The Histadrut and the coordinating committee of private employers and enterprises have signed a new wage agreement on cost of living payments for the next two years, and the Finance Ministry, which had been dragging its feet on requests for special compensation for last month’s massive 20.6 percent rise in the C.O.L. index, finally fell into line.
Under the agreement reached last Thursday, all employers will receive compensation for the April increase in two payments. May salaries to be paid on June 1, will increase by 12 percent, with another 4.5 percent the following month.
Henceforth, for the next two years, the previous system of C.O.L. adjustments every three months will be replaced by monthly increases if the C.O.L. rise in any month is more than 12 percent. If the increase in less that 12 percent, the increase will be paid when a 12 percent rise has been accumulated.
Up to the 12 percent limit, the C.O.L. increase will be at the rate of 80 percent of the index increase, and 90 percent if the monthly inflation rate is 25 percent a month.
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