Israeli state-owned companies showed record revenues in 2025, but the report revealed salary gaps and family ties

Why the State Companies Authority Report Became a Public Signal

At the end of June 2026, data from the annual report of the State Companies Authority for 2025 was published in Israel. At first glance, it is an ordinary economic document: revenues, profits, salaries, dividends to the state, personnel structure, and plans for the possible listing of some large companies on the stock exchange. But in fact, the report once again raised one of the most sensitive issues of the Israeli economy: how fairly are state companies organized, who earns the most in them, and why does a noticeable share of family ties remain in some structures.

According to the report, 2025 was a record year for Israel’s state companies.

Their combined revenues reached 113 billion shekels, and net profit increased to 9.8 billion shekels compared to 7.6 billion shekels in 2024. Profit growth was about 28%, and dividends declared by companies in favor of the state increased to 1.61 billion shekels compared to 1.19 billion shekels the previous year.

The main driver of growth was defense companies, primarily RAFAEL and Israel Aerospace Industries / “Taasiya Avirit.” This is an important detail because the revenue growth here is related not only to ordinary economic activity but also to war, defense orders, technological demand, and the changing strategic reality around Israel.

For the Israeli audience, this report is important not only because of the large numbers. State companies operate in areas directly related to the country’s daily life and security: defense, electricity, water, transport, ports, and infrastructure. These are not abstract corporations “somewhere in the market,” but structures where the state remains the owner or a key player. Therefore, society has the right to ask how money is distributed, how people are appointed, and why the gap between different groups of workers sometimes seems too large.

NAnews — Israel News notes: the report does not only talk about “rich executives.” It shows a more complex picture. Some state companies became more profitable due to increased defense orders and technological exports, others remain infrastructure monopolies or near-monopolies, and within this system, there are high salaries, strong unions, family ties, and weak representation of women and the Arab sector in leadership positions.

Where in Israel’s state companies are the highest salaries

The most noticeable part of the report is the salary data.

The State Companies Authority included a more detailed section on salaries and personnel structure in the annual report for the first time, making the picture clearer for public discussion. Such data existed before, but they were published less conveniently and were not always perceived as a unified picture of the public sector.

Among ordinary workers, that is, not top executives, the highest average gross salaries were recorded in the defense company RAFAEL. The average salary of an ordinary worker there was about 22.7 thousand shekels per month. In second place is “Taasiya Avirit” / Israel Aerospace Industries with an indicator of about 19.8 thousand shekels.

Next are “Hevrat HaHashmal” / Israel Electric Corporation — about 18.4 thousand shekels, “Mekorot” — about 18 thousand shekels, and the port of Ashdod — about 17.6 thousand shekels. These are salaries that are noticeably higher than the average level in many other sectors of the Israeli economy, especially considering stability, social conditions, and additional employment elements in large state structures.

For executives, the figures are significantly higher. In RAFAEL, the average salary of top managers was about 85.1 thousand shekels per month, and in Israel Aerospace Industries — about 81.6 thousand shekels. In the Israel Electric Corporation and “Mekorot,” it is about 69 thousand shekels per month.

According to Mako, the average salary of a manager in RAFAEL is 85,170 shekels gross per month, and in Israel Aerospace Industries — 81,687 shekels. It also states that Hevrat Namalei Israel / Israel Ports Company leads in the average cost of employment of one worker: about 47,624 shekels per month, with an average gross salary of about 39,073 shekels.

It is important to distinguish between two indicators: gross salary and cost of employment. Gross is the salary before taxes and deductions, while the cost of employment includes additional employer expenses: pension contributions, social conditions, training funds, car, benefits, and other elements. This is why in some project and infrastructure companies, the gap between gross and full cost of employment reaches about 10 thousand shekels per worker.

Where is the biggest and smallest gap

The report shows that the question is not only who earns more but also how great the distance is between management and ordinary employees. According to Ynet, the highest gap between executives and ordinary workers was found in the company of public centers / החברה למתנ”סים — about 10 times. Mako indicates that in this structure, the gap can exceed 15 times when comparing an executive and an average worker.

At the bottom of the salary table are service companies. For example, in the company of public centers, the average gross salary is 5,168 shekels, and the cost of employment is 7,415 shekels per worker. In “Amidar,” the average gross salary is 16,490 shekels, and the cost of employment is 20,237 shekels.

The smallest gap between executives and ordinary workers was recorded in the port of Ashdod — about 1.4 times. But this does not necessarily mean that the management there earns little. Rather the opposite: ordinary port workers receive very high salaries compared to many other state structures, which in the Israeli context is often associated with the strength of port unions and historically established employment conditions.

Family ties: what is known from the report

A separate sensitive topic is family ties within state companies. In Israeli political and public discourse, this is usually perceived not just as a question of “relatives at work,” but as a problem of trust in state structures. If a significant part of the workers is connected by family relationships, the question arises of how open the competitions are, whether external candidates have equal chances, and whether there are closed professional circles within the companies.

According to Mako, the report shows such indicators of employment of relatives: the port of Ashdod — 27.7%, RAFAEL — 24%, “Mekorot” — 7%. These figures are already quite noticeable, especially when it comes to companies related to infrastructure, defense, and state assets.

It is important to be precise here. In Russian-language retellings, the figure of 38% for “Mekorot” has already appeared, but in open publications that refer to the State Companies Authority report for 2025, this figure is not confirmed. Therefore, for publication, it is better to use verifiable data: 27.7% in the port of Ashdod, 24% in RAFAEL, and 7% in “Mekorot.” If a specific table in the official PDF is later found where 38% refers to another indicator, this can be clarified separately, but it is risky to present this figure as a fact now.

For Israel, the topic is especially acute due to the nature of the companies themselves. Water, electricity, ports, defense industry — these are areas where the state, security, and economy intersect directly. When an ordinary citizen sees high salaries, strong unions, and noticeable family ties, the question becomes not only financial but also moral: does the system really work for everyone, or is access to good jobs concentrated within closed circles.

Defense companies as the main driver of growth

The strongest part of the report is the role of the defense industry. In 2025, RAFAEL’s revenues grew by 21%, and Israel Aerospace Industries’ revenues by 13%. According to the State Companies Authority’s assessment, defense companies became the key factor in the growth of revenues and profits of the entire state sector of companies.

Mako provides additional data: RAFAEL’s revenues increased by about 3.8 billion shekels, operating profit rose from 934 million to 1,521 million shekels, and net profit from 950 million to 1,350 million shekels. Israel Aerospace Industries’ revenues grew by about 2.8 billion shekels, operating profit increased from 1,742 million to 2,599 million shekels, and net profit reached 2,458 million shekels.

These figures explain why there is not only an economic but also a political-security conversation around RAFAEL and “Taasiya Avirit” now. According to Ynet, the State Companies Authority is promoting possible large stock market listings: Israel Aerospace Industries is valued at about 100 billion shekels, and RAFAEL in the range of 60–70 billion shekels. Such listings could place both companies among the largest players on the Tel Aviv Stock Exchange.

But the issue of public reporting remains sensitive. Defense companies require full or partial secrecy of some deals, while capital market regulators require disclosure of information for investors. This is where the fine line between transparency and security lies: Israel cannot disclose all defense contracts and technologies, but if companies go public and attract investor money, the market requires clear rules, reporting, and control.

Women, the Arab sector, and the issue of representation

The report also shows serious problems with the representation of women in senior management. In the port of Ashdod and Israel Aerospace Industries, women hold only 17% of senior management positions. In RAFAEL, the figure is 23%, in “Rakevet Israel” / Israel Railways — 26%.

The best indicator among the mentioned companies is “Netivei Ayalon,” where women hold 48% of senior management positions, and the company is headed by a woman — Orly Stern. Compared to other state companies, this looks like an exception rather than a general norm of the system.

The situation with the representation of the Arab sector also remains weak. According to data provided by Ynet, the share of Arab workers, excluding Druze, on average is only 1–3%. The representation of Ethiopian descendants has increased and reached 2.9%, and the share of workers with disabilities has risen to 3.58%.

For a state that declares equal access to opportunities, these figures look problematic. Especially against the backdrop of high salaries in strong state companies. If such jobs provide stability, social conditions, a career, and high income, then access to them becomes a question of social mobility, not just internal personnel policy.

What this means for Israeli society

The State Companies Authority report for 2025 shows a dual reality. On one hand, Israel’s state companies have become more powerful: they earn more, defense enterprises receive record orders, profits grow, and some companies may become giants of the stock market. This is especially important in a period when security, technology, and industrial independence have become not an economic luxury for Israel, but a strategic necessity.

On the other hand, this success raises the question of fairness again. If the total cost of salaries in state companies increased to 23 billion shekels compared to 19.3 billion shekels in 2024, then society has the right to ask how transparent this system is, who benefits from the growth, and why the state receives only 1.61 billion shekels in dividends with a net profit of 9.8 billion shekels.

NAnews — Israel News believes that the main conclusion here is not that high salaries are a problem in themselves. In defense, energy, and infrastructure companies, specialists, engineers, managers, and technical teams work, on whom the security and functioning of the country depend. The problem begins where high salaries are combined with insufficient transparency, family ties, weak representation of different population groups, and the feeling that state assets are not always managed in the interests of all citizens.

For Israel in 2026, this is not a secondary topic. After the war, increased defense spending, social tension, and budget disputes, society will increasingly ask: if state companies earn record amounts, why doesn’t the ordinary citizen always feel it?

That is why the State Companies Authority report is not just a document for economists. It is a mirror of the Israeli system: strong, technological, profitable, but at the same time closed, uneven, and in need of greater transparency.