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Israeli Employees Will Not Get Allowances for Rise in Cost of Living

The Mapai-Achdut Avoda Alignment formally endorsed a proposal today under which cost of living allowances paid to Israeli workers in addition to basic salaries will not be increased this month despite a rise in the cost of living index estimated at between five and six percent over the past six months. Normally, the allowances would be increased every six months following such a rise in the index.

Under the proposal, employees earning up to 1,400 pounds ($467) monthly would be compensated for the higher cost of living by increasing old age pensions and family allowances administered by the National Insurance Institute. The present cost of living system would remain in force through 1967.