Pay excesses exist in some 10.5% of entities in Israel's public sector, according to the report for 2017 by the enforcement unit of the Wages Commissioner's Department in the Ministry of Finance presented by Wages Commissioner Kobi Bar-Natan to the Speaker of the Knesset. According to Bar-Natan, the enforcement unit's activity saved the state NIS 309 million in 2017 alone, and has led to a total actuarial saving of some NIS 6 billion since the unit was set up in 1997. It is headed by Etty Gabbai-Morali, senior deputy to the wages commissioner for enforcement.
The annual report released by the Ministry of Finance yesterday indicates a decline in the extent of pay excesses. When the enforcement unit was set up in 1997, excesses were found in 62% of the reporting entities. In the latest report, the figure is down to 10.5%. The worst pay excesses were found in supported entities, which include non-profit organizations and institutes of higher education, but even here the scope of the phenomenon has shrunk substantially: only in 17% of supported entities were pay excesses found, which compares with 33% the previous year.
The figures for savings of public money also indicate a decline in pay excesses: in 2017, the enforcement unit's activity saved NIS 309 million, of which NIS 11 million were actually repaid to the Ministry of Finance while the remainder was an actuarial saving. In 2016, the total saving was NIS 1.3 billion, of which NIS 21 million were actually repaid to the public purse.
Published by Globes, Israel business news - en.globes.co.il - on November 27, 2018
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