Salary Increase and Special Grants: SAP Employees in Israel Secure New Agreement
A new collective agreement signed between the Histadrut and SAP management covers 800 employees, ensuring enhanced retirement conditions, remote work regulations, and a 4.5% increase in welfare budgets.
The Histadrut, SAP management, and the workers' committee signed a new collective agreement on Monday, renewing all existing labor contracts within the company for another three years. The agreement applies to approximately 800 employees in SAP's laboratories and sales division in Israel.
The new contract preserves all previous rights, including salary increase mechanisms, employer-funded health and dental insurance, and job security clauses. It also introduces adjustments to reflect the changing landscape of the Israeli high-tech sector.
Key additions include:
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A new efficiency procedure: Any future restructuring must begin with voluntary retirement and is subject to strict quota limits.
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Enhanced retirement benefits: Employees are entitled to a special grant of up to 33 salaries, age- and family-based bonuses, and a three-month notice period under full employment terms.
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Remote work policy: Employees are now officially permitted to work from home two days per week.
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Welfare budget increase: A 4.5% boost in funds allocated for employee welfare.
This agreement follows a dispute last February, when SAP management unilaterally attempted to cancel collective agreements. Following the Histadrut's intervention and a formal labor dispute, the Ministry of Labor's Labor Relations Unit ruled that the cancellation was unlawful.
Yaki Khalutzi, Chairman of the Cellular, Internet, and High-Tech Union at the Histadrut, stated:
"The agreement signed today guarantees SAP employees in Israel stability and protection for the coming years. We have reached a balance that addresses both the company's needs and the employees' job security."
Gad Ravid, Chairman of the workers' committee at SAP, noted:
"In a period of uncertainty for the high-tech industry, the stability provided by a strong workers' committee is a real asset. Employees will enjoy real protection and certainty regarding their future."
The negotiations were led by Yaki Khalutzi, Alon Weinbern, Gad Ravid, Izet Bar, Avi Rokach, and attorneys Gilad Zabida and Amir Basha. SAP was represented by Pietro Jurato, Moran Malmud, and attorney Haya Herman of Herzog Fox.
