Law on the Participation of Public Service Employees and Officeholders in Steps to Stabilize the State's Fiscal Situation in 2025 and 2026 (Temporary Provision) (Amendment No. 2), 5785-2025

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Public-sector employers other than the state, whose employees are not organized in a representative organization, may reduce components of their employees' wages in 2025. The reduction may cover wage components not included in the determining base, such as recuperation pay or a clothing allowance. Total reductions over 2025 may not exceed the amount that would have been reduced under the original law. By June 2026, the employer will calculate the difference between what was actually reduced and what would have been reduced under the original law: if too much was reduced, the difference is returned to the employee; if too little, the balance is deducted the following month. The monthly reduction, together with other deductions under the Wage Protection Law, may not exceed a quarter of the employee's wage that month; any excess is deducted in later months. Such a reduction arrangement must be identical for groups of employees with similar employment terms and wages. Every reduction arrangement requires approval from the Wages and Labor Agreements Commissioner at the Ministry of Finance, or from the Accountant General and Budgets Commissioner, depending on the employer type. The employer will inform employees immediately after approval, and the arrangements will be published on the Ministry of Finance website. This amendment applies to 2025 only.