IMPACT – MEDIUM

What is the change? Israel has increased its minimum prevailing wage for foreign experts to 19,086 shekels (about US$4,970) gross per month (up from 18,668 shekels) for 2017.

What does the change mean? The increase affects B-1 foreign experts, but does not affect foreign workers on short-term authorization (SEA) permits or STEP visas.

  • Implementation time frame: Immediate.
  • Visas/permits affected:  B-1 work visas.
  • Who is affected: Israeli companies employing foreign employees on B-1 visas.
  • Business impact: Companies should budget for the wage increase.

Background: The Israeli government announced the annual increase to the average salary Monday. Foreign nationals on one-year B-1 work visas must earn at least the prevailing wage, which is double the average salary. Foreign nationals working in Israel under SEA permits or STEP visas are covered under different wage levels announced last week.

BAL Analysis: Companies are required to meet the new 2017 prevailing wages for B-1 foreign experts immediately and should identify affected employees and adjust salaries accordingly.

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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