Israelis are notorious for their openness in talking about money, including sharing their salaries with anyone who asks – and sometimes even without being asked. Should you share your salary with coworkers? And what if you signed a contract saying that you aren’t allowed to?
Legal right to discuss salary
Employees in Israel are allowed to discuss their salaries with each other. The employee’s salary is not a trade secret of the employer, but rather personal information that belongs more clearly to the employee than to the employer.
On the other hand, the employer does not have the right to share information about the employee’s salary without the employee’s consent. No one else at your workplace should know how much you make unless you share it.
In a ruling by the Nazareth Regional Labor Court, the court ruled that an employee who took a new job and told his new employer how much he was making (while still working at the first company) was not in violation of his contract, even though it stated that he wasn’t allowed to disclose his salary.
The logic behind the ruling was that a ban on an employee disclosing his salary undermines his ability to seek alternative employment with higher pay, as salary expectations are a central part of employment negotiations. Such a ban harms free market competition and can be argued to infringe on the employee’s freedom of expression.
(Note that this ruling was issued by the Regional Labor Court and does not constitute binding legal precedent, since it has not yet been addressed by the National Labor Court or the Supreme Court.)
Should you share your salary?
There are pros and cons to sharing your salary with coworkers. The main advantage of sharing your salary is that you can then find out how much others are making. This information can serve you in salary negotiations and in checking whether you are being paid fairly. While you can’t go to your bosses and tell them you want a raise because your coworker is better paid, you can get an idea what the employer is willing to pay and use that information to your advantage.
When you’re looking for a new job, knowing what other people in similar roles are making helps you negotiate your own salary. Letting the potential employer know your current salary and asking for a higher rate can be a successful strategy.
On the other hand, sharing salaries can cause discontent at work, lowering your job satisfaction or causing resentment in others. And just because you live in Israel doesn’t make you culturally Israeli. If discussing your salary openly feels like an invasion of privacy, feel free to keep your counsel.
Keep in mind that revealing your current salary in a negotiation at a new job can sometimes limit the offer you get, since the potential employer can choose to offer only slightly more than you were previously making, instead of what you’re actually worth to them.
Sharing your salary is ultimately a personal choice, and there’s no one-size-fits-all answer. Legally in Israel, you have the right to discuss your salary with coworkers or disclose it to a new employer, even if your contract says otherwise. Doing so can give you valuable information for negotiating fair pay and exploring new opportunities. However, it can also create tension at work or limit offers from potential employers if not approached strategically. The key is to weigh the benefits against the risks and decide what feels right for you in your specific situation.
