Israel | Minimum salary increased

Effective April 1, Israel’s minimum monthly salary will be updated to 5,880 NIS (about US$1,600) gross per month.

Key Points:

• The new minimum monthly salary will apply to foreign nationals employed in short-term employment authorization programs, as well as to 2(a)(5) asylum and protection seekers and general B-1 visa holders.

• Employers seeking to obtain or renew a work permit or who have a pending application on or after April 1 must increase the foreign national’s minimum salary to comply with the new rule. Immigration applications that do not meet the minimum salary will be rejected.

• The minimum monthly salary update is designed to help align wages with the rising cost of living.

BAL Analysis: Employers hiring foreign nationals must guarantee that their employees receive at least the updated minimum salary. Businesses may see an increase in labor costs because of the new minimum wage. Employers should take the new minimum monthly salary into account when planning their 2024 budgets.

This alert has been provided by the BAL Global Practice Group.

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