How is Social security configured ? Social Security and Health tax are mandatory deductions from gross pay. In addition to the employee’s contribution there is also an employer’s contribution. They are configured at two rates: a lower rate for gross pay up to 60% of the average salary (currently 5,171 sh – July 2012). The …
Tag Archives: employee
The Pension Test
If you want to retire with a “normal” amount of pension, you need to be sure you are utilizing to the maximum the options available to you. In order to do this you must first understand the makeup of pension plans, because you might very well be on your way of stepping into a mis …
New mandatory area tax
As expected the new area tax goes into effect today, March 20th, 2011. This new tax effects all workers in Israel. In fact it has been kept so secret, that you probably haven’t heard anything about it on the news. No wonder ! Read on and you’ll soon know why. Looking around at all the …
Job searches and employment agencies in Israel
So, you got terminated from your last job recently or you decided to find a job or did you just want to work from home. What do you do first ? Well, you should always keep your CV updated, for starters. Secondly, you can scan the want ads in the papers, but there is a …
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All about clothing stipends
The clothing stipend, or dmei bigud in Hebrew is not a labor law, and thus not all employers are liable to pay it. There are several ways in which an employer can pay the clothing stipend: 1) In the public sector (government, municipalities, police, career army, etc) it is paid …
A new site launched ! everything you wanted to know about negative tax stipends
If you are a salaried employee and make less than 6,200 shekels (gross) you are probably eligible for the negative tax stipend. Up until this year, the stipend was gradually worked in, first available only to certain area residents, but starting in 2011 it will be available to residents of all of Israel. To help …
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Changes in pension plan rates in public sector
The new referendum issued by the finance Ministry applies to all public sector employees and is in effect from Jan 1, 2011 According to this referendum, both employee and employer contributions towards benefits in Kupot Gemel for pension will be raised by 0.5% This means that from Jan 2011 – Dec 2012, the employee’s contribution …
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Five signs of a bad boss
There are many indications that one can detect if they are aware of them, even in job interviews (!), that will indicate a "bad" boss or mildy put "an employer you do not want to work for. This is especially true in Israel, where some employers just blatantly disregard labor laws. However, things are improving in this area in …
Are you employed in two places of employment simultaneously ?
Are you presently employed by two employers as a salaried employee ? NOTE: if you are employed by more than two employers, you will need to go to your local Bituach Leumi with a copy of each of your payslips and this article does not apply to you. If you are earning less than …
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Chapter 37 of the tax law – credit for support of one’s spouse
Everyone supports their spouse ! Well at least they should, I mean that’s what spouses are for, to support each other. Yes, but that’s not the kind of support we’re talking about here. Up until Dec 31, 2004, if a husband or wife did not work or have income from a pension or from self-employed …
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