Treasury plans pay cuts for doctors, teachers, and civil servants

The Israeli Ministry of Finance is considering imposing great salaries on doctors, teachers and employees in personal contracts in the civil service, as it reached about 3.3 % per month between April and 2025, as these employees were not included in reducing salaries imposed on other public sector employees.

The plan, which will enter into force after the approval of the state budget for the year 2025, is an expansion of the broad planned plan between the Ministry of Finance and the General Union of Service last November. This step aims to ensure the goal of saving in the budget of 5 billion shekels in 2025, as part of the efforts made to reduce the state budget deficit.

Unlike public sector employees represented directly by Histadrut, who were delivered to reduce salaries 2.29 % in December 2024, doctors, teachers and employees have not yet been affected. This is because the agreement with Histadrut does not apply directly to them, and only after its approval as part of the economic arrangements law enacted by the Ministry of Finance along with the state budget, it will be possible to expand the legislation to all public sector employees – approximately 700,000 people.

The temporary pieces have been canceled

The full outlines of discounts, including the cuts that have already entered Histadrut employees, are conditional on the final approval of the state budget. If the budget is not approved, the cuts will be canceled retroactively and the money will be returned to the employees. The deadline for approval of the budget in three readings in Knesateet is March 31, 2025. If the budget fails, for political reasons such as conflicts over the law of recruitment or the continuation of the war in Gaza, the Knesset will clarify and will resolve the country, go to the elections.

The broad lines that were formulated between the Ministry of Finance and Histadrut came due to the rise in defense spending, a year after the parties delivered an agreement to reduce wages to public sector employees as part of the agreement. Instead of frozen freezing of wages, which was originally planned, the Ministry of Finance and Histadrut finally agreed to a formula for temporary wage discounts, while receiving high wages on time.

The framework agreement graduated steps to increase wages. The last of which was a 2 % increase in December 2024, and the following charges will be a 1.5 % increase in April 2025 and 1.5 % in April 2026. At the same time, according to the November Convention, the temporary reduction by 2.29 % was made between December 2024 and DECEMBER 2025 , Which will drop to 1.2 % in 2026 was canceled at the end of next year.

The bottom line is that, according to the planned detailed plan, while public sector workers are represented by Histadrut, they already see a slight decrease of about 0.29 % in their checks, due to the gap between the December increase and its reduction, the rest of the public is expected to suffer the sector workers who have not signed a collective agreement From a more clear reduction, but for a shorter period.

It was published by Globes, Israel Business News – En.globes.co.il – on February 25, 2025.

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