New collective agreement at the Ministry of Defense: a compensation model to replace the premium system
The new agreement introduces fixed salary additions recognized for pension purposes, non-absence incentives, and excellence grants for eligible staff. The Ministry of Defense Director General stated that the ministry is transitioning to a stable and modern model, replacing fragile premiums with solid, pension-protected salary components.
Following lengthy negotiations, the Histadrut, the Ministry of Finance, the Ministry of Defense, and employees' representatives have signed a special collective agreement effective until August 2030.
The agreement replaces the incentive pay mechanism ("premiums"), which had been in use at the Ministry of Defense for decades, with fixed salary additions recognized for pension purposes, non-absence incentives, and excellence grants for eligible rankings, while adapting the salary structure to the current requirements of the Ministry of Defense. The agreement increases salary components recognized for social and pension rights and provides solutions for specific groups, including senior-level employees and students.
The agreement includes a new percentage salary addition in place of fixed premiums. Administrative, academic (MAHAR), engineering, and technical staff will receive a fixed salary addition of 14.3%, while social workers will receive additions ranging from 10.73% to 15%. Annual excellence grants will be awarded to 25% of eligible employees each year. Furthermore, a monetary addition was agreed upon for senior staff in ranks 42-44 and above, alongside a monthly incentive for non-absence due to illness and target-based grants for students.
"This agreement is part of the Ministry of Defense's strategy to empower human capital, with an emphasis on the management echelon as a leader of change, innovation, and excellence," said Ministry of Defense Director General Maj. Gen. (res.) Amir Baram. "After decades, we are replacing outdated salary mechanisms with a stable, fair, and modern model that replaces fragile premiums with solid, pension-protected salary components. The security establishment is receiving strengthened and motivated employees today."
Arnon Bar-David, Chairman of the Histadrut, stated: "The employees of the Ministry of Defense stand at the forefront of national action. This agreement does historical justice. We have eliminated expired compensation methods and created a stable, progressive model that ensures the pension future of our employees. The Histadrut is proud to provide them with solid backing and economic security."
Effi Malkin, Commissioner of Wages at the Ministry of Finance, added: "The agreement cancels incentive pay, given the ongoing difficulty in adapting it, a concern previously raised by the State Comptroller. We have introduced base salary additions, non-absence incentives to reduce sick leave, and excellence grants. This agreement settles long-standing disputes with the Ministry of Defense through innovative solutions, and I welcome it."
