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Earning Less Than Your Employee? When It's Discrimination

Adv. Sasha Bogatirov·December 17, 2025·7 min read
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Is this relevant to you? If you discover that an employee under your responsibility earns more than you for no clear reason, it is worth checking if there is wage discrimination.

Key takeaway

The most important point is that not every salary gap between an employee and their manager is legitimate, and if there is no real justification for it, it may be considered discrimination.

Vice President Discovers Surprising Salary Gap

Imagine this: you are a vice president in a financial company, responsible for a team of employees, including a specific worker. One day, you find out that despite being in charge of him, he earns 5,000 shekels more than you per month. The shock turns into anger when you realize there's no clear justification for this. You are more senior, with more experience and education, and greater responsibility. When you brought this issue to management, you didn't receive a satisfactory answer. They couldn't point to additional education, special skills, or outstanding performance that justify the gap. This situation makes you consider your legal steps, but also feel the injustice acutely.

The most important point is that not every wage gap between an employee and their manager is legitimate, and if there is no real justification, it may be considered discrimination.

What Courts Really Consider

When labor courts deal with cases of wage gaps, they look for clear justifications for these differences. If the gap is due to seniority, education, responsibility, or unique contribution, it may be deemed legitimate. Without such justifications, the gap might be considered discrimination. The Equal Opportunities in Employment Law aims to ensure there is no discrimination based on gender, marital status, or any other characteristic irrelevant to job performance. When there are no clear justifications for wage gaps, the employer may be required to justify their actions in court. Therefore, if you find yourself in a situation where the gaps are unclear, it is important to check the details and demand explanations from the employer. Any unexplained gap may be grounds for a lawsuit.

When This is Relevant — Checklist

  • Is there a significant wage gap without a clear justification?
  • Does the employee earn more despite having less seniority?
  • Is there no significant difference in skills or education between you and the employee?
  • Does the employer fail to provide a convincing explanation for the wage gap?
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The Specific Law That Applies Here

חוק רלוונטי
Equal Opportunities in Employment Law
Prohibits discrimination among employees in employment conditions
Wage discrimination can lead to legal action and compensation

The Equal Opportunities in Employment Law states that employers must not discriminate among employees based on gender, age, race, or any other characteristic unrelated to job performance. In cases of unjustified wage gaps, the law stands with employees, demanding employers provide solid justifications for differences in conditions. If you feel the wage gaps are unjustified, the law allows you to demand explanations. Failure to provide a convincing explanation may lead to legal proceedings where the employer will have to show why the gaps exist.

Questions Everyone Asks — But No One Asks a Lawyer

How do I know if this is really discrimination?
If there is no clear reason like seniority, skills, or additional responsibility justifying the gap, it may be discrimination.
What counts as justification for wage gaps?
Justifications can include differences in education, experience, or unique contribution to the company.
What should I do if I already found a gap?
First, ask the employer for explanations. If they are unsatisfactory, consider legal consultation.
Is the legal cost high?
Legal costs can be significant, but winning can include compensation.
How can I protect myself in the future?
Ensure salary agreements are written and clear, and don't hesitate to inquire about gaps.

Real Situations — Which Side Are You On?

  • A manager in a technology company discovers a new employee earns more without a clear reason. Unjustified gap.
  • A shift supervisor in a restaurant finds the new waiter earns a higher wage due to additional duties. Justified gap.
  • A sales manager discovers a subordinate earns more because he negotiated better. Gap for review.

What to Do Right Now

The first step is to check the reasons for wage gaps. Ask the employer for clear explanations, and record everything in employment agreements. If the responses are unsatisfactory, seeking legal advice may be the next step. If you do nothing, the gaps may widen, and you'll continue to feel injustice at work. It's time to take responsibility and demand what you deserve.

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