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Aug 23, 2020

Proposed Law: publicize gender pay gap annually

MK Chava Eta Atia (Likud) has proposed a law that would require any company that employs 518 employees or more to publicize an annual report detailing the differences between salaries of male and female employees. 

Every year the employer will have to tell each employee the relevant information of salary differences for his or her sector and department and field of employees. That is in addition to publicizing the information. 

The proposal has passed the initial vote and has now passed the vote in committee and will be prepared for further and final readings.
source: Srugim

518 is an awfully specific number. I wonder where they got that from. My assumption would be how the size of a company is categorized, with 518 employees being the measure for a large company. Even if that assumption is correct, I still wonder how 518 became that number.

This law, if it passes, will likely create pressure for companies to bring down the gender pay gap and even things out, so it is a good thing.

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  1. Sorry, don't agree that this is a good thing.

    Most companies pay workers according the the market rate. If they were really able to get away with paying women less for the same work, any company looking to save costs would make a point of only hiring women.

    There is a gap in the average wage between men and women, but it is largely because (for example) many women with small children are unable to work overtime, or unable to travel when required or need extra sick days to deal with children.

    In fact, when you compare single men and women there is very little pay gap, if any at all.

    If companies are required to publicize the wage gap, they should also be required to list other more relevant factors, like the number of sick days employees too, the amount of overtime they were prepared to work, the number of years experience in the filed, or whether they were prepared to relocate or travel when the opportunity arose.

    Looking at only one factor (gender of employee) does not tell you anything about fairness in hiring practices.

  2. actually in israel the gender gap works the opposite way, men get paid less for equivalent work, all other factors being equal. the reason is that women get "points" (and therefore a higher base salary) if they have children under 18, but men can not get those points.

    1. the points are for calculating the taxes. a woman pays less taxes because of the points (and that's only if she has children). the actual salary is not affected by the points. She might take home more net salary than a male making the same salary, but supposedly a woman and man doing the same job, the woman will earn a lower salary than the man.


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