Changes to working hours and the minimum wage in Israel coming in 2026

Big changes are on the way for workers and employers in Israel. Starting in 2026, updates to both minimum wage rules and working-hour limits will reshape how people get paid and how long they’re expected to work. While the headline focuses on higher pay, the deeper story is about how wages, time, and labor protections are being recalculated across the economy.

Whether you’re clocking in as an employee or managing payroll for a business, these updates will affect how earnings are calculated, especially for part-time workers and those in the public sector. The changes also revive broader debates about work-life balance, productivity, and how Israel compares to other developed nations.

Here’s what’s changing, when it starts, and what it could mean in everyday terms.

As of April 1, 2026, Israel’s minimum wage will officially rise. Full-time workers earning minimum wage will receive ₪6,443.85 per month, while the hourly minimum will increase to ₪35.40. That marks a 3.3% increase compared to the previous rate, adding roughly ₪196 per month to the paychecks of minimum-wage earners.

This adjustment isn’t random. Israeli law links the minimum wage to the national average salary, requiring it to equal at least 47.5% of that figure. As wages across the economy rise, the legal floor moves with them. The 2026 increase reflects updated economic data as of January 1, 2026, and is meant to keep earnings aligned with inflation and living costs.

For many workers, this change offers modest but meaningful relief. For employers, it requires careful planning and updated payroll systems. Understanding your daily hours is essential to confirm that you’re being compensated accurately. You can use a calculator tool to check how many hours you work per day and its equivalent compensation.

The wage increase will affect hundreds of thousands of workers across Israel. Anyone currently earning the minimum wage will see their income rise automatically once the new rate takes effect. That includes employees in industries where pay scales are tied directly to the legal minimum, such as cleaning services, security work, food service, and institutional catering.

Public sector workers will also feel the effects, as wage supplements and allowances often rise in tandem with minimum wage changes. For households with two minimum-wage earners, the increase could add more than ₪4,700 per year in combined income.

Hourly and part-time employees stand to benefit as well. Since pay is calculated strictly by time worked, even small increases to the hourly rate can make a noticeable difference for families relying on flexible or reduced schedules.

The new minimum wage officially kicks in on April 1, 2026. From that date forward, employers must ensure no eligible worker earns less than ₪6,443.85 per month or ₪35.40 per hour, depending on how their role is structured.

In the public sector, monthly wages are calculated based on 173.33 hours rather than the private sector standard. Employers are required to implement all payroll changes promptly and ensure wage updates are reflected no later than the ninth day of each month.

Failing to comply could result in penalties, audits, and legal consequences, making early preparation essential.

Minimum wage in Israel isn’t a flat number. It depends directly on the time spent on the job, making understanding working hours just as important as knowing the wage rate itself.

In the private sector, a standard full-time schedule is based on 186 hours per month, while in the public sector, the baseline is slightly lower. For part-time workers, wages are calculated by multiplying the hourly minimum by the exact number of hours worked in a given month. This system aims to ensure fairness, but it can create confusion for workers trying to verify their paychecks. 

Beyond pay, Israel is also preparing to adjust its broader labor framework. Policymakers are increasingly focused on redefining the limits of regular working hours, with renewed discussions around adopting a standard 40-hour workweek.

Currently, many Israeli employees work more than that threshold, particularly in competitive industries. Supporters of reform argue that shorter weeks could improve productivity, reduce burnout, and better align Israel with other developed economies. Critics worry that reduced availability could hurt small businesses and increase labor costs.

The challenge lies in balancing economic competitiveness with worker well-being, especially in sectors where long shifts are the norm.

Government workers will be among the first to feel structural changes. Beginning in September 2025, updated rules for public sector employment will begin rolling out, including revised definitions of standard schedules, overtime eligibility, and compensation models.

These adjustments are meant to ease the transition ahead of the broader 2026 wage update. They also aim to standardize expectations around the number of hours public employees work each month, reducing inconsistencies across ministries and agencies.

For civil servants, this could mean clearer boundaries between work and personal time — though implementation will vary by department.

Supporters of the reforms say the updates bring Israel closer to modern labor standards. Higher wages improve financial security, especially for low-income workers. Clearer rules around hours of work may help reduce exploitation and burnout, while encouraging healthier work habits.

On the other hand, employers face higher payroll costs and administrative challenges. Small businesses may struggle to absorb wage increases without raising prices or reducing staff. There are also concerns that stricter limits on working time could reduce flexibility for employees who rely on longer shifts to boost earnings.

The transition period will likely be bumpy, especially in industries that depend on extended schedules.

Internationally, Israel has long ranked among countries with relatively long working hours. Many European nations, including Germany and France, already operate closer to a 35- to 40-hour workweek, with stronger overtime protections and higher hourly wages.

In contrast, countries like the United States offer fewer federal limits, leaving working hours largely up to employers. Israel’s current reforms position it somewhere in the middle — aiming for balance without fully adopting the European model.

The debate highlights a global question: should productivity be measured by time spent at work or by results?

To stay compliant, employers should review contracts, update payroll systems, and ensure all staff are paid correctly under the new rules. Tracking the number of hours worked accurately will become even more important as wage and hour rules evolve.

Businesses should also prepare for questions from employees about scheduling, overtime, and pay calculations, particularly as reforms around working hours gain momentum.

The coming changes mark a meaningful shift in Israel’s labor landscape. With higher wages, evolving standards, and new expectations around time on the job, both workers and employers will need to adapt.

For employees, the reforms offer higher pay and the promise of better balance. For businesses, they bring new responsibilities and costs — but also the opportunity to build healthier, more sustainable workplaces.

As Israel moves toward these updates, one thing is clear: how people work, earn, and measure their time is changing, and 2026 will be a turning point.

This article was written in cooperation with Tom White