Israel pay data reporting law guide

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Introduction

Israel amended its Male and Female Workers Equal Pay Law in 2020 which introduced pay reporting requirements, effective June 1, 2022.

Employers with 519 or more employees are required to generate internal pay gap reports. They must also publicly publish gender pay gap reports.

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Israel Reporting Requirements

Who Needs to Report?

Employers with 519 or more employees must comply with the requirements listed below. Whether an employer meets this threshold is a determination that must be made annually.

What to Report?

Employers must prepare (1) an internal report; (2) a report to be provided to each employee; and (3) an external report that will be published.

The internal report includes:

  • The groupings of the employees and the names of those groups including the types of employees included in those groups;
  • Average salaries of employees in those groups including salary gaps by gender, separated by full-time and part-time employment;
  • The rate of employees whose salary is lower than the average salary in the workplace, separated by gender;
  • The rate of employees who were paid a supplement to minimum wage pursuant to an agreement by gender (if any applicable employees).

The report to to employees is based on the internal report and includes:

  • The group of employees that employee belongs to;
  • The positions or ranks within that group;
  • The salary gaps within that group.

The public report is also based on the internal report and includes:

  • The average salary gaps among the employee groups without disclosing the names of those employee groups, separated by gender, full-time, and part-time employment;
  • Data in percentages regarding the rate of employees employed by the employer whose salary is lower than the average salary at the workplace, as well as the rate of employees who are paid a supplement to minimum wage pursuant to an agreement or arrangement, all by gender.

How the employer divides the employee groups is up to the employer’s discretion.

Where and When to Report?

Regulatory Filing

Relevant employers must report on the above mentioned requirements as follows:

Employee Reports:

Employers are required to provide an employee report based on the annual internal report every year.

External Posting:

An employer is required to post the external report publically. If the employer has a website, this public posting must include posting it on the employer’s website.

Deadlines and Cadence

The reports must be prepared to provide the internal report, employee reports, and external report by June 1 every year.

Employment Equity Standards

Israel's equity standard is detailed in its Male and Female Workers Equal Pay Law .

The law stipulates that male and female employees working for the same employer in the same place are entitled to equal pay (and any other compensation) for the same, equivalent or substantively equivalent work.

The Risks of Non-Compliance

The law authorizes a Commissioner or a Commission to order an employer to provide the internal report which they were required to prepare. However, there are no sanctions, fines, or other penalties currently associated with non-compliance regarding the law's reporting requirements.

Employers could be liable for equal pay claims under Israel's pay equity standard.

How Can Trusaic Assist with Israel Equal Pay Law Compliance?

Trusaic's Workplace Equity product suite can help every employer in Israel to comply with gender pay gap reporting requirements, and monitor progress objectives and corrective measures where required.

1. Comply - Use Trusaic's GPDR solution to complete required reporting by compliance deadlines:

Applicability Determination: Perform an accurate assessment of your applicability, according to jurisdictional specific definitions and regulatory frameworks so you can understand your reporting obligations across the globe.

Deadline Management: Prepare ahead of time with project timelines, timely notifications, and reminders, to keep you on track to meeting jurisdictional deadlines.

Expert Legal Guidance and Support: Benefit from the expertise of our trusted pay equity attorneys, so you understand your compliance requirements across a diverse global regulatory landscape. Receive world-class customer support, including assistance throughout the compliance process.

Streamlined Data Extraction: Collect the necessary data for analysis and submission with a simple click of a button; powered by certified data integrations with the world's largest HCM, HR and Payroll platforms, including Workday, SAP, UKG and ADP. Provide data through Trusaic's Workplace Equity platform, a SOC 2 Type II and GDPR-compliant tool for data transmission.

Data Quality Assurance: Trusaic performs data validations to ensure your collected data and information aligns with the standards and definitions provided by each jurisdiction.

Compliant Report Outputs: Take away the burden of reporting by effortlessly generating outputs containing necessary compliance information.

Reporting Checklist: Follow step-by-step guidance on where, when and how to report to any jurisdiction's regulatory body, as well as your required internal disclosure and public posting obligations.

2. Correct - Use PayParity and OpportunityParity to understand, explain and resolve pay disparities:

Risk Assessments: Stay aware of any potential exposure to any government audit or litigation. Our cross-functional team of data scientists, statisticians, and government regulatory compliance experts have rigorously worked to reverse-engineer the calculations that will be used by jurisdictions to estimate pay disparities, so you can prepare in advance.

Understand your Pay Gaps: Leverage Trusaic's pay equity software solution to explain your pay gaps so you can understand the root causes and safeguard from equal pay claims and legal action.

Resolve Pay Disparities: Make pay adjustments where applicable so you can eliminate pay disparities and show improvements in your reported pay gaps from one year to the next.

Identify Barriers to Professional Growth: Ensure workforce diversity and equity with hiring, promotion, retention, and opportunity analytics using opportunity equity software solution.

3. Communicate - Use Trusaic's Workplace Equity Solution to communicate narratives and share salary ranges with confidence:

Workplace Equity Narrative: Communicate the sources of your pay gaps, progress objectives, and corrective measures to employees and internal stakeholders with Trusaic's Workplace Equity product suite. Show data-backed progress in your pay gaps over time.

Salary Range Explainability: Use Salary Range Finder to establish and post competitive and equitable pay ranges to confidently comply with pay transparency laws.

Mitigate Risk of Recurrent Pay Disparities: Ensure new hires receive fair pay offers with the use of external labor market data and internal pay equity analytics to reduce unplanned and expensive pay remediations.

Sign up for PayParity by July 31, 2024
and receive OpportunityParityTM at no additional cost

Sign up for PayParity by July 31, 2024 and receive OpportunityParityTM at no additional cost