Public employment and management

The Public Sector Pay System in Israel - Launch version


The Public Sector Pay System in Israel  - Launch version

This report examines how Israel’s Ministry of Finance can use the public sector wage bill more strategically. The goal is to develop a more flexible, high-performing and outcome-oriented public sector workforce. The report finds scope for (i) reviewing the principles underpinning public sector pay, job classifications and allowances, and (ii) developing a more proactive and constructive approach to collective bargaining to facilitate this.


More specifically, the report provides the following key recommendations to the government of Israel: 


  • Rationalise the system of allowances
  • Identify key competences to align pay with market levels for certain profiles
  • Simplify the job classification system
  • Empower line managers to engage in collective bargaining
  • Create institutions for alternative dispute resolution
  • Limit the scope and timing of strike action to encourage more effective negotiation



Cover - The Public Sector Pay System in Israel