MINIMUM WAGE LAW

5747-1987

Definitions.
1. In this Law -
"representative employee organisation", "general collective agreement" and "extension order" have the
same respective meanings as in the Collective Agreements Law, 5717-1957;
"the average wage" has the meaning assigned to this term in section 1 of the National Insurance Law
(Consolidated Version) 5728-1968;
"the Minister" means the Minister of Labour and Social Affairs;
"the minimum wage" per month means 47.5 percent of the average wage as on the 2nd Nisan, 5747 (1st
April, 1987), updated and increased under this Law;
"the daily minimum wage" means the twenty-fifth part of the minimum wage in respect of an
employee employed during a 6 day working week, and the minimum wage dived by 212/3, in respect
of an employee employed during a 5 day working week;
"the hourly minimum wage" means the 186 part of the minimum wage.
Right to minimum wage.

2.

(a) An employee of the age of eighteen years or over (hereinafter referred to as an "employee")
who is employed in a full-time position as used in his place of employment is entitled to receive
from his employer a wage not less than the minimum-wage-per-month, the daily minimum wage or
the hourly minimum wage, as the case may be.

(b) An employee employed in a part-time position is entitled to a partial minimum wage to be
calculated in accordance with the part-time ration of his position.

(c) Where an employee is absent from work, the minimum wage to which he is entitled under
subsection (a) shall be reduced in proportion to the time of his absence. However, if he is entitled to
receive payment for the time of his absence under any law, contract of employment, collective
agreement, extension order or other collective arrangement or under provisions binding as a benefit
fund (any of these hereinafter referred to as "the arrangement"), the payment shall be in accordance
with the provisions of the arrangement.
Calculation of wage for the purposes of minimum wage.

3.

(a) The wage to be brought in account for the purposes of section 2 shall be the wage paid by an
employer to his employee in an ordinary workday as is customary at his place of employment.

(b) The following wage components shall come into account for the purposes of section (a):
(1) basic wage or combined wage;
(2) cost-of-living allowance if not included in combined wage;
(3) fixed addition paid to the employee in consequence of his employment.
However, there shall not be brought into account a family allowance, a length-of-service allowance,
a shift-work allowance, a thirteenth salary, grants on an annual basis and reimbursement of
expenses, including subsistence, board and lodging and traveling expenses paid by the employer.

(c) Repealed.

(d) Where the wage of an employee is not paid in accordance with the components mentioned in
subsection (b)(1) and (2) or with part of the, the wage shall for the purposes of subsection (a) be
calculated in accordance with the ordinary wage without additions.
Increase of minimum wage.

4. The minimum wage shall be increased in accordance with the rate of a cost-of-living allowance, a
price increase compensation, or any other addition to the wage, fixed by a general collective agreement
and paid to most of the employees whose terms of employment are regulated by collective agreements.
The increase shall come into force on the date of the coming into force of the addition in question.
No reduction in minimum wage.

5. In no case shall the amount of minimum wage be reduced in consequence of its updating under this
Law.
Publication of minimum wage.

6. The Minister shall publish in Reshumot a notice of -
(1) The updated minimum wage on 1st April of any year;
(2) the minimum wage for each 1st of April not being a determining day;
(3) Repealed.
Right of claim.

7. A claim by an employee for payment of a minimum wage may be filed with the Labour Court by
the employee or by the representative organisation of employees at the place of employment in
question or where there is no such organisation of employees, by the organisation of employees of
which the employee is a member.
Protection of Complainant.

7A. An employer shall not take any actin prejudicial to an employee's pay, promotion at work or
working conditions, and shall not dismiss him from work because of any complaint or claim submitted
by the employee in respect of a breach of any of the provisions of this Law or by reason of the
assistance that he has afforded to another employee in connection with such complaint or claim.
Increased compensation.

8. The Labour Court may require an employer to pay to the employee increased wage delay
compensation as it may deem just in the circumstances of the case.
Mandatory injunction or restraining order.

8A. Notwithstanding the provisions of Section 3 (2) of the Contracts (Remedies for Breach of
Contract) Law 5731-1970, the Labour Court may, in an action for breach of the provisions of Section
7A, grant a mandatory injunction or restraining order, if it concludes that an award of damages alone
would not be just; in considering whether to grant such an order or injunction the Court shall take into
consideration, inter alia, the effect that such an order may have on labour relations at the work place
concerned.
Restriction to claim.

9. Notwithstanding anything provided in any agreement, the determination or updating of the
minimum wage under this Law shall not by itself be a ground for a claim for an increase of the wage of
an employee beyond the minimum wage or for the maintenance of a wage differential by reason of the
determination or updating of the minimum wage.
Average wage.

10.

(a) For the purpose of calculating or increasing a wage linked, by law or agreement, to the
average wage, there shall not be brought into account changes on the average wage which arise
from a difference between the minimum wage, as on the 2nd Nisan 5747 (1st April, 1987) and the
minimum wage which was paid to most employees immediately before the coming into force of
this Law or which arose from a change in the minimum wage due to its updating.

(b) The Minister and the Minister of Finance shall publish in Reshumot a notice of changes in the
average wage which are not to be brought into account for the purposes of subsection (a).
Saving of rights.

11. This Law, except section 9 and 10, shall add to, and not derogate from, the right of an employee by
virtue of law, collective agreement, collective arrangement or contract of employment.
Prohibition of stipulation.

12. A right of an employee under this Law cannot be made conditional or waived.
The State as employer.

13. For the purposes of this Law, the State shall be treated like any other employer.
Penalties.

14. An employer who does not pay to his employee a minimum wage under this Law shall be liable to
6 months imprisonment.
Liability of actual employer.

14A. Where an offence under this Law has been committed by a manpower contractor, any person
who actually employed the employee shall also be guilty of such offence, unless he proves that the
offence was committed without his knowledge and that he took all reasonable steps to prevent the
same; in this Section, "manpower contractor" - is as defined in the Employment of Employees by
Manpower Contractors Law 5756-1996.
Responsibility of managers.

15. Where an offence under this Law is committed by a body corporate, every person who at the time
of its commission is an active director, a partner - other than a limited partner - or a clerk thereof and
responsible for the matter in question shall also be guilty of the offence unless he proves that it was
committed without his knowledge and that he took all reasonable steps to ensure compliance with this
Law.
Work of youth.

16.

(a) The Minister may, with the approval of the Knesset Labour and Social Affairs Committee,
enact, by regulations, provisions as to the application of this Law to an employee who has not yet
completed his eighteenth year. Such regulations may be general, or according to categories of
employees or employers.

(b) Regulations under subsection (a) may prescribe a minimum wage at a lower rate than that
provided in this Law and may prescribe different rules that those prescribed in this Law for the
calculation of the minimum wage, including rules as to wage components to be brought into
account.
Protected undertakings.

17. The provisions of this Law shall apply to physically, psychically or intellectually handicapped
employees employed in protected undertakings to the budget of which the State Treasury contributes,
whether nor not such employees have completely their eighteenth year, if the Minister of Labour and
Social Affairs so prescribes by regulations with the approval of the Knesset Labour and Social Affairs
Committee either generally or for particular categories of cases. The regulations may prescribe a
minimum wage lower than that prescribed by this Law.
Implementation and regulations.

18.

(a) The Minister is charged with the implementation of this Law and may make regulations as to
any matter related to its implementation.

(b) The Minister shall, generally or for particular categories of cases, with the approval of the
Knesset Labour and Social Affairs Committee, make regulations -
(1) as to the payment and modes of calculation of minimum wage to an employee whose wage
is not paid on a monthly, daily or hourly basis;
(2) as to the payment of a minimum wage to an employee whose wage is paid partly on a
monthly, daily or hourly basis;
(3) prescribing additional or supplementary provisions as to the payment and calculation of
the minimum wage.

(c) The Minster may, after consultation with the employee organisation to which a majority of
organised employees in Israel belong, and with employer organisations which, in his opinion, are
representative and concerned with the matter, an with the approval of the Knesset Labour and
Social Affairs Committee, prescribed supplementary provisions concerning the calculation of daily
and hourly minimum wage rates, and he may in this case prescribe provisions that differ from those
in this Law.
Amendment of Labour Courts Law.

19. In the Labour Courts Law, 5729-1969, the words "Minimum Wage Law, 5747-1987" shall be
added at the end of the Second Schedule.
Commencement.

20. This Law shall come into force on the 2nd Nisan, 5747 (1st April, 1987).
Temporary provisions.

21.

(a) Notwithstanding the definition of "minimum wage" in section 1, the minimum wage shall be -
(1) on the date of the coming into force of this Law, an amount of 525 new shekalim;
(2) on the 8th Tishri, 5748 (1st October, 1987), an amount of 551 new shekalim;
These provisions shall not derogate from the provisions of section 4.

(b) The provisions of section 10 shall apply also to the change in the minimum wage that will
occur under subsection (a)(2).
Temporary provision (amendment of 5757)
Notwithstanding the content of the definition of "hourly minimum wage" in Section 1, the hourly
minimum wage for the period from the date of the commencement of this Law and until the 25th of
Nissan 5757 (30th June 1997) shall be the minimum wage divided by 191.