The amendment to the Equal Pay for Men and Women Workers Law, initiated by MK Etty Atia (Likud) and approved by the Knesset in August 2020, is expected to take effect tomorrow. The law will require companies to disclose the pay gap between men and women employed by them.
According to data from the Central Bureau of Statistics, in 2018 the average monthly salary for a woman in Israel was thirty-two percent less than the average salary for a man. The pay gap between men and women increases as the average wage in the profession increases.
Under the new law, private companies employing over 518 workers will be required to publish an annual report on the wage gap between workers as early as 2021.
The purpose of the law is to prevent discrimination by introducing transparency of employers to employees’ wages and reducing wage gaps between the sexes. In addition, the law will encourage discrimination lawsuits.
MK Atia said: “The phenomenon of wage discrimination between men and women is outrageous and disturbing and must pass from the world. I am glad that we have finally reached a point where we can use legislation to reduce the gaps. The very obligation to publish the report will create deterrence against employers and improve the image of equal companies. “