Under the agreement, the minimum wage will be increased gradually, in two phases. The first increase will take effect in July 2011, when the minimum wage goes up 250 NIS to 4,100 NIS a month; the second phase will take effect in October 2012, when the minimum wage goes up another 200 NIS.
The agreement applies to tens of thousands of workers employed by companies that belong to the Federation's Coordinating Office. If Industry, Trade and Labor Minister Benjamin Ben-Eliezer decides to issue an expansion order, it will be extended to close to half a million other workers, particularly in sectors like food services, security and cleaning. Today, some 470,000 workers in Israel earn salaries that are equivalent to, or close to, the minimum wage.