Headline: Private Sector Workers to Receive Increase in Recovery Fees After 8 Years
Subheadline: Expansion Order Signed to Extend Bonuses to Entire Economy
Date: [Current Date]
In a historic move, private sector workers in Israel will finally see an increase in recovery fees after an 8-year drought. The expansion order, which extends the bonuses received by public sector employees, was signed today in the presence of Labor Minister Yoav Ben-Zur, Histadrut Chairman Arnon Bar-David, and Business Sector Presidency Chairman Dobi Amitai.
The expected annual increase for a salaried employee will be a minimum of NIS 200. The recovery fee is calculated based on years of seniority at the workplace, meaning veteran employees could receive a double amount of approximately NIS 400. This expansion will benefit approximately 3 million employees in the business sector.
While the recovery fees are typically paid in the summer months, employees who have already received payments this year according to the old calculation will also be paid retroactively with the supplement. This new development is a significant step in reducing the disparity between recovery fees in the private and public sectors.
However, there is still a considerable gap between the two sectors. The recovery fees are supposed to be adjusted annually based on inflation, but until now, only public sector employees had received bonuses. Previous updates were postponed due to offset agreements, political crises, and conflicts between various business sector organizations. The court ruled that the Histadrut, a labor federation, has the authority to sign expansion orders, including the recovery fee increase, without the consent of certain organizations.
The signing of this expansion order signifies a breakthrough in the “bottleneck” that has hindered the implementation of various expansion orders in the economy. Another order, compensating workers who were absent from work during Operation Dawn, was signed simultaneously.
During the signing ceremony, Bar-David acknowledged that there are more challenging expansion orders still to come, many of which will require the involvement of the Ministry of Finance. The Histadrut has expressed its hopes for releasing more orders in the coming months, specifically mentioning plans to increase the wages of catering workers and compensate military personnel involved in the “Defense and Arrow” operation held last May.
This long-awaited increase in recovery fees for private sector workers is a positive step towards fairer compensation and benefits across the economy. The signing of the expansion order sets a precedent for future negotiations and advancements in workers’ rights.
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