Israel Leads OECD in Education Spending But Faces Overcrowded Classrooms

A new report from the Ministry of Education, based on OECD's "Education at a Glance 2026" data, reveals that Israel dedicates a record 7.4% of its GDP to education, the highest among surveyed OECD nations. This significant investment, representing a 51% real increase since 2015, contrasts sharply with the OECD average of 5.5% and 18% respectively.

Despite the high expenditure, Israel ranks among the countries with the most overcrowded classrooms. The number of students in Israel increased by 17.7% between 2015 and 2023, diluting the impact of increased funding. In 2024, elementary school classes averaged 27.2 students, compared to the OECD average of 20.6, and middle school classes averaged 30 students versus 22.7. This places Israel second in elementary school and third in middle school overcrowding, with class sizes about 32% larger than the OECD average.

Teacher compensation and retention also present challenges. Israeli teachers, particularly in elementary and middle school, teach more hours annually than their OECD counterparts. Their actual salaries are approximately 9% lower than the OECD average for elementary and middle school teachers, and 7% lower for high school teachers, though pre-elementary salaries are slightly higher. A significant portion of teachers, especially those with less than five years of experience (around 80% in elementary, 86% in pre-elementary, and 73% in middle school), are leaving the profession, with 2% to 3% of teachers resigning in the 2024-25 school year.

On a positive note, the report highlights the high educational attainment of Israeli teachers and the general population. A majority of Israeli teachers hold master's or doctoral degrees (51% in elementary, 62.4% in middle school, and 55.8% in high school). Furthermore, in 2025, 40.6% of Israelis aged 25-64 held higher education degrees, a figure that rises to 51.2% when including non-academic post-secondary education, exceeding the OECD average of 35% and 42.6% respectively.