Wages Commissioner: Some people won’t have a pension
Israel's Wages and Labor agreements Commission Efraim Malkin strongly opposes a proposal to cancel compulsory pension contributions for workers under 40. Malkin warns that while the move would increase monthly paychecks slightly, it could severely reduce long-term post-retirement pensions and strain the National Insurance Institute.
Why it matters
Pension reforms directly impact the financial security of millions of workers and highlight broader economic debates over mandatory savings versus short-term wage increases.
Israel’s Wages and Labor agreements Commission Efraim Malkin staunchly opposes the proposal by National Economic Council chair Avi Simhon to cancel compulsory pension contributions for under-40s. Such a move would add NIS 500 on average to employees’ monthly paychecks but would cut the average monthly post-retirement pensions by NIS 2,000.
The National Economic Council says, the that the pension in Israel, which includes a National Insurance old-age allowance of over NIS 2,500 is relatively high compared to wages. Senior officials at the Ministry of Finance are also pushing to reduce contribution rates, though Malkin expresses reservations.
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