Suggests to apply in govt employees too
The Israeli government unanimously approved the decision, presented by Finance Minister Israel Katz, to voluntarily reduce the salaries of elected officials by 10% on Monday night.
Katz might suggest further cuts in the salaries of civil servants which might save the state up to NIS 5 billion per year.
The finance minister confronted Economy Minister Amir Peretz on Monday night after Peretz called on the government to adopt the “German Model” of unemployment benefits. Saying that “this is the human-focused economy I always speak of.”
The salaries of elected officials are linked to the average salary in the country.
Interior Minister Arye Deri called on the cut to be even larger 20% and to include local council leaders.
Bankruptcy is rising in Israel with a 48% increase in the number of businesses closing down in June.
At least 464,000 workers are currently in quarantine, costing their employers at least NIS 3 billion.
(Agencies inputs)
