General Federation of Labor in Israel) and the Federation of Israeli Employers announced changes in the framework agreement to increase Israel’s minimum wage.
Histadrut chairman Avi Nissenkorn and the Federation of Israeli Employers chairman Shraga Brosh have now agreed that the minimum monthly salary will remain at 47.9% of the country’s average salary (NIS 9,400) rather than the 51.9% agreed to earlier this year. In exchange, the employers have accepted a fourth increment, in addition to the three previously agreed upon, in the proposed wage hike which will ultimately raise the minimum salary to NIS 5,300 in December 2017. In the first phase, the minimum monthly salary will increase to NIS 4,650 as of this week, on April 1. Subsequently it will go up to NIS 4,825 in July 2016, and from there to NIS 5,000 in January 2017.