![[Israel] Minimum wage earners lose $857 per month](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-Bethlehem-Israel-December---400218887_1200x.jpg?v=1632087645)
New research has revealed that Israelis earning minimum wage lose an average of $857 (NIS 2,750) per month after paying for living expenses, the second-highest monthly deficit in the world, The Jerusalem Post reports.
Israel’s minimum wage is NIS 5,300 per month - or about NIS 29 per hour - a sum last updated in December 2017. The report, compiled by money.co.uk, calculated the monthly minimum wage in each country based on adjusted data from the OECD, minus the average cost of living for one person and average rental prices.
Minimum-wage workers in the United States reportedly lose the most; an average of $876 per month. There was a considerable gap between the income figures for the United States and Israel and the third country on the list, Slovakia, which shows a $580 monthly deficit for minimum wage workers. Mexico ($563) and Luxembourg ($505) rounded out the top five.
The countries with the highest levels of disposable income for minimum-wage workers are France ($466), Turkey ($424) and Poland ($240).
It is noteworthy that the minimum wage is lower than the cost of living in most countries, with workers in 59 per cent of countries losing money every month. Worldwide, the average minimum-wage worker loses $128 per month after rent and living costs, according to the report.
Israel has not updated its minimum wage in nearly four years, although the current rate is about 38 per cent higher than it was a decade ago when it stood at NIS 3,850 per month. The Histadrut labour union has argued for raising the rate to NIS 6,000 per month but there is a general sense that the minimum wage cannot be raised during the COVID-19 pandemic, as a result of the economic uncertainty that continues to plague local businesses.
Higher salaries mean higher costs for businesses, many of which are still struggling with the loss of income from overseas tourism and the ongoing fears and uncertainty surrounding quarantine.
However, there is pressure for stores and restaurants employing low-skilled workers to increase their compensation packages, as many have had difficulties rehiring workers over the course of summer even after government unemployment benefits ended in July.
Israel’s cost of living has risen by only 7.5 per cent in the last 10 years, the fourth-lowest rise in prices in the world, the report said.
Source: The Jerusalem Post
(Link via original reporting)
New research has revealed that Israelis earning minimum wage lose an average of $857 (NIS 2,750) per month after paying for living expenses, the second-highest monthly deficit in the world, The Jerusalem Post reports.
Israel’s minimum wage is NIS 5,300 per month - or about NIS 29 per hour - a sum last updated in December 2017. The report, compiled by money.co.uk, calculated the monthly minimum wage in each country based on adjusted data from the OECD, minus the average cost of living for one person and average rental prices.
Minimum-wage workers in the United States reportedly lose the most; an average of $876 per month. There was a considerable gap between the income figures for the United States and Israel and the third country on the list, Slovakia, which shows a $580 monthly deficit for minimum wage workers. Mexico ($563) and Luxembourg ($505) rounded out the top five.
The countries with the highest levels of disposable income for minimum-wage workers are France ($466), Turkey ($424) and Poland ($240).
It is noteworthy that the minimum wage is lower than the cost of living in most countries, with workers in 59 per cent of countries losing money every month. Worldwide, the average minimum-wage worker loses $128 per month after rent and living costs, according to the report.
Israel has not updated its minimum wage in nearly four years, although the current rate is about 38 per cent higher than it was a decade ago when it stood at NIS 3,850 per month. The Histadrut labour union has argued for raising the rate to NIS 6,000 per month but there is a general sense that the minimum wage cannot be raised during the COVID-19 pandemic, as a result of the economic uncertainty that continues to plague local businesses.
Higher salaries mean higher costs for businesses, many of which are still struggling with the loss of income from overseas tourism and the ongoing fears and uncertainty surrounding quarantine.
However, there is pressure for stores and restaurants employing low-skilled workers to increase their compensation packages, as many have had difficulties rehiring workers over the course of summer even after government unemployment benefits ended in July.
Israel’s cost of living has risen by only 7.5 per cent in the last 10 years, the fourth-lowest rise in prices in the world, the report said.
Source: The Jerusalem Post
(Link via original reporting)