40% of Israelis earn minimum wage

by Haim Bior
http://www.haaretz.com
May 6, 2004

Some 39.2 percent - 942,000 - of Israel's workers earn the 
minimum wage salary of NIS 3,335, according to figures from 
the economic division of the Federation of Israeli Chambers of 
Commerce. In addition 45.3 percent of the self-employed force - 
89,000 people - gross no more than NIS 3,482, equivalent to 
half the average gross wage in the economy.

ICC economists say that at this level, wage-earners pay NIS 157 
per month to the National Insurance Institute and the health tax, 
about 4.5 percent. 

Furthermore, income tax of up to NIS 55 is deducted, according 
to family status. The self-employed pay NIS 220, or 6.3 percent 
on average for the same income level.

In view of this data, ICC President Uriel Lynn called on Finance 
Minister Benjamin Netanyahu to cancel the above fees for anyone 
grossing less than half the average wage.

Eliminating this burden "would be social justice for the weak 
percentiles, push forward the reforms in direct taxation ... 
and increase the purchasing power of those same levels in need."

Lynn estimated that the cost of canceling these NII, health tax, 
and income tax payments amounts to NIS 2 billion per year. 
"However, the benefit to the economy and society would be of 
much higher value."