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JPost.com - Banking & Finance | The Jerusalem Post

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Who are big winners from the shortening of the workweek? | The Jerusalem Post
LIAT RON · 2026-07-08 · via JPost.com - Banking & Finance | The Jerusalem Post

A comprehensive study by the Finance Ministry, the Histadrut, and the Joint examined the effects of transitioning to 40 weekly hours in the public sector.

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A comprehensive study by the Finance Ministry, the Histadrut, and the Joint examined the effects of transitioning to 40 weekly hours in the public sector
A comprehensive study by the Finance Ministry, the Histadrut, and the Joint examined the effects of transitioning to 40 weekly hours in the public sector
(photo credit: SHUTTERSTOCK)
ByLIAT RON

When Dolly Parton sang "9 to 5" in 1980, she described the work model that characterized the Western world for decades, and especially the United States: A fixed workday that begins at 9:00 a.m. and lasts eight hours in the office, and one axiom that was considered almost indisputable – the more hours worked, the more is accomplished.

A study examining the results of shortening the workweek challenges this concept. According to its findings, it is possible to work fewer hours, not only without harming productivity but even improving it. However, this gain is not distributed equally: Some of the employees enjoy additional leisure hours, while others pay the price and are forced to stay at work to complete tasks in their place.

The transition to a shortened workweek in Israel was carried out gradually. Already in 1990, the transition to a five-day workweek in the business sector instead of six was anchored in an extension order. In April 2018, the workweek in the economy was shortened from 43 to 42 weekly hours. The final phase took effect during 2024, when the workweek in the public sector was gradually shortened to 40 weekly hours.

In the study, conducted between 2021 and 2023 by the Key Impact research institute, in cooperation with the Labor Arm, the Wage and Labor Agreements Department at the Finance Ministry, the Civil Service Commission, the New Histadrut, and the Joint organization, data from dozens of public sector organizations were examined. The researchers combined tens of thousands of computerized attendance reports with in-depth surveys among thousands of employees and managers to examine the impact of transitioning from a 42-hour to a 40-hour workweek.

The data show that the volume of working hours indeed decreased, and simultaneously an improvement in labor productivity was recorded: Some 43% of the employees reported an improvement in the quality of their work, and 34% testified to an increase in the quantity of outputs they produce. Managers also identified the trend – 33% of them reported an improvement in the performance quality of employees since the workweek was shortened. According to the researchers, the explanation lies in the improvement of employee well-being: A less tired employee, who manages to better balance work and personal life, arrives more focused and efficient during working hours.

A positive impact was also recorded outside the workplace. About 70% of the employees and about 61% of the managers expressed high or very high satisfaction with the reform, and reported a decrease in fatigue and exhaustion levels at the end of the workday. Some 53% of the employees said the reform allowed them to spend more time with their family members and children: Some 43% utilized the freed-up time for rest, health, or hobbies, and about a third dedicated it to personal and professional development or more convenient management of household chores.

The study was based not only on employee perceptions or questionnaires, but also on tens of thousands of computerized attendance reports, which made it possible to check in practice how many hours employees worked before and after the reform. Among full-time employees, an average decrease of about 8.5 actual working hours per month was recorded, which is about 1.95 hours per week – almost the target set in the reform. About 78% of employees and managers experienced an actual shortening of at least one hour per month, and in most cases, the shortening exceeded 4 monthly hours.

Another finding refutes one of the main concerns that accompanied the move. Contrary to trends recorded in other countries, shortening the workweek in Israel did not lead to an increase in overtime: In the absolute majority of organizations, the volume of overtime remained stable and even decreased.

Workers in an office
Workers in an office (credit: SHUTTERSTOCK)

From an economic standpoint as well, the employees were not harmed. The monthly hour volume for a full-time position in the public sector dropped from 182 hours to 173.3 hours, while the salary was maintained. As a result, the value of the working hour increased, and employees who continued to work the same volume enjoyed an increase in gross salary, alongside the increments set in the framework agreements signed during that period.

The data also point to a certain reduction in gaps between women and men. Since women in many cases worked fewer hours even before the reform, mainly due to family constraints, those who benefited primarily from the actual shortening were the men. Among men, an average decrease of 11.79 working hours per month was recorded, compared to an average decrease of 6.26 hours among women: Thus, the working hour gaps that previously existed were narrowed.

However, alongside the positive results, the report also points to the organizational price of the move. Mid-level and senior managers were hardly able to shorten their workday, and due to the responsibility for the continuation of activities, many of them continued to work long hours beyond the new standard. At the same time, about 17% of the employees reported a moderate increase in workload or in the number of working hours. In some cases, employees who left early actually transferred tasks to their colleagues, who were forced to stay to complete the work in their place. Since the overtime quota in organizations is limited, some of those employees stayed beyond the standard hours without receiving additional financial compensation for it.

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