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Economy21:00 · Sep 5

Israel Overhauls Defense Ministry Salaries, Ending Bonus System

Updated Sep 6, 2026
Translated & summarized from Mignews by baba
The story · English

Israel's Ministry of Defense, Ministry of Finance, and the Histadrut labor union, along with employee representatives, have signed a new collective agreement to reform salary structures for Ministry of Defense employees. The agreement, effective until August 31, 2030, replaces a decades-old bonus system with fixed salary increments that will be factored into pension calculations and social benefits. This reform aims to resolve long-standing issues with the old system's adaptability and settle persistent disputes, according to the Ministry of Finance.

The new agreement introduces percentage-based salary increases. Administrative staff, school principals, engineers, and technicians will see a 14.3% raise, while social workers will receive increases ranging from 10.73% to 15%. Additionally, the pact establishes a monthly bonus for perfect attendance regarding sick leave, grants for outstanding performance for 25% of eligible employees, and targeted payments for students.

Histadrut Chairman Arnon Bar-David hailed the agreement as an act of "historic justice," emphasizing the shift from outdated payment methods to a stable, advanced model. Director General of the Ministry of Defense, Maj. Gen. (res.) Amir Baram, stated the agreement supports a strategy to strengthen human capital. Efi Malkin, head of the salary department at the Ministry of Finance, highlighted the necessity of abandoning the obsolete system, citing remarks from the State Comptroller.

Read the original at Mignews
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