Complying with Israel equal pay report
This article provides information on legally required pay equity reporting in Israel. It gives an overview of which employers need to take action, what the deliverables are, how to get started, and how to use the PayAnalytics software to help meet the local requirements.
Israel has had equal pay laws since 1996. But their enforcement has been limited. To strengthen pay equity action among employers, a recent amendment to the law adds a reporting requirement. This new requirement increases transparency and helps clarify pay structures for companies and workers. The goal is to motivate companies to earn a reputation for good pay equity that will help them recruit and retain employees.
In this article, we will break down the Israel Gender Pay Gap Reporting and help you to answer four questions:
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Please keep in mind that the articles in the PayAnalytics Help Center do not offer legal advice.
Who does it apply to?
The pay gap reporting requirement applies to all private employers, public entities, trading companies, and NGOs with over 518 employees.
What is the requirement?
Each organization is required to generate three different reports: an internal report, a personal report per employee, and a public report. These reports should be submitted annually.
The three reports contain similar information but are geared toward different audiences. In general, the information should be segmented per type of employee, position, and ranking.
The Internal report includes:
The average salary of each group,
The average pay gap between men and women within each group,
The rate of employees with compensation lower than average for a full-time worker in the group, segmented by gender.
The Personal report per employee includes what group each employee belongs to and what the pay gap is within that group. Essentially, each employee will see their group definition and the associated pay gap.
The Public report includes:
The pay gaps per group,
The rate of employees with compensation lower than the average for a full-time worker in the group, segmented by gender.
Essentially, this report contains anonymized data from the internal report. It often also contains some discussion or elaboration of the organization’s pay equity situation.
How does PayAnalytics help you to meet the requirement?
Preparing your dataset
Note that a dataset containing at least the following data needs to be imported prior to generating the report:
Unique employee ID (mandatory for all datasets),
Gender,
Indicator of full-time or part-time. This should be given on a 0-1 scale with 0=no time and 1=full time,
Segmentation by position and ranking.
Generating the report
The built-in report includes a complete 3-1 Excel report meeting Israel’s reporting requirements.
Once the data upload is completed and the initial data review has been done, you select the dataset and navigate to the Reports section in the navigation bar. Click Generate new report, and underneath Government mandated reports, select the Equal Pay Report (Israel).
Once selected, you will be directed to the report configuration page, where you need to select what columns in your dataset indicate the salary, the FTE value of part-time employees, as illustrated in the following picture:
Report configuration
Once you have completed the configuration, click Generate report and view your report in the Excel spreadsheet.
Which steps should we take next?
Since the generated report includes all three reports (internal, personal and public), there are three actions required for a successful completion:
The organization’s management should keep the internal report on file. The state commission has the right to inspect this report upon request. This is essentially the complete Excel report, possibly with some written explanations for identified differences.
On its own initiative, the employer should deliver the personal report per employee to all employees.
The public report should be made available to the general public. Usually this means posting it on the organization’s website.
Conclusion and next steps
Beyond generating the Israel’s Pay Gap reports in PayAnalytics, you can use other features to further analyze and commit to pay equity:. For example:
You can run a pay equity analysis by creating your compensation model and measuring your pay gaps. To learn more about creating a compensation model, see Creating a compensation model, and to learn more about using the raise suggestions, see Getting suggested remediation actions.
You may also implement the Compensation Assistant into internal processes, to ensure that pay gaps do not come creeping back through promotions and new hire decisions. To learn more about the Compensation Assistant, see Using the Compensation assistant.
Understanding workforce diversity is key to understanding why a raw (unadjusted) pay gap might exist. You may want to check out our Workforce Analytics report and how it helps understand your organization’s changing workforce. To learn more about the alternative insights of Workforce analytics, see Workforce analytics.
If you would like further support around Ireland Gender Pay Gap Reporting, please don't hesitate to reach out for assistance through the Help Center support channel or reach out to our pay equity consultants at clientservicespe@beqom.com.