# Mekorot Signs Five-Year Collective Agreement With Wage Increases Above 20%

> Mekorot signed a five-year collective agreement with cumulative wage increases above 20% and NIS 13,000 signing bonuses per employee.

- Published: 2026-10-14T19:14:41+00:00
- Section: Business
- Author: News Desk
- URL: https://newsforagent.com/news/2026-10-14/mekorot-five-year-collective-agreement
- Source: [The Jerusalem Post](https://www.jpost.com/business-and-innovation/article-911709)

## Key takeaways

- Mekorot signed a five-year collective agreement with cumulative wage increases of more than 20% and signing bonuses totaling NIS 13,000 per employee.
- The agreement creates professional advancement tracks across all levels and core positions at Mekorot for the first time.
- Mekorot reported Q2 net profit of NIS 243 million, up from NIS 62 million a year earlier, while H1 profit fell to NIS 110 million from NIS 244 million.

Mekorot, Israel's national water company, signed a five-year collective agreement with its employees on Monday that includes cumulative wage increases of more than 20% and signing bonuses totaling NIS 13,000 per employee, [The Jerusalem Post](https://www.jpost.com/business-and-innovation/article-911709) reported. The agreement was signed by the Histadrut labor federation, the Histadrut Maof division, Mekorot management and the company's workers' organization.

## What the Mekorot Agreement Includes

The agreement also includes increased pensionable pay, an excellence bonus equivalent to one month's salary, an expanded employee welfare budget and targeted wage increases for field workers responsible for operating and maintaining the country's water infrastructure. For the first time in Mekorot's history, the agreement establishes professional advancement tracks across all levels and core positions in the company. It also introduces a new salary-range model that raises minimum pay levels and expands opportunities for wage progression, allowing employees who have reached the salary ceiling in their current track to continue advancing.

Energy and Infrastructure Minister Eli Cohen said the agreement would help preserve Mekorot's role as Israel's national water company, following its response to recent emergencies, including an algae bloom incident at sea and the shutdown of desalination facilities. "The agreement with the company's employees is an important component in preserving and consolidating the company as Israel's national water company," Cohen said.

Histadrut chairman Arnon Bar-David said the agreement reflected Mekorot's transformation into a technology-driven company. "I am happy and proud of this important agreement, which adds another significant component to Mekorot's development from a low-tech company into a high-tech company," he said.

Mekorot chairman Moshe Shimoni said completing the collective agreement had been one of his priorities since taking office, following approximately two years of work on the terms. Mekorot CEO Danny Sofer said the agreement reflected the company's commitment to its employees, particularly field workers responsible for maintaining a reliable water supply. Shimon Idan, chairman of the Mekorot workers' organization, said the agreement was first and foremost intended to improve conditions for employees and recognize their contribution to the company.

## Mekorot's Recent Deals and Results

In August 2026, the Nicosia District Local Government Organisation and Mekorot signed a Memorandum of Cooperation to exchange expertise in sustainable water resource management, Philenews reported. That month, Mekorot reported a sharp rise in second-quarter net profit to NIS 243 million, up from NIS 62 million a year earlier, while first-half profit fell to NIS 110 million from NIS 244 million, The Jerusalem Post reported. In July 2026, Mekorot and Google Cloud, in cooperation with Commit, completed a joint innovation hackathon focused on developing AI-powered digital solutions for water supply, operations, service and consumption, The Jerusalem Post reported.

## What Comes Next for Mekorot

The agreement is intended to improve employee retention and recruitment while strengthening the company's ability to maintain operations during routine and emergency situations, as Israel's water sector prepares to address growing challenges in the coming years. Omer Hazan, deputy senior official responsible for wages at the Finance Ministry, said the agreement would give Mekorot additional management tools to promote professional excellence and recruit and retain employees.

## Companies in this story

- Mekorot · website: https://www.mekorot-int.com

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