israel’s minimum wage updated for first time in five years
Israel’s minimum wage is increasing. For the first time in five years, the minimum wage in the country is being updated, rising by 5.12%.
This update applies to the entire economy and is effective as of April 1, which means employees will find the change in their April 2023 salary (paid in early May).
Compared to ILS 5,300 before the update, the minimum wage for a full-time job will now reach ILS 5,571.75. Similarly, compared to the earlier ILS 29.12, the minimum wage for an hourly worker will now be ILS 30.6 per hour of work.
Employers are asked to be diligent about keeping their payroll systems updated, in addition to updating the minimum wage entries in all employees’ pay slips.
The minimum wage includes the cost of living allowances, base wage, combined wage, and the other fixed increments the employee is offered, according to the statutory provisions. The figure does not include the 13th-month salary, bonuses, reimbursements of expenses, premiums, or family allowances.
The minimum wage update will raise the amount of social contributions to provident funds, overtime pay, sick pay, and vacation pay.
Nonetheless, even if not all employees are paid minimum wages, all employers across Israel must post a notice on their bulletin boards about the update.