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Good practice Imported

Israel's Mandatory Gender Pay Gap Reporting (Equal Pay Law Amendment, 2020)

Israel · Jerusalem · See the Israel profile · See the Jerusalem profile

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Israel's 2020 Equal Pay Law amendment requires employers with 518+ staff to publish annual gender pay-gap reports by role and rank. First public reports appeared in 2022, but the law carries no penalties, and 2022 data still showed 25-35% gaps by sector.

Israel's Mandatory Gender Pay Gap Reporting (Equal Pay Law Amendment, 2020)

Details

Promoter
Israeli Ministry of Economy and Industry
Period
2020-present
Keywords
labour market regulation, corporate disclosure, gender pay equity

Description

In 2020, Israel amended its 1996 Equal Pay for Male and Female Employees Law to require, for the first time, that large employers actively measure and disclose gender wage gaps. From 1 June 2022, private-sector employers with more than 518 employees must produce three documents each year: an internal report analysing average pay by gender, role and rank; a report shared with employees; and an aggregate report published externally.
The first wave of public reports appeared in June 2022, covering 2021 pay data — the first time many Israeli companies had ever calculated or disclosed their gender pay gap. Complementing this, Israel's Ministry of Finance published its own end-2022 breakdown of wage gaps in the public sector: 32% in government companies, 25% in education, 35% in health, and 31% in local government, and the Central Bureau of Statistics recorded an economy-wide gap of about 32% in 2019 (down from 43% in 1990).
The law has an important limitation: it carries no fines or sanctions for non-compliance, so its force rests entirely on public disclosure and reputational pressure rather than enforcement. Independent legal trackers (Herzoglaw, Trusaic, Mercer) confirm the reporting mechanics and thresholds; whether disclosure alone narrows the gap further remains unproven so soon after the first reporting cycle.

Read the full analysis: https://herzoglaw.co.il/en/news-and-insights/amendment-to-equal-pay-law-reporting-obligation/

Implementation

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