Members of the Commission on labour, health and social security under the chairmanship of the Knesset member Eli Alaluf («Kulan») unanimously approved a bill to raise the minimum wage from 5,000 to 5,300 shekels a month. The minimum wage per hour will increase from 26.9 to 28.5 shekel of the shekel, and the minimum wage for a full day will rise from 231 NIS 245 NIS, the press service of the party «Kulanu».
The government bill, prepared with the support of Finance Minister Moshe Kahlon, does not expect significant resistance. The lawmakers plan to adopt it in the second and third readings already next Monday, October 30, so that the law on raising the minimum wage came into force from December this year and will be reflected in the payroll and Bank accounts of Israelis in early January, for the payment of wages for December.
«This is important for the citizens of the country the procedure is carried out with the full support of the government, and of course, with the active participation of Finance Minister Moshe Kahlon – said during the meeting Ali Alaluf. – Raising the minimum wage is of great importance not only for the hundreds of thousands of workers receiving the specified minimum, but also on the entire economy. The increase in the minimum wage will positively affect the ranking of Israel in relation to other OECD States, will reduce the level of poverty in the Jewish state».
Agreement to gradually raise the minimum wage was made under pressure of the Israeli national Association of trade unions («Histadrut») in March 2015 and the period from April 2015 to January 2017, the minimum wage was increased three times, with the last increase has reached 5000 shekels. Fourth, raising the minimum wage is subject to the approval of the bill by the Commission on labor, health and social security.
In Israel 25% of employees receive minimum or less than minimum. Raising the minimum wage in parallel with the ongoing Finance Minister Moshe Kahlana increase in negative income tax for workers on low income – the so-called «labor award» («Mayak Avoda»), – will increase the welfare of the most needy Israeli families and support the middle class.
Various measures to support working families, promoted Kahlana, have a positive impact on the labor market in Israel: unemployment for many months held at a record low level, increasing the share of employed working-age population.
«Raising the minimum wage to 5,300 shekels a month – the continuation of our work to reduce social gaps and support working people, – said the Finance Minister Moshe Kahlon. Market condition now good, and we strive to make the strengthening of the economy has affected all segments of the population. We will continue to support employees and employers: it is beneficial for people and for the Israeli economy».