Sources inform ''Globes'' that Minister of Finance Yuval Steinitz today filed an objection to the private member's bill of MK Amir Peretz (Labor) to raise the minimum wage, which the ministerial legislative committee approved yesterday. The bill proposes gradually raising the minimum wage to NIS 4,600 a month from the current NIS 3,850.
The appeal means that the Knesset plenum will not discuss the bill, but it will be on the agenda of the next cabinet meeting.
The bill 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.
The Ministry of Finance has consistently opposed raising the minimum wage. It argues that raising the minimum wage will raise the cost of labor, and will probably lead to layoffs, even by sound companies. The ministry said that an increase in unemployment will lead to higher welfare payments, which will further burden taxpayers. The ministry expressed concern that the measure could even cause the transfer of factories to India, China, and Malaysia, a process that has already begun recently.
Published by Globes [online], Israel business news - www.globes-online.com - on May 24, 2010
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