Israeli Average Salary Jumps in June, Driven by Holiday Pay
Translated & summarized from Bizportal by baba
Israel's average gross salary surged to NIS 15,218 in June, largely due to holiday bonuses, marking a 7.7% annual increase. However, preliminary July data indicates a 4.3% drop, suggesting the June rise was temporary. Real wages saw a 5.9% increase in June, outpacing inflation.
The story in 6 lines · by baba
- Average Israeli salary rose to NIS 15,218 in June, up 7.7% year-over-year.
- Holiday pay significantly boosted the June average salary.
- Preliminary July data shows a 4.3% decrease in average salary.
- Real wages increased by 5.9% in June, outpacing inflation.
- High-tech sector average salary reached NIS 36,584 in June.
- Job growth in high-tech has slowed despite salary increases.
The average gross monthly salary for an employed Israeli in June reached NIS 15,218, a significant 7.7% increase compared to June of the previous year when it stood at NIS 14,132. This also represented a 6.7% leap from May's average of NIS 14,263. The sharp monthly increase is primarily attributed to holiday bonuses, such as "dmei havra'ah" (recreation pay), commonly disbursed in June. Similar seasonal spikes have been observed in previous years, indicating that this rise may not reflect a permanent increase in base salaries.
When adjusted for inflation, the real salary in June was NIS 12,114, a 5.9% rise from June 2025. With annual inflation at 1.6% in June and slightly lower at 1.5% in July, workers' purchasing power improved as salaries outpaced price increases. Over the second quarter (April-June), real salaries grew at an annualized rate of 4.3%, following a 5.7% increase in the first quarter.
However, preliminary data for July suggests a reversal, with the average salary estimated to have fallen by 4.3% to NIS 14,561. While this is still a 3.5% increase compared to July of the previous year (NIS 14,062), the substantial drop from June highlights the temporary nature of the holiday pay.
The high-tech sector continues to command the highest salaries, with the average in June at NIS 36,584, an 11.7% increase from the previous year. This is 2.4 times the national average but still below the March peak, which included bonuses and stock option exercises. Significant disparities exist within high-tech, with R&D employees earning an average of NIS 56,767, while those in computer programming and consulting, the largest sub-sector, earned NIS 35,808.
Despite higher pay, job growth in high-tech has stagnated, with only a 0.2% increase in positions compared to the previous year, and its share of total employment slightly decreased. This suggests companies are prioritizing existing employees over broad recruitment. Across the economy, non-financial companies employ the largest segment of workers (63%) with an average salary of NIS 16,262, followed by the government sector (20.9%) at NIS 16,047. The financial sector, though employing only 2.6% of workers, boasts the highest average salary at NIS 23,895.
