285,882 public sector employees cost the taxpayers NIS 43.3 billion in 2002, 9% of GDP in that year. The employees’ gross salaries totaled NIS 32.7 billion.
Public sector employers’ costs totaled NIS 9.8 billion, and retroactive payments for retirement amounted to NIS 871 million, Ministry of Finance director of wages Yuval Rachlevsky reported today in the 2002 annual public sectors wages report.
The report shows that despite the government’s efforts, it has not succeeded in halting the rise in the number of employees and cost of their employment in the public sector. The number of public sector employees rose by 27,881 in 1998-2002, an 11% increase.
Costs still rising
Gross public sector wages rose by over NIS 5.7 billion in the period covered by the report, an increase of over 21%. Including all benefits and pension allowances, the cost rose by NIS 10 billion, a 30% increase.
Real public sector salary costs fell in 2002 for the first time, compared with 2001: gross salaries by 3.2%, and salary-related costs by 1%. The decline in 2002 partially offsets the sharp rise in salaries and salary-related costs since 1995. These costs are expected to decline further in 2003-2004, as a result of salary cuts and budget measures.
The number of public sector jobs rose by 3,651 in 2002, a 1.6% increase.
The report again revealed very wide salary gaps between senior and low-level employees. Salaries of senior executives in government corporations amounted to NIS 38,143 per month, compared with only NIS 5,271 for low-level employees in the religious councils a ratio of 7.25 to 1.
Published by Globes [online] - www.globes.co.il - on January 26, 2004