C. O. L. Raise Set at 29.6 Percent

The cost-of-living increment to be paid to wage-earners in Israel as of October has been set at 29.6 percent of salaries (up to a salary ceiling of IL 22,000). The increment, paid periodically, is intended to help workers face inflation. The 29.6 percent rate, agreed upon this week by the Histadrut and the employers federation, is equivalent to 80 percent of the price rise recorded nationwide since June.

Until now, the periodic c.o.l. Increments have compensated for only 70 percent of the rate of inflation. The 80 percent rate was agreed to after strenuous negotiating between the Histadrut, the government and the private employers. (The inflation rate current in Israel at the moment tops 80 percent annually.)

The increment agreement will mean that a worker earning IL 22,000 or more will receive an additional IL 6512 with the October pay check. In fact, though, some of this increment has already been anticipated wage earners have been receiving IL 1300 a month on account since July, and a further five percent on account as of their September salaries.

LARGEST C.O.L HIKE IN MEMORY

The 29.6 percent c.o.l. hike is the largest in memory, and has been brought about by the unprecedentedly high rate of inflation, which some economists fear may yet hit the triple digit mark this fiscal year.

The government has indicated that it would be prepared to make the c.o.l. increments linked 100 percent to the rate of inflation, instead of 80 percent as at present. But this would be conditional upon a nationwide labor agreement pegging or restraining wage rises for the next two years.

The Histadrut leadership under Secretary General Yeruham Meshel has not been enthusiastic, so far, over this package-proposal. Wage contracts in most sectors are due to lapse April 1980 and, unless there is a sign of significant economic recovery on the national level and a serious decline in the rate of inflation, the unions are sure to press for major increases in salaries and fringe benefits.