Friday, October 14, 2011

Bethel Finances: 42% of public sector earn less than average national salary

www.bethelfinance.com

Ministry of Finance Director of Wages Ilan Levin submitted a report on salary results for 574,808 people employed by the government of Israel and public institutions.

42% of public sector employees earn less than the average national salary. According to the annual public sector salary report published by the Ministry of Finance, the average monthly salary of public sector employees in 2010 was NIS 12,929, a rise of 4.8% from 2009.

The report covers 496,559 employees, 184,544 of whom work in the security sector (IDF, Prison Service and Police) and 98,053 in the field of education. The salary report includes data for 754 public bodies (local authorities, municipal companies, municipal associations, government companies, religious councils and statutory enterprises). The total amount paid in salaries for 312,015 employees was NIS 50,460 in 2010.

There is a striking anomaly in the Israel labor market: 36% of public sector employees receive minimum wage supplements. The average monthly salary of these employees, however, is NIS 10,278, 20% more than the average national salary. This is possible because the Ministry of Finance grants various supplements instead of pay raises. This way, employees receive a net salary that is sometimes higher than the average salary, but at their retirement, their monthly pension will drop drastically. Also, 20% of government employees earn less than minimum wage.

No comments:

Post a Comment