A new agreement signed earlier this month aims to overhaul the salary structure for tens of thousands of local government employees across Israel, offering increased compensation for professional development and setting the stage for long-term advancement opportunities.
The agreement was signed by the Histadrut, the Ministry of Finance, the Federation of Local Authorities, and the municipalities of Tel Aviv, Haifa, and Jerusalem. It significantly raises professional development supplements, thereby reducing reliance on minimum wage top-ups, which have eroded the value of training incentives in recent years.
Professional development compensation, currently set at 328.76 shekels (approximately $88), will now be more effectively integrated into base salaries. The new structure is expected to better reflect employees’ training and education, improve public services, and prepare local authorities for future challenges.
Histadrut Chairman Arnon Bar-David called the agreement “a true and significant salary revolution,” and described it as “nothing less than an education revolution in local government.”
Gil Bar-Tal, head of the Histadrut's public employees union, said the new terms ensure professional development compensation is “a pensionable supplement to the base salary that also affects hourly wage value.”
Federation of Local Authorities Chair Haim Bibas emphasized that the deal “corrects a longstanding injustice” and represents “a real investment in the human capital that serves residents every day.”
The Ministry of Finance also praised the agreement as a foundation for reforming the training system to meet 21st-century public service needs, with expanded opportunities for employees and middle managers.
Negotiations involved a wide range of senior officials from the Histadrut, Ministry of Finance, and major municipalities.
This article was translated from Hebrew by Ronen Cohen.
