New pension expansion order for the construction industry

According to an agreement signed between the Israel Builders Association and the Building and Wood Workers' Federation, pensions will increase by 1.2% in the construction and infrastructure industry, as well as for renovation workers, by increasing the employer's pension contribution from 6.5% to 7.1% and by increasing the employee's share from 6% to 6.6% of his salary.

The aforementioned agreement entered into force as of June 2018, with the signing of the pension expansion order by the Minister of Labor and Social Affairs.

At the same time, it was agreed between the parties that the shortening of the workweek in the economy, for which an extension order was issued, would not apply to the construction industry, since an agreement was already signed in 2015 between the association and the Histadrut, according to which it was decided that the workweek in the industry would be shortened to 42 weekly work hours, as is now determined for the entire economy.

This fundamental change is added to other burdensome changes that have been imposed on employers in the industry in recent years and will likely be added in the future, about which we will continue to update our clients here, accordingly.

Link - Expansion order in the construction sector, infrastructure, public works and renovations dated October 28, 2015,

 Link - Addendum to the expansion order in the construction sector, infrastructure, public works and renovations, dated March 26, 2018,

 Link - Expansion Order in the Construction, Infrastructure, Public Works, and Renovations Sector - Appendix from Manofaim 2017