The Jerusalem Labour Court awarded the amount to Guy Eliyahu, a former maintenance worker who alleged he was subjected to humiliating treatment by Sara Netanyahu.
His claims included being asked to bring her food she requested, then being told he was making her gain weight.
She was also said to have called him back to the residence after midnight so he could heat a bowl of soup, as well as another night because he had not properly said goodnight.
The government and the private company that employed Eliyahu are to pay the fine.
More From This Section
Separately this week, Israeli police completed a probe into allegations Netanyahu and his wife used public funds for their private villa.
Police publicly gave no indication of the results of their investigation, though they reportedly recommended charges against Sara Netanyahu.
Last week, the Israeli state comptroller issued a critical report on Netanyahu's foreign trips, some with his wife and children, in 2003-05 when he was finance minister.