The ministerial legislative committee will discuss on Sunday a bill to gradually raise the minimum to NIS 4,600 a month, from the current NIS 3,850. The private member's bill by MK Amir Peretz (Labor) proposes raising the minimum wage in three hikes: to NIS 4,100 three months after the bill is passed; to NIS 4,350 three months later; and to NIS 4,600 after 15 months.
Peretz aides said that Labor Party support for the bill was assured, but in view of objections by the Ministry of Finance, government support was in doubt.
The Ministry of Finance says that the negative income tax model was the right tool for dealing with low salaries.
Peretz said, "Belying the awful forecasts which claimed that the rise in the minimum wage would create an economic crisis, and increase the number of the unemployed, the exact opposite occurred. The rise in the minimum wage increased economic activity and created jobs."
Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2010
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