New Framework Agreement for Public Sector Employees

The media recently reported that the Ministry of Finance and the Histadrut (General Federation of Labor in Israel) reached some understandings regarding the framework agreement for the public sector for the years 2020 to 2027. This agreement has not yet been signed, nor has it been published. However, the parties have published the main consents they reached in the negotiations.

Highlights of the Consents

• As early as in their April 2023 salary, many public sector employees will receive a one-time special ILS 6,000 bonus (gross).
• A salary increase of 11% overall was agreed on for all public sector employees. The salary increase will consist of a uniform shekel-denominated NIS 500 increase and a percentage-based salary increment to be made in several aggregated 6% tranches.
• The parties agreed to shorten the workweek by two hours. As one might recall, the Israeli workweek is 42 hours. The consents between the Ministry of Finance and the Histadrut will apply retroactively, so that starting in January 2023, the workweek will shorten by one hour. The parties also agreed to shorten the workweek by an additional hour, starting in January 2025. Accordingly, at the end of the process, the workweek in the public sector will consist of 40 hours.
• For entities with an entity-wide vacation on Passover, this year, employees will receive a half-day vacation at the employer’s expense on the isru chag (Mimouna).
• A 3% increased cost allotment will be made for different sectors of the local government, for different purposes (out of the total volume of the framework agreement). The cost allotment will provide a solution to specific populations and sectors, such as hospital and health fund administrative and support staff, including social workers, psychologists, nurses, X-ray technicians, psychiatric hospital workers, etc.

The Aides’ Agreement

Within the consents reached, the parties agreed on a substantial hike in the starting salary paid to teaching aides in kindergartens and schools, putting it at ILS 7,200 a month for new aides.

Special education aides will receive a starting salary of ILS 8,000 a month, and integrative aides assigned to a child will receive ILS 7,000 a month. 

In addition, the agreement will create a clear and simple salary structure, emphasizing professional development and promoting aides, through study days and training sessions that will entitle aides to a professional level increase of up to ILS 1,600.

Moreover, each aide shall be entitled to a variable amount retention bonus, based on each aide’s individual retention period.

According to the consents, the aides will also receive a one-time ILS 6,000 bonus, like all other public sector employees.

Important Reminder

As noted above, the parties have not yet signed or published the framework agreement for public sector employees. This update relies on publications made by the parties to the agreement. Hence, the foregoing is merely a list of consents that have not yet become a binding agreement, and must be viewed as informational only.

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Barnea Jaffa Lande is at your service for advice on this subject and all labor law issues.

Lior Girshevitz is an associate in the firm’s Employment Department.