The agreement on the increase in the minimum wage to $1,000 by the end of the next government’s term has already became a source of amusement in economic ministries in Jerusalem. Officials have been reported as claiming that the $1,000 target will be reached sooner than expected, without costing employers anything.
This will happen as a result of a 4% appreciation of the shekel against the dollar, which will increase the minimum wage by $34, giving it a value of NIS 3,457 as of April, equivalent to $763 instead of $729 only prior to the April 1 increase.
The shekel-dollar rate has so far fallen 4.5% from NIS 4.741/$ to NIS 4.53/$, a drop of NIS 0.21 on the dollar representative rate. The shekel is expected to strengthen further to a high of NIS 4.45/$ following a weakening of the US currency on international markets. This rate will give a minimum wage of NIS 3,457 a value of $777, an increase of $48.
A minimum wage of NIS 3,835 in June 2007 will have a value of $846 at a representative rate of NIS 4.53/$ and $862 at a representative rate of NIS 4.45/$.
Published by Globes [online], Israel business news - www.globes.co.il - on April 25, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006