Minimum wage will be increased to 23.12 NIS an hour beginning October 1, 2012, which will result in a minimum monthly salary of 4,300 NIS instead of the current 4,100 NIS. Regarding youths under 16 who work, the minimum monthly wage will be 3,010 (70% of the regular minimum) for 16-year-olds 3,225 NIS (75% of regular minimum) and 17-year-olds 3,569 NIS (83% of regular minimum).
While elected officials are waving the flag of economic justice, workers compelled to live on minimum wage feel the additional 200 NIS a month will not even permit them to keep up with the cost of living, yet alone bringing home additional money.
(YWN – Israel Desk, Jerusalem)
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One Response
The effect of the minimum wage is to increase unemployment. It helps some individuals who get more money, but hurts others who are unable to find work. Since many of our community may be entering the job market with less than desirable skills, they will be hurt since they may be unable to produce enough added value to justify hiring at the higher rate. Remember that if the minimum wage is “X” units per hours, and the employee can only produce something less than “X” units per hour, the employer will chose to save money by not hiring.