Largest wage increase in 45 years

May 16, 2024

According to the Central Bureau of Statistics (CBS), the average gross hourly wage in 2023 increased by 7%. This marks the largest wage increase in 45 years. Gross earned wages increased more than collective labor agreement (CAO) wages. 

The CBS calculated the gross pay employees received in 2023, including wages of those not covered by a collective labor agreement, which accounts for about a quarter of employees. While there was a 5.9% increase in CAO wages in 2023, the average gross hourly wage rose by 7%. This difference of over 1% is due to various factors affecting actual gross wages annually, such as advancements within pay scales, promotions, or job changes, in addition to negotiated wage increases in CAO’s. 

Minimum wage

The significant wage increase in 2023 also reflects the special increase in minimum wages. Minimum wages were on average 12.9% higher in 2023 compared to 2022. This increase benefited not only those earning the minimum wage but also those slightly above it. 

Gap remains

CBS calculations also reveal that since 2010, the average hourly wages for men increased by 30%, while for women, it increased by an average of 40%. The disparity between average hourly wages for men and women has been decreasing over time, largely due to women achieving higher levels of education. In 2023, the average hourly wage for women was 12% lower than that of men. This is a decrease from the 19% gap observed in 2010.