The minimum wage is expected to rise to 6,443.85 shekels per month on April 1, according to an analysis by Davar based on the average monthly wage data for October published yesterday (Sunday) by Israel’s Central Bureau of Statistics. This represents an increase of about 3.3%, or 196.17 shekels (compared to the current monthly wage of 6,247 shekels). The hourly minimum wage will increase to 35.4 shekels per hour (compared to 34.32 shekels per hour today).
The minimum wage is updated every year in April to reach 47.5% of the average wage, as determined by the National Insurance Law. The National Insurance Institute of Israel has not yet officially published the average wage (even though increases in the benefits linked to it have been published), but it is calculated each year based on the monthly average from September to October as published by the Central Bureau of Statistics.
The average monthly salary for October was 13,324 shekels (for all workers, both Israeli and foreign), the average salary in September was 13,745 shekels, and in August it was 13,629 shekels – meaning that the average salary according to the National Insurance Law (Section 1), from which the minimum wage is derived, is expected to be 13,266 shekels.
As part of the state budget for 2025, the Ministry of Finance requested to freeze the minimum wage increase – a move that was blocked thanks to the opposition of the Histadrut led by Chairman Arnon Bar-David. "The minimum wage increase is expected to improve the income of tens of thousands of families in the economy and will provide an essential boost during a challenging economic period," the Histadrut added. "In families where both spouses earn the minimum wage, the annual household income will grow by more than 4,700 shekels."
Following the shortening of the workweek in the public sector under the 2023 framework agreement – an agreement between the Ministry of Finance and the Histadrut regarding public sector workers for the years 2020-2027 – the hourly minimum wage in the public sector will be calculated based on 173.33 monthly hours (instead of 182 hours in the rest of the economy) and will stand at 37.17 shekels per hour. Additionally, for public sector workers who receive a 'minimum wage supplement' component, this component is also expected to increase.
In addition, following industry-wide collective bargaining agreements in the economy signed by the Histadrut and extension orders applied to them, workers in the security sector will enjoy wages ranging from 10% to 60% above the national minimum wage, workers in the cleaning sector will receive 675 shekels above the minimum wage, and those in the institutional catering sector will receive 13% above the general minimum wage.
Acting Chairman of the Histadrut, Roy Iakov: "In a challenging economic period, our moral duty is first and foremost to take care of those earning low wages. The upcoming minimum wage increase in April is a breath of fresh air for many workers. I want to emphasize that this move is the result of determined leadership and professional, responsible negotiations led by the Chairman of the Histadrut with the Ministry of Finance, stemming from a deep commitment to protecting vulnerable populations and preserving social and economic balance in Israel. The Histadrut will continue to stand guard and work towards improving wage conditions and ensuring economic stability that serves the benefit of the entire public."
