For information on deposits made in other cases see:
According to the Foreign Workers Regulations (Deposit for Foreign Workers), 2016, employers of foreign workers in the construction industry, unique technology fields or through nursing companies are required to make monthly deposits into a separate account in Mizrachi - Tefachot Bank for each foreign worker they employ.
- In reality the deposit replaces the social payments, meaning that the employer is exempt from paying social benefits or provident fund payments to the worker.
- The obligation to deposit funds into the deposit account applies from the first month the foreign worker is employed.
- The employer is not entitled to deduct the amount of the deposit from the worker's salary.
- The deposit will be given to the foreign worker upon his permanent departure from Israel, but if an employee stays in Israel illegally, a fine will be deducted from the deposit.
- The obligation applies to employers in the construction industry and the unique technology field as of 01.08.2016, and to nursing companies as of 01.11.2016.
- There is no obligation to deposit funds for daily foreign workers, such as a citizen of a country bordering Israel (such as Jordan), who returns home daily, at the end of his working day.
- As of 01.02.2019, employers are also required to make monthly deposits for foreign workers employed in the hotel industry. For additional information see: Employers of Foreign Workers in the Hotel Industry must make Monthly Deposits.
Deposit amount in the construction industry and work in unique technology fields
- As of 01.02.2019, the deposit amount in the construction industry and unique technology fields is the amount the employer would have to pay for social benefits - Pension Insurance for Foreign Workers, severance pay, and any other provident funds specified in the collective agreement or expansion order.
- In accordance with the construction industry collective agreement from 28.03.2018, an employer must deposit 7.1% of the worker's monthly salary for pension insurance. An employer must deposit a minimum of 6% of the worker's monthly salary for severance pay (see the construction industry collective agreement from 29.06.2015).
- In addition to the deposit that includes pension insurance and severance pay, the employer is also required to make payments into the account for the worker's Education Fund (Keren Hishtalmut) if the collective agreement or expansion order requires so.
- Until 01.02.2019, employers in the construction industry and unique technology fields, deposit 710 NIS per month for each worker.
Deposit amount for nursing care companies that employ foreign workers
- The amount that a nursing care company that employs foreign workers must deposit is the higher of the following two amounts:
- The severance pay amount (6% of the salary) and the employer benefit contributions (6.5% of the salary as of 01.01.2017) that the nursing company must pay a foreign worker as established by an expansion order or collective agreements that apply to nursing companies.
- The severance pay amount and the employer benefit contributions that the nursing compay must pay the foreign worker based on the agreement signed between the company and the patient. For more information see Joint Employment of a Foreign Nursing Care Worker by a Nursing Company and Patient.
Target Audience and Prerequisites
- Employers of foreign workers in the construction industry.
- Employers of foreign workers in unique technology fields - Work performed based on a special permit granted to work in unique technology and machinery that does not exist in Israel, and which can only be conducted by a foreign entity.
- Nursing companies that employ foreign nursing care workers.
Stages of the Process
- The deposit money will be deposited in a separate bank account designated solely for this purpose and managed through the Deposits Unit at the Service Administration for Employers and Foreign Workers at the Population and Immigration Authority.
- Mizrahi Tefahot Bank (Bank 20, Branch 618) manages the special deposit accounts.
- The employer will transfer the deposit funds through a bank clearing center, which enables computerized transfer of payments.
- At the time of payment, the employer must send a report to the online reporting unit by using a set file, citing payment of the deposit for each foreign worker he employs. The report should include the details of the employer, the details of the foreign worker, the amount of the deposit and the period for which the deposit was paid.
- The employer or nursing company must transfer the deposit funds by no later then the 15th of the month following the relevant work month.
Paying the Deposited Amount to a Foreign Worker
- A foreign worker who permanently leaves Israel (according to the period of stay stipulated in his license) is entitled, upon his departure from Israel, to receive all the money deposited by his employer plus profits and minus the deduction for account management expenses and income tax.
- If the worker to stays in Israel past his licensed period, a fine will be deducted from his deposit according to the period of his illegal stay in Israel. In the event of an illegal stay of more than 6 months, the entitlement to receive the deposit will be denied.
- Deposit money that is not withdrawn by the foreign worker will be transferred to the Public Trustee after two years from when the worker's residence permit expired, and will be used to help with the welfare and health of foreign workers and for strengthening care and support services for foreign babies who have no status in Israel.
- For additional information see Withdrawal of Deposited Funds by Foreign Workers in the Construction Industry, Unique Technology Fields and Nursing Companies.
- Failure to pay the deposit on time by the employer, as detailed above, constitutes a violation of the conditions of the permit given to the employer for the employment of foreign workers.
- The Director General of the Population and Immigration Authority may impose restrictions or sanctions as a result of this violation, and may, among other things, prohibit the employer from employing new workers.
- In addition, this violation may also lead to civil and criminal proceedings against the employer.
- Paying the deposit does not exempt the employer from paying the worker's social benefits for the periods for which he did not pay the deposit.
- Welfare Department - Jerusalem Municipality
- Worker's Hotline
- Hotline for Refugees and Migrants
- Physicians for Human Rights - Israel
Assistance in Employing Nursing Care Workers
- Internet hot line for those who employ foreign nursing care workers
- Elder care law services
- Yad Riva - Legal aid for senior citizens
- Reut and Eshel - Guidance services for senior citizens and their families who care for them.
- Kav Lamassik Information and Legal Advice for Foreign Workers.
- Ba-Bayit- Welfare and Aid for the Golden Age
- For a complete lists of organizations offering assistance and support to senior citizens
- For a comprehensive categorized listing of healthcare organizations offering assistance and support to people with disabilities click here.
Laws and Regulations
- The Foreign Worker Law
- The Foreign Worker Regulations (Deposits for Foreign Workers) - 2016
- Ombudsman for Foreign Worker Rights Circular in the Ministry of Labor, Social Affairs and Social Services - pension and other contributions according to the extension orders.
- The Population and Immigration Authority rule no. 9.0.0003 from 01.08.2016 - deposits for foreign workers employed in the construction industry, special technology fields and by nursing companies.
- Original translation performed by The Shira Pransky Project.