Minimum Wage

 

An employee is entitled to receive a salary which is no less than the minimum wage. The right of minimum wage cannot be waived or made conditional.

 

The following payments are not considered part of the minimum wage: a family allowance,  a seniority allowance, a shift work allowance, a measured, agreed, fixed or collective premium, a thirteenth salary, grants on an annual basis and reimbursement of expenses, including subsistence, board and lodging and travel expenses paid by the employer.

 

The Full Rate of Minimum Wage is as Follows: july 2008

 

3850.18 NIS-- per month for employees whose salary is calculated on a monthly basis.

 

20.70 NIS--per hour for employees whose salary is calculated on an hourly basis.

 

 

177.70 NIS--per day—for employees whose salary is calculated on a daily basis,  employed  5 days a week, but not less than the minimum wage as calculated according to the hourly minimum wage.

 

154.00 NIS--   per day- for employees whose salary is calculated on a daily basis,  employed  6 days a week, but not less than the minimum wage as calculated according to the hourly minimum wage.

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Who is Eligible for the Full Minimum Wage?

 

An employee who is 18 years of age or over, employed in a full time  position (43 hours per week).

 

Minimum Wage for a Worker in a Part Time Position:

 

The Minimum wage of an employee in a part time position is calculated according to the full Minimum wage, relative to the percentage of his or her position.

 

Minimum Wage for an Employee who is Absent from Work:

 

Minimum wage for an employee who is partially absent from work  will be calculated based on the Minimum Wage  rate,  reduced according to the numbers of  hours  of his absence. However, if the employee is entitled to payment for the time of his absence under any law, contract of employment, collective agreement, extension order or arrangement, the payment for the hours of absence will be in accordance with the provisions of the arrangement.

 

Adjusted Minimum Wage for a Handicapped Employee:

 

An employer  of a handicapped employee may apply to the Director General of the Ministry of Industry, Trade and Labour for a permit to pay a "reduced minimum wage" to such handicapped employee. An employer who was granted such a permit, may pay the handicapped employee the adjusted minimum wage set out in the Permit, which is figured according to the Minimum Wage Regulations.  

 

Minimum Wage for Youth and Apprentices:

 

For youths and apprentices (up to the age of 18) employed full time (40 hours a week and 173 hours a month) the Minimum Wage will be figured as follows:

 

The Employee                           Percentage of           Monthly Minimum     Hourly Minimum

                                                   Minimum Wage         Wage                           Wage

_____________________________________________________________________

A worker under 16 years of age-          70%                2,695.13 NIS                15.58

A worker who is 16 years old –            75%                2,887.63 NIS                16.69

A worker who is 17 years old-              83%                  3,195.65      NIS                18.47 

An apprentice                                         60%                1,310.11 NIS                13.35 

 

When calculating the minimum wage for a youth or an apprentice, only the  basic wage or the combined  wage will be taken into consideration, as well as cost of living allowance, if not included in the combined wage..

 

Criminal Penalties for Non-Payment of Mminimum Wage:

 

Nonpayment of minimum wage by an employer is a criminal offence punishable by one year in jail or a fine of up to 202,000 NIS.

 

Concerning  an employee of a manpower contractor : if the  direct employer received written notice that the employee asked  the  manpower contractor in writing to pay minimum wage and he  did not do so, and the direct  employer did not pay the sum owing to the employee within 21 days of receipt of the notice, the direct employer will also become  liable for a criminal penalty of  a jail sentence or a fine of  up to half of the fine which the manpower contractor is liable for. (Written notice from a Labour Inspector, or a lawsuit filed  by the employee against the manpower contractor  and the  direct employer,  are acceptable in place of written notice from the employee).

 

In addition, non-payment of minimum wage is an administrative offense for which the penalty is a fine of   5,000 NIS for each month of non-payment, for each employee, or a fine at the rate of 200 NIS per day for each day, for an employee employed on a basis other than monthly, or for a worker employed on a monthly basis who worked less than 12 days.

 

When the employer is a corporation, an active director can also be indicted for this offence, as well as a non limited partner and the clerk responsible for the matter in question, unless they prove that they  were unaware of the offence and that they took all reasonable steps to comply with the Minimum Wage Law.

 

Additional Consequences of Non-Payment of Minimum Wage:

 

Non-payment of minimum wage to an employee employed in a project carried out  for a public authority, is a breach of the agreement  between the employer and  the public authority.

 

In addition,  a person or corporation convicted of  an offence regarding minimum wage, is ineligible  to contract with a public authority for a period of one year from the day of the conviction, and if convicted of more than one offence – within 3 years from the day of the last conviction.

 

 

Filing a Civil Suit:

 

An employee may elect to file a civil suit in the Labour Courts for the minimum wage due from his employer. In such a suit, the employee is eligible for increased compensation (damages) for the delay in payment.

 

An employee of a manpower contractor may also file suit against his direct employer, if he served the direct employer with written notice that  he  demanded payment of minimum wage from the manpower contractor and the wage was not paid, and the direct employer did not pay the minimum wage due, within  21 days of receiving such notice. (Written notice from a Labour Inspector, or a lawsuit filed  by the employee against the manpower contractor and the Actual Employer,  are acceptable in place of written notice from the employee).

 

Presumption of Non-Payment of Minimum Wage.

 

In the following cases, it is presumed that the employer failed to pay minimum wage, unless he proved otherwise :

 

-The employer did not give the employee a pay slip or did not keep a written record of his salary.

-The employer did not present registration of work hours.

-The employer did not specify the hourly rate of wage of the employee in the pay slip.

 

Obligation to Display Notice:

 

As of 24/1/03, a summary of the major rights of the employee must be displayed  prominently in the workplace by the employer. Failure to display such a notice is a criminal offence for which the  penalty  is a fine of  9,600 NIS.

 

In case of a breach of Minimum Wage Law  you may notify:

Jerusalem:  8, King David St. Tel: 02-6662046 .Fax: 02-6240471.

Tel- aviv: 53, Derekh Shalma (Salameh) Tel: 03-6223109. Fax: 03-6828677.

Haifa:  7-9, Pal-Yam St. (Zim Building) Tel: 04-8606718 Fax: 04-8606735

Beer Sheva: Noam Building, 21, Shazar St..P.O.B 5138 Tel: 08- 6264050 Fax: 08-6264055.