The average gross monthly salary cost of Israel's 49,380 bank employees - one of the best paid groups in the county - was NIS 27,600 in 2010, the fifth consecutive year that "Globes" has examined their salary cost. The average bank salary cost in 2010 was 7% higher than the average salary of NIS 25,750 in 2009. In 2007, the first year that "Globes" examined bank salary costs based on analysis of the banks' financial reports, average bank salary cost was NIS 26,700. The results exclude expenses for early retirement and privatization grants.
The average bank salary cost has risen 18% since 2003. The main reason for the increase is the mechanism of salary creep in collective labor contracts (the "automatic pilot"), and generous labor contracts signed in the past few years. The aggregate salary cost at the banks rose to a record NIS 16 billion in 2010, 8% more than in 2009.
Bank Hapoalim (TASE: POLI) tops the rankings, with an average monthly salary cost of NIS 29,700 in 2010. Union Bank of Israel (TASE: UNON) is in second place, with an average annual salary cost of NIS 337,000, 10.5% more than in 2009.
Israel Discount Bank (TASE: DSCT) is in third place with an average monthly salary cost of NIS 27,800, and an average annual cost of NIS 334,000. Bank Leumi (TASE: LUMI), the most profitable bank, is in fourth place, with an average monthly salary cost of NIS 27,300 and average annual cost of NIS 328,000.
Bank of Jerusalem (TASE: JBNK) is in fifth place, with an average monthly salary cost of NIS 25,400. First International Bank of Israel (TASE: FTIN) and its subsidiaries is in sixth place with an average monthly salary cost of NIS 25,200, and Mizrahi Tefahot Bank (TASE:MZTF) is in seventh and last place, with an average monthly salary cost of NIS 24,600.
Bank Hapoalim and its subsidiaries had 13,605 employees at the end of 2010, including 383 employees overseas. 60% of the workforce are women. Bank Leumi had 13,490 employees at the end of 2010,, including 9,725 employees in Israel. Discount Bank and its subsidiaries had 10,221 employees, Mizrahi Tefahot Bank and its subsidiaries had 5,252 employees, First International Bank and its subsidiaries had 5,173 employees, Union Bank had 1,227 employees, and the Bank of Jerusalem had 412 employees.
Published by Globes [online], Israel business news - www.globes-online.com - on April 11, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011