Prevailing wage increases for foreign experts

IMPACT – MEDIUM

What is the change? Israel has increased its prevailing wage for expert foreign employees from NIS 18,000 to NIS 18,246 (about US$4,680) per month.

What does the change mean? Companies employing foreign experts must meet the new minimum threshold.

• Implementation timeframe: Immediate.
• Visas/permits affected: B-1 Work Visas for Foreign Experts.
• Who is affected: Israeli companies employing expert foreign nationals.
• Business impact: Companies should factor the new salary amounts into their budgets.

Background: The increase represents a 1.4 percent hike in the prevailing wage paid to employees in the B-1 foreign expert category.

BAL Analysis: Employers should make sure they are in compliance with the new minimum. Employers who do not comply could have their employees’ work visas canceled and may be barred from submitting future visa applications. Company executives may also face criminal penalties.

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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