Introduction:

Beginning 01.05.2017, employers of foreign workers who are asylum seekers are obligated to make monthly deposits into a security fund for them in the amount of 36% of the worker's salary, such that 16% is paid by the employer and 20% is deducted from the worker's salary
As of 01.11.2018, certain asylum seeker workers, as detailed below, are considered to be part of certain groups that have only 6% deducted from the worker's salary for the security deposit (and not 20%)
The deposit replaces payments that the employer would generally pay to for pension insurance, other savings accounts, provident funds or for severance pay
An asylum seeker worker that leaves Israel permanently when his permitted period ends is entitled to receive all of the money in the security deposit when he leaves. If he leaves the country after his permit expires some of the security deposit money will be deducted for the time he is illegally in Israel
Tip
This page deals with deposits made for foreign workers that are asylum seekers. For information on deposits made for foreign workers who are not asylum seekers, see Employers of Foreign Workers in the Construction Industry, Unique Technology Fields and Nursing Companies, must make Monthly Deposits for their Workers

According to section 1(11)1 of the Foreign Workers' Law,beginning 01.05.2017, employers of foreign workers who are asylum seekers are obligated to make monthly deposits into a security fund for them in the amount of 36% of the worker's salary ( such that 16% is paid by the employer and 20% is deducted from the worker's salary).

  • As of 01.11.2018, certain asylum seeker workers, as detailed below, are considered to be part of certain groups that have only 22% of their salary deposited, such that 16% is paid by the employer and only 6% is deducted from the worker's salary.
  • The "salary" from which the monthly deposit is made is the amount that severance pay is determined according to section 1 of the Severance Pay Regulations (Calculation severance pay and pay when a person quits and is considered to be fired) (the total regular salary without overtime hours and any other extras).
  • The deposits are made into a separate account in Mizrachi - Tefachot bank.
  • The deposit replaces social benefit payments that the employer required to pay by law or in accordance with a collective agreement for pension insurance, other savings accounts, provident funds or for severance pay. The employer should transfer the social benefit payments to the bank account designated for deposit money. In the event that the amount of social benefits owed by the employer is less than 16% of the worker's salary, the employer must transfer the difference between the two amounts to the deposit account.
  • An asylum seeker who permanently leaves the country at the end of his permitted period to stay in Israel is entitled to receive the full deposit upon leaving the country. If he leaves the country after his designated departure time, part of the deposit money will be deducted in accordance with the period he delayed. For more details, see Withdrawal of the Deposited Funds by an Asylum Seeker who is a Foreign Worker.
  • The employer can not get back any of the money deposited into the account (even if the employee has debt towards him), and the money in the account can not be subject to foreclosure.
  • Depositing the deposit to workers who are asylum seekers is intended on the one hand to ensure the workers pension rights and severance pay, and on the other hand to motivate the worker to leave Israel at the time determined by a final court ruling or by the Interior Ministry or the Population Registry Director.

Deposit amount for most asylum seekers

  • The employer is required to make monthly deposits of 36% of the worker's salary that is used to calculate severance pay (the regular salary without overtime hours and other additions) divided in the following way:
    • Employer's share - the employer has to make a monthly deposit of 16% of the asylum seeker's salary.
    • Worker's share- 20% of the security deposit amount is deducted from the worker's salary. This deposit is done after the original tax deductions.
  • The deposit replaces payments that the employer would generally pay to for pension insurance, other savings accounts, provident funds or for severance pay.
  • The employer should transfer the social benefit payments to the bank account designated for deposit money. In the event that the amount of social benefits owed by the employer is less than 16% of the worker's salary, the employer must transfer the difference between the two amounts to the deposit account.

Partial deposit for asylum seeker workers that are considered to be part of certain groups

  • As of 01.11.2018, a foreign worker who is asylum seeker that has an entry permit into Israel from the Population and Immigration Authority before 01.11.2018 and is in one of the following groups, is entitled to a reduced deduction from his salary for the security deposit:
    • Minor worker.
    • A worker above age 60.
    • Women.
    • Workers who are single fathers to a minor under their sole care because the mother died or is not in Israel or because her medical condition does not enable her to care for the minor, provided that the worker is not married to someone else and does not have a common law partner.
    • A worker who the Border Control Commissioner is convinced that due to his age or medical and mental condition, failure to receive part of the deposit may cause him harm to his health.
    • A worker for whom the Israel Police has evidence that he is a victim of conditions of slavery or human trafficking, even if he entered Israel after 01.11.2018.
  • These asylum seeker worker are entitled to monthly payments of 70% of the portion that the worker should deposit, and the employer can deduct only 6% (instead of 20%) from their salary for the deposit money:
  • The deposit amount for these workers is 22% of the worker's salary, as calculated for severance pay (the base salary without overtime hours and other additions), divided in the following way:
    • Employer's share- the employer has to make monthly deposits of 16% of the asylum seeker worker's salary.
    • Worker's share- 6% of the deposit amount will be deducted from the worker's salary - the worker's contribution is made after the original tax deductions.
  • For additional information see: [Foreign Worker's Regulations (Cases in which foreign workers who are asylum workers can receive their deposit before they leave Israel), 2018.

Target Audience and Prerequisites

  • Employers of a foreign worker who is an "asylum seekers" that meets all of the following conditions:
  1. He resides in Israel.
  2. His residence in Israel is not due to Israeli citizenship, approval for aliyah, aliyah certificate or a permit for permanent residence.
  3. He entered Israel through an illegal border crossing.
  4. He has a visa and a visitor's permit or a temporary permit for a visit, and there is a restraining order issued against him - until he leaves Israel or is expelled from it. For information on how to check an asylum seeker's permit see the Population and Immigration Authority website.

Stages of the Process

  • The bank that manages there deposit accounts is Bank Mizrachi Tefachot (bank no. 20, branch 618).
  • The monthly deposits should be made into a separate bank account designated only for this and managed by the Population and Immigration Authority's unit of deposits in the Service Administration for Employers and Foreign Workers.
  • The employer will transfer the deposit funds online through the form to pay a deposit for asylum seekers.
  • For information on how to calculate the deposit amount click here.
  • 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 asylum seeker worker he employs. The report should include the following details:
    • The employer's details
    • The worker's details
    • The amount of the deposit
    • The period for which the deposit was paid
  • After the deposit is paid, the employer will be sent a message via email confirming payment. The employer must send a copy of the message to the worker.

Deposit date

  • The employer must make the deposit each month on the date on which he must pay the asylum seeker's salary for that month. For more information about when salaries must be paid by law see payday.
  • In the month in which the asylum seeker worker leaves Israel, the employer must pay the balance of the deposit at least 5 days before the regular date, provided that the employer knows the worker's expected date of departure.

Paying the Deposited Amount to a Foreign Worker

  • An asylum seeker worker who permanently leaves Israel, according to the final court order or message from the Interior Ministry or Population and Immigration Authority Director, upon his departure from Israel, is entitled to receive all the money deposited by his employer plus profits and minus the deduction for account management expenses and income tax of 15%.
  • If the worker continues to stay in Israel past this period, a fine will be deducted from his deposit according to the period of his illegal stay in Israel.
  • In a case that the asylum seeker passes away, the deposit money he is entitled to is transferred to someone who can prove they are his spouse, child, parent or next of kin.
  • For additional information see Withdrawal of the Deposited Funds by an Asylum Seeker who is a Foreign Worker.

Please Note

  • An employer who fails to deposit money for an asylum seeker worker, is liable to administrative fines or a criminal suit against him.
  • Depositing money for an asylum seeker worker or reporting on the payment of the deposit does not constitute a confirmation of the legality of the asylum seeker's employment by the employer or the legality of the stay or work of the asylum seeker in Israel.
  • For additional information on the employment of asylum seekers see the Population and Immigration Authority website.

Aid Organizations

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