Minimum Wage Update
On October 30, 2017, an amendment to the Minimum Wage Law was enacted after being approved during the second and third readings in the Knesset – Minimum Wage Law (Increase in the Minimum Wage Sums - Temporary Order) (Amendment), 5778 – 2017. According to the amendment, as of the salary for the month of December 2017, which is paid at the beginning of January 2018, the monthly minimum wage will be updated to the sum of NIS 5,300 (and, accordingly, the hourly minimum wage will be updated to NIS 28.49).
The legislative amendment will come into effect only after it is promulgated in Reshumot (the official gazette). However, we suggest that employers begin making arrangements to update the salaries of those employees who are earning minimum wage. We also recommend examining whether the legislative amendment affects other employees, namely those for whom the wage calculation is based on the statutory minimum wage.