The Knesset Labor and Social Affairs Committee on Tuesday approved the raising the minimum wage in Israel to 5,300 shekels.

Finance Minister Moshe Kahlon said that "Raising the minimum wage to 5,300 shekels is a direct continuation of our work to narrow gaps and strengthen the working population.”

"The state of the economy is good, and in our term we will make sure that all sectors enjoy it. We will continue to cooperate with workers and employers in social processes that benefit Israeli citizens and the Israeli economy, " he added.

While most economists believe that hikes in the minimum wage cause increases in unemployment, particularly among teenagers in the work force, as demand for workers decreases with the rise in the minimum wage, MK Elie Elalouf (Kulanu), chairman of the Labor and Social Affairs Committee, said both workers and employers would benefit from the move.

"We have carried out a social move that strengthens the weak in our society. This is the implementation of the poverty report we agreed upon in coalition agreements when we joined the government. This is good news for employees, employers, and Israeli society."