Israeli cabinet approves minimum wage hike

The Israeli cabinet on Sunday approved a bill to raise the minimum wage in the Jewish state, after a year-long struggle by Israel's largest labor union.

The new hike will take the minimum wage up to 5,000 shekels (1,270 dollars) from 4,300 shekels (about 1,090 U.S. dollars).

The Knesset (Israeli parliament) is expected to give a final approval to the bill in a fast-track voting procedure on Wednesday.

Last week, the Israeli Ministry of Finance and the Histadrut, Israel's labor federation, signed an agreement to raise the minimum salary by 700 shekels (about 180 dollars) in three increments over the next two years, starting April.

Israeli Prime Minister Benjamin Netanyahu hailed the decision as "reflecting our desire to help all parts of society." In a statement released by his office Sunday, Netanyahu said he is "pleased that it is being done in agreement with employers and workers."

Histadrut Chairman Avi Nissankorn said in a text message sent to Xinhua that "this decision will effectively help to close social gaps and minimize inequality in Israel. In less than three months 700,000 families will start feeling the difference."

In November, Nissankorn threatened to go on a general strike if the government will not accept their demands.

But in December, the government changed its tune as Netanyahu announced he would support raising the minimum wage. Endit