Minimum prevailing wage for foreign experts increased

IMPACT — MEDIUM

The Israeli government recently increased the monthly minimum prevailing wage for foreign national experts.

Key Points:

• Israel’s monthly minimum prevailing wage for foreign national experts increased by 12% to 23,460 NIS (about US$6,612).
• Employers needing to obtain or renew work permits for foreign national experts on or after Jan. 1, 2023, must increase the foreign national’s minimum salary to comply with the new rule.
• Work permit applications that were pending as of Jan. 1, 2023, must be increased to meet the new minimum prevailing wage.
• Israeli authorities will reject applications that do not meet the new prevailing wage for foreign national experts.

BAL Analysis: Businesses may see a slight increase in labor costs because of the new minimum wage. Employers should take the new wage minimums into account for their 2023 budgets.

This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.

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