2016 base salaries of foreign experts to increase

IMPACT – MEDIUM

What is the change? Israel has published a raise in the average gross monthly salary for 2016 to 9,334 New Israeli Shekels, which affects the calculation of the gross base salary for foreign employees.

What does the change mean? The gross base monthly salary of foreign experts must be at least double the average gross monthly salary, or 18,668 NIS (compared to 18,246 NIS in 2015).

• Implementation time frame: Immediate.
• Visas/permits affected: B-1 visas.
• Who is affected: Foreign experts.
• Business impact: The higher base salaries will affect corporate budgets.
• Next steps: Employers must adjust the salaries of foreign employees to meet the new base salary levels.

Background: The changes were published Jan. 11 and are effective from Jan. 1. The new base salary amounts do not affect foreign employees in the Short Employment Authorization (SEA) visa or Short-Term Expedited Process (STEP) categories.

BAL Analysis: Employers should take immediate action to ensure the salaries of all foreign B-1 professionals are in compliance with the new rates.

This alert has been provided by the BAL Global Practice group and our network provider located in Israel. For additional information, please contact your BAL attorney.

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