Israeli Labor Minister Yoav Ben-Tzur signed an order on Monday raising the monthly minimum wage to 6,247.67 shekels (about $1,700) starting on April 1, up from 5,880.02 shekels (around $1,600).
“Raising the minimum wage during wartime is our ethical and moral obligation to the workers in the economy who are struggling hard to make a living,” the minister said in a statement shared by his office.
Ben-Tzur moved to increase the minimum wage for the third time since taking up his post following the November 2022 election, after it had remained at 5,300 shekels (some $1,440) since 2019.
Israel’s Minimum Wage Law calculates the monthly salary based on a legal workweek of 42 hours, which translates to 182 hours per month. Therefore, the updated hourly salary will be 34.32 shekels ($9.32). There are lower minimum wages for youth under age 18.
In the United States, the federal minimum wage for covered nonexempt employees has been $7.25 per hour, or about $1,218 per month, since 2009, the last time Congress raised it. Many states and some cities have higher minimum wages.
According to World Bank figures, Israel’s 2023 GDP per capita stood at $54,128, compared to the U.S.'s $82,769. The Jewish state ranked behind the U.K. ($58,273) but above New Zealand ($53,481), to cite two examples.
