The action that began five days ago was ended after an agreement was reached between the Israeli treasury and the Histadrut Labor Federation, Ynetnews.com said.
A joint statement said all core issues in the dispute had been resolved. "The agreement reached reflects the necessary balance between the need to improve workers' rights and the government's responsibility to protect and stabilize Israel's economy," the statement said.
Ynetnews said the deal included a pay hike and improved retirement benefits as well as a pledge to better enforce labor laws.
Notable deaths of 2014 [PHOTOS]