Treasury plans vacation pay cut in public sector

"Ma'ariv" reports that the Ministry of Finance wants to cut the vacation pay of public sector employees, which could save NIS 1.3 billion.

Hebrew daily "Ma'ariv" today reported that one of the measures that the Ministry of Finance is considering for dealing with the budget deficit is to cut the vacation pay of public sector employees. In view of the NIS 10 billion hole in the 2013 state budget, the ministry wants to cut the vacation pay of public sector employees, which could save NIS 1.3 billion. The vacation pay for each public sector employee is between NIS 2,100 and NIS 5,800.

Cancelling vacation pay is not the only extreme measure planned for cutting the budget. The Ministry of Finance also proposes salary cuts and other measures to save billions of shekels next year.

The Ministry of Finance said in response, "This is speculation. No decision has been made on the details of the cut."

Published by Globes [online], Israel business news - www.globes-online.com - on September 9, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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