Government Companies Report Huge Salary Gaps and Record Profits in 2025

The 2025 report from the Israeli Government Companies Authority reveals significant income disparities and record profits across state-owned enterprises. Rafael leads with the highest average gross monthly salary for senior employees at 85,170 shekels, while the average worker at the Community Centers Company earns just 5,168 shekels. The Ports Company of Israel (PCI) tops the list for average employee salary costs at approximately 47,624 shekels per month, closely followed by Rafael with 47,407 shekels. The Aerospace Industries also pay senior executives an average of 81,687 shekels monthly. These three companies, along with the Israel Electric Corporation, employ the largest number of senior staff among government firms.

The report highlights extensive nepotism, with 38% of employees at Mekorot, 27.7% at Ashdod Port, and 24% at Rafael being relatives of other employees. Gender representation remains low in senior management, with only 17% female executives at Ashdod Port and Aerospace Industries. Notably, Netivei Ayalon stands out with 48% women in senior roles and a female CEO. Arab representation across all companies is minimal, ranging from 1% to 3%.

Total wage costs in government companies rose by about 19% in 2025, paralleling an 11% increase in revenues to 113 billion shekels. Rafael’s revenues surged by 3.8 billion shekels, with operating profits increasing from 934 million to 1.52 billion shekels and net profits from 950 million to 1.35 billion shekels. Aerospace Industries saw revenues grow by 2.8 billion shekels, operating profits rise to 2.6 billion shekels, and net profits reach 2.46 billion shekels. These financial successes pave the way for upcoming stock market listings, with Aerospace Industries valued at around 100 billion shekels and Rafael between 60 and 70 billion shekels. However, a dispute between the Securities Authority demanding transparency and defense companies seeking confidentiality over sensitive deals continues.

The report also notes the stalled sale of ZIM shipping company to German firm Hapag-Lloyd, hindered by the state’s golden share and security concerns due to Saudi and Qatari ownership stakes exceeding 20% each. Overall, government companies’ net profits rose 28% to 9.8 billion shekels in 2025, yet dividends paid to the state totaled only 1.61 billion shekels.