Since the Covid crisis, employers have been reporting to the National Insurance Institute full data about their salaried employees, allowing the calculation each month of salaried employees in Israel. This has provided an opportunity for broad data analyses, which were previously based only on the Central Bureau of Statistics surveys, which counted jobs and not employees. The average wage measured by the National Insurance Institute is higher (NIS 14,657 per month compared with the Central Bureau of Statistics figure of NIS 13,514), and probably more accurate.
The cities where salaried workers earn the most on average, according to the National Insurance Institute, are cities known for their more affluent populations: Herzliya (NIS 22,048), Raanana (NIS 21,982), Modi’in-Maccabim-Re’ut (NIS 21,659) and Tel Aviv (NIS 21,299). The cities at the bottom are mainly haredi and Arab, including Modi’in Illit (NIS 8,002), Bnei Brak (NIS 9,244), Rahat (NIS 9,393) and Nazareth (NIS 9,847). The average wage in Modi’in Illit, therefore, is only about half of the average wage in the entire economy.
The National Insurance Institute has also published the median wage per employee for the first time – a figure that was missing alongside the average monthly wage data. Now, the National Insurance Institute will be able to publish the average and median wages in a relatively up-to-date and fast manner. However, the data only includes employees, completely overlooking the self-employed. In addition, the average and median wages that will be published only include employers who report on their employees and pay National Insurance contributions as required by law.
For example, the average wage in Israel is NIS 14,657 per month. But the median monthly salary, which half of employees earn above and half earn below, stands at only NIS 10,368 – 30% less. With the help of the new National Insurance data, it is also possible to see the division into salary deciles (gross): the lowest salary decile earns less than NIS 2,482 (it also includes soldiers and part-time workers), and the highest salary decile earns over NIS 30,101 per month.
Despite these large gaps, one of the things that best explains the salary gaps in Israel is age: those under 20 earn only NIS 3,032 shekels per month (this includes soldiers), those aged 20-29 already earn NIS 8,434, and the salary reaches NIS 19,472 per month for people age 50-59. At 60 and older, the salary falls slightly to NIS 14,371 per month. Many people move through a wide range of income deciles during their lives, but it is also possible that relatively younger populations on average, such as haredim who earn less on average, also affect the figures.
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The new measurement by the National Insurance Institute based on the administrative data submitted to them has a significant impact on the result obtained in relation to that of the Central Bureau of Statistics. If a highly paid doctor divides work between three jobs, in a health insurance fund, a hospital and a private clinic, each with a lower than average salary, it will lower the average instead of raising it. Therefore, the salary is higher – and probably more accurate, since when we examine the earning potential in the economy, the interesting figure is how much the employee earns from all jobs and not how much each (partial) job is worth separately.
According to the measurement by the National Insurance Institute, in 2024 salaries rose 5.5% from 2023, which represents a real increase in relation to the 3.1% inflation over the year. However, since then inflation has already climbed to 3.6%. Following the outbreak of the war in October 2023, the number of employers fell 3% and the number of employees 2.4%.
Women earn less
The new data from the National Insurance Institute also sheds light on gender gaps. In the lowest 50% there are 46% more women than men, and in the highest 50% there are 48% more men than women. In the top wage 10% there are 174% more men than women. At the start of the war, and at the end of 2024, there was a significant decline in the number of employed people, mainly men, while the average wage of those who remained increased. While this phenomenon at the end of 2023 can be explained by the outbreak of the war, the reason for the similar phenomenon at the end of 2024 is less clear.
In terms of economic sectors, the group that earns the highest amounts is in “electricity, gas, and air conditioning supply” (i.e., workers in the energy industry, including the Israel Electric Company) who earn NIS 30,284 per month on average and in “IT and communications” (including many tech workers) who earn an average of NIS 27,823 per month. In contrast, in the hospitality and food services industry, the average salary is only NIS 6,119 and this includes employees in part-time jobs.
Published by Globes, Israel business news – en.globes.co.il – on June 10, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
