As Israel continues to attract foreign labour, it’s crucial for both employers and employees to understand the specific legal frameworks that govern salary deductions. CWS Israel is committed to informing and aiding in compliance with Israeli employment laws, ensuring that the rights of foreign workers are respected and obligations are met.
Foreign workers in Israel are entitled to the same conditions as Israeli employees, with additional protections like private medical insurance and suitable living conditions. Notably, the Population and Immigration Authority’s recent guidelines outline specific deductions permissible from a foreign worker’s pay:
- Housing and Related Expenses: Employers can deduct costs associated with non-owned accommodations and related utilities proportionate to the expenses they incur.
- Medical Insurance: Costs for compulsory medical insurance can be deducted up to specified limits based on the sector of employment.
- National Insurance Contributions: A small percentage is deducted for national insurance, crucial for the worker’s benefits in the country.
- Income Tax Compliance: Standard income tax deductions are managed by employers to ensure compliance with Israeli tax laws.
These provisions reflect Israel’s approach to balancing employer needs and worker protections. Understanding these rules helps prevent any potential misunderstandings and ensures a smoother integration of foreign workers into the Israeli workforce.
For more detailed guidance on employment regulations and to ensure your practices align with the latest legal standards, stay connected with CWS Israel. We are here to support your employment journey in Israel with up-to-date, comprehensive advice and services.
