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Salaries in Israel Rise; Civil Servants Get Increase Retroactively

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Cost-of-living allowances rose today by 8 per cent on all basic salaries. Civil servants who are paid once a month will have their salaries boosted as of July 1. The increases will range from 16 pounds to 40 pounds ($4 to $10) monthly for each worker. There will be a ceiling on increases on salaries over 500 pounds monthly.

The Government’s planned compulsory savings scheme, intended to “soak up” extra purchasing power to avoid inflation, will not go into effect this month as planned, since Parliament has not yet ratified legislation authorizing such forced savings.

Israel’s Bar Association today protested sharply against an income tax law amendment proposed by the Treasury Department, requiring lawyers here to divulge information about the income and foreign currency holdings of their clients. Dr. Joshua Rotenstreich, president of the Israel Bar Association, warned the Treasury that, if it persists in advancing its proposal, the organized attorneys will fight the draft measure both in Parliament and before the public.

The Treasury had proposed that attorneys could submit to arbitrators such data as they wish to be kept in confidence, so as to insure against the Treasury’s intrusion on the privacy of clients. However, the lawyers oppose any disclosures, even if they are kept confidential, insisting that their clients are entitled to “inviolate protection” against “government prying through lawyers.”

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