The Ministry of Finance and the Teachers' Union announced: A final outline for the salary cut has been reached

After several days of disruptions: The Ministry of Finance and the Teachers' Union announced this morning (Thursday) that they have reached a work outline that will take effect after amending legislation and a collective agreement for all teaching employees in the civil service, employed within the framework of 'New Horizon'.

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According to a joint statement by the Teachers' Union and the Ministry of Finance, the new outline brings important and significant news to the teaching public, which involves changing legislation and changing the reduction mechanism stipulated in the law to the mechanism agreed upon with the Teachers' Union.

In light of these agreements, civil service teaching staff employed under the 'New Horizon' framework will see a significantly lower reduction than the reduction that was supposed to occur.

The outline will include the following details:

▪ The wage reduction rate (determined by law for 2025) will decrease from 3.307% to 0.95%.

Meaning:

• According to the law: The reduction was supposed to be between about 300 NIS (for a new full-time teaching employee) and about 860 NIS (for a veteran full-time teaching employee) each month in 2025.
• According to the new outline: The reduction will range from approximately 86 NIS (for a new full-time teaching employee) to approximately 270 NIS (for a veteran teaching employee) each month in 2025.
  Notwithstanding the above, the amount of the reduction in December 2025 will be 0.95% plus the amount that should have been paid that month. This amount will be refunded through the reduction component in the January 2026 salary. This means that the payment for school hours in December 2025 will be reduced and refunded in the following month.
  Unlike the outline published on 4.5.25 – the clause freezing promotion in rank for those eligible for promotion for four months has been dropped. This means: teaching employees eligible to receive a rank will receive it as a series.

▪ Clothing: Cancellation of indexation of the clothing allowance for 2025 only, and a one-time reduction of NIS 91 from this payment. This means: in relation to the allowance paid in 2024 in the amount of NIS 2,405, in 2025 an allowance of NIS 2,314 will be paid. In 2026, the amount of clothing allowance will be updated for indexation for both 2025 and 2026.

▪ Seniority promotion: Payment for seniority promotion will be frozen for a period of 4 months only (from September 2025–December 2025). Starting in January 2026, payment for this promotion will be paid. In any case, rights dependent on seniority will not be affected by this freeze.

▪ The new "school" benefit: The implementation of this benefit, from the 2022 agreement, which was supposed to be implemented for the first time on September 1, 2025 and apply to an average of 3 to 4 teaching employees in a school, will be postponed to September 1, 2026.

▪ Combination and Split Compensation: The cost framework allocated for combination and split compensation for 2016 and one-third of the cost framework allocated for combination and split compensation for 2017 are applicable.

During 2016, the parties will hold a dialogue in an attempt to find alternative sources for the framework that was frozen as mentioned.

What else is important:
▪ There will be no harm to rewards and grants.
▪ Pension and provident fund provisions will not be affected.
▪ The fixed salary for employees who retire on a budget pension will not be affected.
▪ In 2026, the reduction will be at a rate of 1.2% in accordance with the law and as determined for all public sector employees.

Additionally:

▪ Addition of 2 vacation days to the education system's vacation schedule: one day this year (5775) on Lag BaOmer (16.5.25). Another day next year (5776) on Lag BaOmer (5.5.26).

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