The average salary cost among the banking system's 48,000 employees reached NIS 26,700, compared with NIS 26,600 in 2006, a record year for bank salaries, a "Globes" survey reveals. This includes annual bonuses, which are performance-related at most banks, but excludes costs for early retirement schemes, and privatization grants. The average bank salary cost has risen 15% since 2003.
In keeping with its slogan, "Being first is what counts," employees at Bank Hapoalim (LSE: 80OA; TASE: POLI) topped the salary tables in the banking system yet again, with a salary cost of NIS 28,600. In second place came Israel Discount Bank (TASE: DSCT) employees with a salary cost of NIS 26,700. Discount Bank employees will remain among the sector's most highly paid in the sector in the coming years, following the signing of a recent pay agreement with the bank which will lift salaries at the bank by an average 10% in 2008-2009.
Employees at Bank Leumi (TASE: LUMI) came third with a salary cost of NIS 26,200, followed by Union Bank of Israel (TASE: UNON) where the salary cost of employees reached NIS 25,600, and First International Bank of Israel (TASE: FTIN1;FTIN5) with a salary cost of NIS 25,200. Employees at Bank of Jerusalem (TASE: JBNK) were in sixth place with a salary cost of NIS 24,400, with Mizrahi Tefahot Bank (TASE:MZTF) ranked last with a salary cost of NIS 24,200. The average salary cost at Mizrahi Tefahot has fallen, probably as a result of an intake of new employees on lower rates of pay.
The salary cost in the banking system represents 60% of its operating expenditure and is equal to its entire operating income. Salary costs in the banking systems totaled NIS 15 billion in 2007.
Published by Globes [online], Israel business news - www.globes-online.com - on April 27, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008