Elderly citizen’s law

Due to a recent law passed in the Knesset, there will be a huge upgrade in the awareness of Elderly people as to their rights. Many of them are unaware what their rights are. In order to combat unawareness the government has made it mandatory for Govt. offices and agencies to notify elderly citizens on …

Social Security reconciliation

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 …

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 …

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 …

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 …

Are you familiar with section 12 A of the labor law ?

There is a trend among employers, especially in Public sector jobs where there is a mandatory tender for every position. This lengthy beaurocratic process can take months. Especially if the employer hasn’t put the proposed position into the annual budget. In years past, there were employees who worked for years via employment agencies in the …

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 …

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 …

Employer’s Social Security contributions to change as of April 1st 2011

Social Security recently published directives to employers regarding a change in the % of employer’s contributions towards their employee’s benefits via payroll. The changes are basically a reduction from the lower bracket (up to 4,984 shekels) and a raise in the % from the higher bracket (anything above 4,984 shekels). The amounts are gross (pre …