The Public Sector Pay System in Israel
This report analyses the pay system in Israel’s public sector, and provides recommendations
to align it with the strategic priorities of the government. It recommends ways to
simplify job classification and better match pay to market rates, particularly in
areas where the public sector has trouble competing for talent. It also identifies
opportunities to better reward performance, productivity and job responsibilities.
In Israel, no pay reform is possible without the agreement and active collaboration
of public sector unions, and so the second part of this report focuses on public sector
labour relations and makes recommendations to improve the functioning of the collective
bargaining process in Israel’s public sector. This report contributes to the ongoing
work of the OECD’s Public Employment and Management working party, to support the
implementation of the Recommendation of Council on Public Service Leadership and Capability.
Available from July 26, 2021