After years of stagnant wages and a growing mental health crisis, Israel’s public-sector psychologists are finally getting a long-awaited pay raise. A new reform, announced Thursday by government ministries and the Histadrut labor federation, will boost salaries by an average of 40%, aiming to attract and retain professionals in a field that has faced critical shortages—especially in the wake of ongoing war.
The reform, announced by the Histadrut together with the Ministries of Health, Finance, and Education, comes six months after the announcement of a new collective agreement. It will apply to approximately 5,000 psychologists in the public sector, including those employed by government ministries, local authorities, hospitals, and public clinics.
Under the agreement, psychologists in public service will see an average salary increase of about 40%. A new base salary scale has been established, taking effect retroactively from January 1, 2025. The bases salaries will range from 11,000 shekels (about $3,000) per month for an intern, to 13,000 shekels ($3,550) for a specialist, 15,000 shekels ($4,100) for a supervisor, and 17,000 shekels ($4,650) for a senior supervisor.
In April 2026, all salary grades will receive an additional 250 shekels ($70) to the monthly rate, and in April 2027, another increase of the same amount will bring base salaries to a range of 11,500–17,500 shekels ($3,140–$4,790) for full-time positions.
Psychologists will also receive seniority-based increments: 1.5% per year for the first 25 years of service and 0.6% per year for years 26–30. Military or national service will also count toward seniority, adding 1% per year served. Psychologists in managerial positions will receive an additional pay increase ranging from 5% to 25%, depending on their rank and the size of their department.
The agreement also introduces several additional benefits for public-sector psychologists. These include a professional responsibility allowance ranging from 500 to 1,200 shekels ($140–$330) per full-time position, as well as grants for those taking on expanded roles in public service. Psychologists working in hospitals and community settings will receive specific grants and a readiness bonus. Those with a doctorate in a related field will also receive a salary supplement, and employers will contribute to professional training costs. Additionally, interns who continue in their positions after passing their certification exams will be granted paid leave for the exam.
In September 2024, all public-sector psychologists received a one-time grant of 5,000 shekels ($1,370), based on their employment percentage.
For decades, Israel’s health and education systems have faced a severe shortage of psychologists, a problem that worsened after the October 7 attacks and the resulting war. Low wages have been a primary reason for the shortfall. In December 2023, two months after the war began, a temporary agreement was signed that provided financial incentives for psychologists who committed to remaining in public service and for new psychologists joining the system. The fundamental details of the current reform were finalized in August, and the agreement was signed today.
The funding for this agreement comes from a special budget allocated as part of the framework agreement for the public sector, signed in May 2023, which aimed to improve working conditions in specialized fields. The Health Ministry estimated the cost of the agreement at approximately 250 million shekels ($68.5 million) and stated that if needed, additional psychologist positions would be created in psychiatric hospital wards.
Histadrut Chair: “Psychologists’ Work Is Critical, Especially in These Times”
“Not all wounds are visible, and the war has only reinforced the need for professional, high-quality, and accessible public psychological services to help many people cope. Recognizing the growing demand for mental health support, I made it a priority to strengthen this sector and ensure that skilled professionals are properly compensated,” Histadrut Chairman Arnon Bar-David said at the signing ceremony on Thursday.
“I welcome this historic wage reform for public-sector psychologists, which will bring a dramatic improvement to Israel’s mental health system,” he continued. “This groundbreaking reform will significantly enhance psychologists’ working conditions, and their work is especially critical at this time. The Histadrut will continue leading initiatives that benefit both workers and the public as part of its efforts to strengthen Israel’s national resilience.”
Health Minister Uriel Buso described the agreement as a major milestone. “This wage agreement is a significant step in strengthening the status of psychologists in the public sector and correcting a longstanding injustice,” Buso said. “Psychologists are a cornerstone of Israel’s mental health system, and this agreement is another key step in implementing our national plan at the ministry. It ensures not only professional and accessible services for all citizens but also improved working conditions that will make the public sector more attractive for professionals. I believe this agreement will help recruit and retain top psychologists, whose work is vital to society’s well-being.”
Health Ministry Director General Moshe Bar Siman-Tov added that the Health Ministry is committed to doubling the number of mental health professionals in public service as a result of the war.
Education Minister Yoav Kisch highlighted the reform’s impact on school psychologists. “This reform is the result of extensive efforts to strengthen the status of educational psychologists—those on the front lines of emotional support in schools and communities,” he said. “At a time when students and educators face unprecedented challenges, school psychologists serve as a pillar of stability and resilience. Strengthening their role and salaries is not just a professional necessity but a national priority, as investing in them means investing in Israel’s future generations.”
Finance Minister Bezalel Smotrich called the reform a “significant achievement” for Israel’s public sector. “Psychologists play a crucial role in bolstering national resilience, particularly during crises and, even more so, throughout the war,” he said. “This reform acknowledges their immense contribution to Israeli society and the need to improve their working conditions.”
Haim Bibas, chair of the Federation of Local Authorities, similarly praised the reform. “This agreement marks a real breakthrough for psychologists, introducing a rewarding pay structure that encourages job expansion and investment in professional training,” he said. “Local authorities deeply appreciate the crucial role of school psychologists in building students’ emotional resilience, especially after October 7. We will continue working to enhance human capital in local government and improve psychologists’ working conditions.”
The Movement for Public Psychology organization described the wage agreement as a “historic breakthrough” after 46 years of stagnated wages. “This agreement is not only a milestone for the profession but also for a country that has become traumatized,” the group said in a statement. “It will bring psychologists back into the public system after many left due to years of neglect, thereby reducing wait times and ensuring high-quality services for all, particularly vulnerable populations.”
The organization thanked Bar-David for his commitment to psychologists. “The road to this agreement was not easy, with many obstacles, but solutions were found, and compromises reached in a respectful and professional manner,” the movement said.